TLDR

MARKET RECAP → Stocks closed higher today, overcoming early volatility and finishing near session highs. Inflation data fueled ongoing discussion about potential Fed rate cuts, but the market seems determined to move higher.

BERKSHIRE CUTS MORE BANK SHARES → 💼 Berkshire Hathaway (BRK.B) sold off more Bank of America (BAC) shares. However, CEO Brian Moynihan praised Buffett's long-term support, signaling confidence in the bank’s future despite the reduction.

AUGUST INFLATION TICKED UP → 📈 U.S. inflation rose 2.5% year-over-year in August, mainly due to higher gas prices, prompting concerns over potential Fed rate hikes to balance inflation with economic growth.

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TODAY’S TOP NEWS

Berkshire Cuts More Bank Shares 

💼 Berkshire Hathaway (BRK.B) sold another large portion of its Bank of America (BAC) holdings as part of its ongoing strategy to trim financial sector investments. This marked a significant shift after years of solid backing for the bank.

📊 Despite the selloff, Bank of America's CEO Brian Moynihan praised Warren Buffett, calling him a "great shareholder" and emphasizing Berkshire's long-term support of the company. Moynihan remained optimistic about the bank’s future.

🏦 Berkshire’s move reflected Buffett’s broader strategy of adjusting its portfolio, reducing exposure to financials while continuing to focus on energy, insurance, and other industries. Investors watched closely for further adjustments in Berkshire’s holdings.

TODAY’S TOP NEWS

August Inflation Ticked Up 

📈 U.S. inflation rose by 0.6% in August, driven largely by surging gasoline prices. This marked the largest monthly increase in 2024, raising concerns about potential pressures on the broader economy.

⛽ Energy costs jumped 5.6%, with gasoline prices accounting for more than half of the overall inflation increase. Meanwhile, core inflation, which excludes food and energy, saw a more moderate rise of 0.3%.

💼 The uptick in inflation left economists speculating about the Federal Reserve's next move, with many anticipating continued rate hikes to keep inflation in check. However, the central bank faces a tricky balance between controlling prices and supporting economic growth.

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