September 26, 2025

Markets:

Stock futures climbed Friday after the release of key inflation data.

S&P 500 futures rose 0.3%, Nasdaq 100 futures gained 0.2%, and Dow Jones Industrial Average futures added 178 points, or 0.4%.

August’s personal consumption expenditures (PCE) index — the Fed’s preferred inflation gauge — showed core inflation (excluding food and energy) running at 2.9% on an annualized basis and 0.2% month-over-month, right in line with expectations. The headline index also posted a 2.7% annual increase and a 0.3% monthly gain, matching forecasts.

The in-line data helped steady markets, with futures extending gains. Still, the move followed Thursday’s strong jobs numbers and a sharp upward revision in Q2 GDP to 3.8%, both of which sparked concerns that resilience in the economy may give the Fed less urgency to cut rates.

Portfolio:

Glad to have this week’s data out of the way — now we can refocus. End-of-quarter rebalancing is still in play, but the narrative around “tops” and fear-driven selling was predictable. Markets fell three straight sessions, headlines screamed about tops, and yet the disbelief and lack of conviction only confirm what we’ve said for months: the pain trade remains higher.

Funds still need to chase performance into year-end — that’s the rule of the game. We don’t make them, but we know them. Disbelief is still the fuel this rally feeds on.

Heading into Q4, we couldn’t be more excited. Expect a few swings into 9/30, but the overall trend remains intact, especially with today’s premarket strength.

We’re entering Friday’s session positioned in ONDS, CIFR, and EOSE.  Queue is igniting, be ready.