Missions Impossible: The War, The Fed & The Yen

In Mission: Impossible, Ethan Hunt is always given a nearly impossible mission to accomplish. The objective is crystal clear, the deadline is urgent, and a plan is quickly formulated to achieve the mission. Like Hunt, President Donald Trump, Fed Chair Kevin Warsh, and Treasury Secretary Scott Bessent have clear missions. Their plans for accomplishing these missions are less clear.

Despite these uncertainties, the S&P 500 rose today to 7,600.50, nearly matching its June 2 record high. It's been a tug-of-war this summer between FEMO (fabulous earnings momentum) and these uncertainties. The S&P 500 has been fluctuating around 7,500 since May 14. We aren't convinced that the summer stall is over, but it might be.