Powell

Bam Adebayo had 25 points and 10 rebounds, Norman Powell added 21 points in his return to Southern California and the Miami Heat held off the Clippers 120-119 on Monday night.

Powell was a key member of the Clippers for three seasons before being traded to the Heat before this season.

Andrew Wiggins scored 17 points and Kel’el Ware added 16 to help the Heat end a two-game losing streak and win on the road for the second time in five games. Miami is 1-2 to open a four-game trip.

James Harden scored 29 points and Kawhi Leonard added 27 as the Clippers lost at home for the first time in four games this season.

Ivica Zubac had nine points and 12 rebounds for the Clippers. Derrick Jones Jr., Bradley Beal and John Collins each scored 12 points.

The Heat shot 54.2% from the field and made 12 of their 25 three-point attempts to 50% for the Clippers, who were 17 of 41 from long range. The Clippers had 21 turnovers that the Heat turned into 37 points.

Miami led 120-116 after two free throws from Adebayo with 56 seconds remaining. Adebayo missed a shot inside with 26 seconds left and Harden made a three-pointer on the other end with 20 seconds left to pull the Clippers within a point.

The Clippers had a chance to win it, but Leonard missed a 26-foot step-back three-pointer at the buzzer.

The Clippers trailed by as many as 13 points in the third quarter before getting even 105-105 with 9:55 remaining on a three-pointer from veteran Chris Paul.

When Jerome Powell speaks, markets listen. As well they should. Powell serves as the chair of the Federal Reserve Board. As part of this role, he also leads the Federal Reserve Open Market Committee (FOMC), which sets the monetary policy of the U.S.

Powell recently hinted at a monetary policy change that seems positive for the stock market. But should investors actually be worried?

Federal Reserve Chair Jerome Powell answers reporters’ questions at the FOMC press conference on Sept.17, 2025. Official Federal Reserve Photo.

Good news for investors?

Powell spoke last week at the National Association for Business Economics conference held in Philadelphia, Pennsylvania. One of his key points in his address was an update on the status of the Fed’s “quantitative tightening” approach.

Quantitative tightening is the term used to describe when the Federal Reserve reduces the size of its balance sheet. To accomplish this goal, the Fed allows assets such as government-issued bonds to mature, or it actively sells those assets. This usually results in higher long-term interest rates, lower inflation, and a cooling down of an overheated economy.

The opposite of quantitative tightening is quantitative easing. With this approach, the Fed increases the size of its balance sheet. Quantitative easing is an expansionary policy that’s usually associated with a rising stock market.

In his recent remarks, Powell hinted that the Fed is close to ending its program of quantitative tightening. He said:

Our long-stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserve conditions. We may approach that point in coming months, and we are closely monitoring a wide range of indicators to inform this decision.

Powell always chooses his words deliberately and can often be somewhat ambiguous. However, the takeaway from his comments is that the Fed’s quantitative tightening policies could be almost over. This would seem to be good news for investors.

A more complicated picture

I chose those words deliberately and left room for ambiguity just as Powell likes to do. Why? Because there’s a more complicated picture if the Fed stops its quantitative tightening policies.

For one thing, the end of quantitative tightening doesn’t necessarily mean a return of robust quantitative easing. Some saw quantitative easing as something akin to steroids for the economy and stock market, while quantitative tightening was like a depressant. Using that analogy, discontinuing taking a depressant doesn’t boost strength in the same way as frequently taking a steroid might.

It’s also important to understand that the end of quantitative tightening could be a warning sign about the economy, and by extension, corporate earnings. The Fed doesn’t reduce the size of its balance sheet when the economy is weak. Powell’s remarks, indicating that quantitative tightening could soon taper off, might reflect significant underlying concerns by the Fed about the health of the U.S. economy, despite his seemingly positive statement last week that the economy “may be on a somewhat firmer trajectory than expected.” As the economy goes, so goes the stock market — usually.

Finally, there is a real risk that ending quantitative tightening could backfire. One of the main goals of the policy is to fight inflation. If the Fed returns to expanding its balance sheet, inflation could roar back. The effects of the Trump administration’s tariffs could add fuel to the fire, at least initially. Powell acknowledged in his speech at the National Association for Business Economics conference, “There is no risk-free path for policy as we navigate the tension between our employment and inflation goals.”

The Fed could find itself in a situation where it has to reverse tactics, which would likely create significant uncertainty for the stock market. If there’s anything investors hate, it’s uncertainty.

Should investors worry?

I think celebrating the Fed bringing its quantitative tightening policies to a halt is premature. However, it’s also too soon to worry about the potential impact on stocks from the decision.

We don’t know yet how quickly the Fed will begin increasing the size of its balance sheet. We don’t know how aggressively it will move if and when quantitative tightening comes to an end. We don’t know what else will be happening with the economy or the stock market.

What we do know, though, is that the stock market rises over the long term. Anyone with an investing time horizon measured in decades shouldn’t have anything to worry about, regardless of what the Fed does or doesn’t do in the near term.

JENNY Powell showcased her age-defying body following ‘game-changing’ treatment.

The radio and TV presenter, 57, took to Instagram and posted videos highlighting her incredible features.

Addressing her followers, Jenny revealed the results of lymphatic drainage treatment.

It is intended to help move lymphatic fluid in the body, which can boost immune function, as well as reduce swelling and inflammation.

She captioned the post: “Ever tried lymphatic drainage?”

Jenny revealed to the camera: “I just had the best lymphatic drainage treatment. It’s so nurturing.”

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Her updates also included before and after photos highlighting the treatment.

She told her followers: “I feel lighter, less sluggish and more in tune with my body.

“This lymphatic drainage treatment @thelymphclinic_ has changed the game for me.

“You know me , I like to find holistic alternatives to help me in my wellbeing journey

“A little lymphatic drainage around the tummy goes a long way! 

“It helps shift that stubborn bloating, boosts digestion, and gets everything flowing again — think flatter, lighter and less puffy. 

“It’s like a gentle wake-up call for your gut, your glow and your energy!”

Last month, Jenny sent her followers wild with stunning snaps from an Ibiza holiday.

The former Wheel of Fortune star looked incredible in a patterned bikini as she unwound after watching her friends tie the knot.

She wrote on Instagram: “We chilled, did nothing, did everything and celebrated the marriage of two beautiful souls @positivepsychotherapyandyoga and all amongst the natural beauty and cosmic energy of @atzaro_hotel what a magical energy we all created.

“Thank you Steve and Lyndsey, thank you @leanelacase .. more magical moments incoming!!”

Jenny reclined on a large outdoor bed surrounded by plants and foliage and basked in the golden sun.

The hotel she stayed at calls itself the “best luxury hotel Ibiza” and it has plenty of five star reviews from happy customers.

Rooms at the ‘nature-connected’ accommodation start from £225 for a standard double room for a night, while suites can cost £774-a-night.

Jenny’s fans complimented her snaps with one writing: “A bronze goddess looking beautiful as always.”

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Another said: “Absolutely Gorgeous.”

A third posted: “I mean the only statement is wow.”

When Home Depot (HD -0.68%) talks, the stock market listens. The blue chip Dow Jones Industrial Average component is a bellwether for consumer spending and the housing market.

In recent years, Home Depot’s results have disappointed. Earnings have been falling, and fiscal 2025 same-store sales are expected to grow by just 1%. But that sluggish growth could quickly fade into the rearview mirror.

In an effort to maximize employment and reduce inflation to 2% over the long run, Jerome Powell and the Federal Reserve are cutting interest rates by 0.25% — citing a weak labor market and “somewhat elevated” inflation. More cuts could be in the cards to boost consumer spending and avoid a recession. Although artificial intelligence (AI) has been driving the stock market to record highs, U.S. gross domestic product growth is projected to be just 1.6% in 2025 and under 2% every year through 2028 — illustrating weakness in the broader economy.

Here’s why an interest rate cut is great news for Home Depot, and whether the dividend stock is a buy now.

Image source: Getty Images.

A much-needed jolt

Higher interest rates have a significant impact on consumer spending, particularly on discretionary goods, services, and travel. When money is more readily available for borrowing, consumers may opt for a car loan or a mortgage because the monthly payment is lower. Or they may finance a home improvement project. In this vein, lower interest rates can lead to an increase in renovation projects, which benefits Home Depot.

There’s a big difference between going to Home Depot for a few spare parts to fix an appliance and redoing an entire room or section of a house. And Home Depot’s poor results suggest that a lot of customers are putting off big projects until conditions improve.

On its August earnings call (second quarter 2025), Home Depot said that lower interest rates would help boost demand and provide relief for mortgages. Home Depot CEO Ted Decker said the following:

When we talk generally though to our customers, each of our sets of consumers and pros, the number one reason for deferring the large project is general economic uncertainty, that is larger than prices of projects, of labor availability, all the various things we’ve talked about in the past. By a wide margin, economic uncertainty is number one.

The prospect of good-paying jobs and lower interest rates could certainly give Home Depot’s residential business a lift. However, the company has also been investing heavily in its professional and commercial contractor business. In June 2024, Home Depot completed its $18.25 billion acquisition of SRS Distribution, expanding its home improvement and construction business. SRS specializes in selling roofing products to contractors — which provides cross-selling opportunities with Home Depot’s retail outlets.

Home Depot made the SRS acquisition in the middle of an industrywide downturn — a sign that it is investing for the long term. SRS essentially makes Home Depot even more of a coiled spring for the next cyclical expansion period, potentially amplifying the benefits the company will feel from lower interest rates.

Taking a home improvement rebound for granted

The market is forward-looking and cares more about where businesses are headed than where they have been. And unfortunately for investors considering Home Depot, the stock is already priced as if interest rates will continue to fall.

As you can see in the following chart, Home Depot’s earnings were on the rise leading up to the pandemic, then entered a new phase during the pandemic as consumers accelerated spending on do-it-yourself home improvement projects, driven by low interest rates.

HD data by YCharts

But Home Depot’s earnings have been ticking down in recent years even though its stock price is around an all-time high — suggesting that investors are looking past the company’s near-term struggles in anticipation of a recovery.

In February, Home Depot raised its dividend by the lowest amount in 15 years and issued a dire warning to investors about a prolonged downturn in the home improvement industry. So it could take several interest rate cuts to really move the needle on consumer spending at Home Depot.

In the meantime, the stock is on the expensive side, with a price-to-earnings ratio of 28.2 and a forward P/E of 27.7 compared to a 10-year median P/E of just 23. Meaning that Home Depot’s earnings would need to grow 20% faster than its stock price just for the valuation to come back down to historical averages over the last decade.

A quality company at a premium valuation

Home Depot is an excellent company, but it is already priced for a recovery. So the stock isn’t a screaming buy now.

The good news is that Home Depot could still be a good buy for long-term investors who believe in the company’s potential for store expansions, same-store sales growth, and that the SRS acquisition will pay off. If Home Depot enters a multiyear period of double-digit earnings growth, its valuation could quickly come down, making the stock more attractive.

Home Depot could also reaccelerate its dividend growth rate, building on its 16-year track record of consecutive annual dividend raises. Home Depot yields 2.2% — which is better than the 1.2% yield of the S&P 500.

All told, Home Depot isn’t a no-brainer buy now because the stock price has run up ahead of anticipated rate cuts. But it’s still a decent buy for long-term investors.

It wasn’t a big surprise that Federal Reserve Chairman Jerome Powell cut interest rates at the Fed’s September meeting on Wednesday. In July, he implied in no uncertain terms that a rate cut was coming, and the likelihood was that it was going be a quarter of a point. That’s what has happened. The governing body also signaled that two more cuts would come at its next two meetings, in October and December.

Powell noted that there are mixed signals in the economy, which made it a difficult decision. Normally, the Fed keeps rates high until inflation backs down, and right now, inflation is higher than the Fed wants it to be. Nonetheless, the once-strong job market is beginning to falter, and a reduction in interest rates should stimulate the economy and employment opportunities.

A more active economy with more jobs and money flowing is great news for most businesses, and some companies will feel the change more acutely. Visa (V 1.19%), SoFi Technologies (SOFI 4.96%), and Carnival (CCL -2.86%) (CUK -2.67%), are three stocks that should benefit in a big way.

Image source: Getty Images.

1. Visa: The best indicator of spending habits

Visa is the largest credit card company in the world, and its performance tells the story of the economy to some degree. Because it’s a credit card network, its processed volume is a strong indication of how people are spending. And because it targets a wide range of demographics, its message is fairly universal.

The purpose of cutting interest rates is to boost the economy, and Visa is a major beneficiary of higher spending. Visa’s core business is providing the network, or infrastructure, that moves money from a customer’s partnering bank to a merchant, taking a small cut of each transaction. Although it has branched out to other services, they mostly center around different ways of moving money. More money flowing means more money for Visa.

It has been performing well despite the higher interest rates. In the 2025 fiscal third quarter (ended June 30), revenue increased 14% year over year, and payments volume was up 8%. It’s highly profitable, since it has a simple, low-cost model, and net income increased 8% over last year in the quarter.

Lower interest rates should further boost Visa’s earnings, benefiting this Warren Buffett-backed stock. Visa is a solid long-term investment, offering value to most portfolios.

2. SoFi: A young bank disruptor

Banks have a two-sided relationship with interest rates. They make more money on net interest income when rates are higher, but they also suffer from higher default rates because consumers struggle to pay back loans. They also take out loans at lower rates for that reason, and altogether, banks usually do better with lower rates.

That goes for the industry as a whole, but I’m picking SoFi in particular partly because of its large lending segment, and partly because it’s growing much faster than almost any other bank, which means it stands to gain a lot from an improving economy.

SoFi is a neobank, a cadre of digital banks that have no physical branches and offer a modern take on financial management. In addition to student, personal, and home loans, it offers a broad array of standard banking services and typically beats out national averages on savings rates for deposits.

It also offers non-standard services like cryptocurrency trading on its app, and it recently said it would offer international money transfers on a Blockchain network. That could offer real value, since sending money internationally is often a complicated, expensive, and long process.

SoFi’s lending segment struggled last year when interest rates were at a high, and it has already benefited from lower rates with accelerated revenue growth and better credit metrics. Even lower rates should help all of its segments, which, aside from lending, include financial services, like bank accounts and investing, and tech platform, which is a business-to-business financial infrastructure.

As it becomes a larger and more formidable player in finance, it should be able to weather future uncertainty even better.

3. Carnival: Great performance, high debt

Carnival is sailing through smooth seas as customers continue to sign up for its cruises. Demand is at historical highs, operating income is at a record, and the company is ordering new ships and launching new destinations to meet all of this demand.

There’s only one kink in the business: it has massive debt. It’s been paying it off responsibly, but it’s still more than $27 billion. This year, it has refinanced $7 billion at better rates, saving millions on interest. It will now be able to refinance more of its debt at lower rates.

Outside of the debt, the investment thesis for Carnival is strong. It’s the largest global cruise operator, and demand has stayed healthy despite high inflation. That’s resiliency.

Carnival stock is still cheap today due to the concerns about the debt, but as it pays it down and becomes more profitable, expect the stock to keep climbing.