The stock market is seeing record highs yet again, with investors swiftly moving into riskier assets like Bitcoin and tech stocks following the Federal Reserve's long-awaited rate cut last week. The S&P 500 and Dow Jones Industrial Average both reached new peaks after the Fed announced a half-point interest rate cut, signaling a shift from the previous aggressive hiking cycle that had pushed rates to a 23-year high.

Fear & Greed Index, which tracks seven market sentiment indicators, is currently indicating a "greed" reading. Strong economic data this week has further fueled market optimism. On Thursday, the S&P 500 recorded its 42nd record high close in 2024, and the Dow marked its 32nd record high close on Friday. All three major indexes concluded the week positively, with the Dow gaining 0.6%, the S&P 500 adding 0.6%, and the Nasdaq Composite rising by approximately 1%.

The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation measure, reported a 2.2% increase in consumer prices for goods and services annually, down from 2.5% in July. This reading was lower than expectations and brings the index closer to the Fed's 2% inflation target.

Additional encouraging data suggests a robust economy. The third estimate for Q2 gross domestic product (GDP) growth showed the U.S. economy expanding at a solid 3% rate year-over-year. Gregory Daco, Chief Economist at EY, described this as a "soft landing scenario," which is a positive development where inflation eases without triggering a recession.

In the housing market, which is highly sensitive to economic changes, the average rate on a standard 30-year fixed mortgage fell to its lowest point since September 2022, providing relief for those affected by the challenging housing market conditions. Applications for mortgage refinancing surged 20% last week, according to the Mortgage Bankers Association.

Investors are now awaiting the September labor report, scheduled for release next Friday. It's anticipated that employers added 142,000 jobs last month, an improvement over July's disappointing numbers. The unemployment rate is expected to have slightly decreased to 4.2%, indicating a still-robust labor market. With the Fed focused on maintaining labor market health, the report could provide insights into the Fed's actions at its November policy meeting.

Tech shares have continued to rise this week, driven by optimism surrounding the rate cut and strong earnings from Micron. Nvidia's shares jumped 4.6%, Tesla's rose 9.3%, and Meta Platforms' added 1.1%.

In China, stocks have surged following the central bank's introduction of measures to stimulate the struggling economy, including lower interest rates.

Oil prices experienced a decline for the week, with the national average gas price at approximately $3.21, according to GasBuddy. The Financial Times reported that Saudi Arabia is considering abandoning its $100 per barrel price target for oil.

Gold futures retreated from a new record high after reaching peak levels on Thursday. Gold has repeatedly set new records this year, driven by central bank purchases and concerns about the U.S. economy's health.

Bitcoin also saw gains this week, with the cryptocurrency trading at around $65,747 per coin.