The performance of the three major Wall Street indexes this week was really impressive. They not only steadily continued their strong upward trend, but also ended successfully with a record-breaking attitude. Many people who are concerned about the market are curious: What exactly depends on supporting this wave of upward trend?

Is the Fed ‘s expectation of interest rate cuts still working, or is there a sector quietly taking the lead in leading the trend? And then again, will there be hidden worries that are not noticed in the seemingly positive market? After all, there were also sectors under pressure before. What will happen next after this record-breaking wave?

Recently, the three major Wall Street indexes have hit new highs, which looks quite lively, but if you think about it carefully, many people may be confused. Some people may say, isn’t it just the Federal Reserve going to cut interest rates? Can this keep the stock market going up? This is actually quite real.

The expectation of interest rate cuts is a major contributor to the rise in the stock market, but we have to think about it. At most, interest rate cuts are to help you, not to win coupons.

You see, FedEx earnings exceeded expectations and indeed pushed the stock price, but because of the pressure on the housing market, Reiner Construction’s revenue did not meet the standards, and its stock price fell directly by 4.2%.

What does this mean? Whether a company can make money by itself is the basis for the long-term rise of the stock market.

Moreover, Federal Reserve Chairman Powell also said that the current economic situation is very strange, inflation is still high, but employment has slowed down, and policies may change at any time.

If the subsequent interest rate cuts are not that much, or corporate profits cannot keep up, the stock market may really not rise. As Wells Fargo said, it may be more turbulent later, and this is not something that can be said casually.

From another perspective, some people may ask, isn’t Newmont Mining’s stock price doubled because of the rise in gold prices? Can this gold price continue to rise? Gold prices rose because of expectations of interest rate cuts, fear of inflation, and fear of government debt depreciation. These reasons sound correct, but everything is always variable.

If the Fed’s final rate cut was not as large as the market thought, or inflation gradually dropped, wouldn’t it be weak to push up gold prices? Moreover, Newmont sold its investment and rose by 4.3%. You can’t do this kind of selling assets for growth every day, right?

Of course, in the short term, those who worry about inflation and debt have not yet disappeared, and gold prices may still be able to hold on for a while, but if it continues to rise, no one dares to guarantee it. After all, the market has never gone as far as the same path.

Perhaps some people may question, is the only tool of interest rates available in the Federal Reserve? Can’t you think of other ways to protect employment and control inflation? The Fed is indeed such a tool. Think about it, if interest rate cuts stimulate employment and companies recruit more people, they may push up inflation.

If interest rates are raised to control inflation and companies dare not expand, employment will be even slower, which is a dilemma in itself. Moreover , Trump ‘s tariff policy may temporarily make inflation higher, which is equivalent to causing trouble for the Federal Reserve.

As for other tools, such as quantitative easing, the original text did not mention it. In reality, the most common and direct thing the Fed uses is interest rates. Other means are either slow or subject to various restrictions. So it is not that the Fed doesn’t want to use it, and there are not so many easy to use.