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In September, the Federal Reserve raised interest rates for the first time in more than three years. The Fed increased its key rate by 0.25%, bringing its target range to 3.75% to 4.00%.

Treasury Secretary Scott Bessent made headlines last week when the Treasury announced plans to increase its purchases of longer-term government bonds. The goal is to improve trading in the bond market and ease some of the pressure pushing long-term interest rates higher. Bessent also said the Treasury has a “big toolkit” and could expand its purchases beyond the amount first announced.

Profit margins have been rising sharply, but the gains have not been evenly spread across the market. Much of the strength has come from technology, especially semiconductor companies. Strong demand tied to artificial intelligence, cloud computing, and data centers has helped these businesses maintain strong pricing power and higher margins.

When headlines change by the hour, it shows why doing our own research matters. Short-term news can move markets quickly, but long-term trends are what truly drive results.

The Strait of Hormuz is a narrow, 21-mile-wide stretch of water in the Middle East. History tells us its name comes from the ancient Persian god of wisdom and order.