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Stocks pushed higher across the board, with tech, financials, and small caps leading. Headlines were once again dominated by semiconductors, AI, and global trade talks.

The Fed cut rates by 25 bps to 4.00–4.25%, its first cut this year. The decision followed weak labor market data in recent weeks. Fed Chairman Jerome Powell stressed the cut was “risk management,” aimed at cushioning the labor market, not the start of aggressive easing.

The updated dot plot shows three cuts in 2025 (up from two in June). Still, policymakers are deeply split: some foresee no more cuts, others expect over a full point. GDP and employment forecasts improved slightly, but the wide dispersion underscores just how uncertain the economic path forward remains.

What It Means For You

Lower rates gradually ease borrowing costs for mortgages, credit cards, and business loans. The stock market usually welcomes cuts. Historically, when the Fed cuts at all-time highs, markets have been higher a year later every single time. Still, easing policy can lift inflation, making it important to own inflation-resilient assets such as precious metals, real estate, or quality dividend-paying stocks.

The PEG ratio, or price-to-earnings-to-growth ratio is a valuation tool that helps you determine if a stock’s price and P/E multiple is justified, by taking into account its future earnings growth.

The PEG ratio is especially useful for growth stocks. These companies often have high P/E ratios because investors pay a premium for future potential. By factoring in expected earnings growth, the PEG ratio puts those high valuations into clearer context.

A lower PEG ratio suggests a more attractive valuation.

The formula is simple. You divide the stock's Price-to-Earnings (P/E) ratio by its expected annual Earnings Per Share (EPS) growth rate.

The EPS growth rate is a consensus estimate of a company's future earnings by financial analysts, typically over a 1-5 year period.

Let’s take Apple (AAPL) for example:

AAPL PEG = 36/10 = 3.6

Indicating that AAPL is currently trading at a premium relative to its expected growth.

The week ahead is packed with market-moving events, from Fed speakers to critical data releases. The spotlight will be on PCE inflation. A hotter-than-expected print, alongside firm GDP, manufacturing, and sentiment data, could force the Fed to rethink its rate-cut path and temporarily slow the market’s melt-up.

Berkshire Hathaway is a diversified holding company led by Warren Buffett (who will be succeeded by Greg Abel in 2026). It owns a mix of businesses like GEICO, BNSF Railway, and Berkshire Energy, and holds large equity stakes in companies such as Apple, Coca-Cola, and American Express. With its vast cash reserves and broad exposure across industries, Berkshire is often viewed as a proxy for the overall U.S. economy.

Berkshire Hathaway’s model balances cyclical businesses with equity investments. Its Q2 2025 operating earnings fell ~4% to $11.16 billion, driven by weaker insurance underwriting, though investment income benefited from higher interest rates. With ~$340 billion in cash, it has flexibility for buybacks, acquisitions or large equity stakes. Trading at a ~1.5x book value, its stable cash flow and strong balance sheet make it solid defensive play, particularly if we see weakness in the broader market.

BRK-B sold off -16% between its Q1 earnings in May and Q2 results in August, but has since rebounded ~8%. The stock has reclaimed its 50 and 200-day moving averages and is consolidating at a key $490 support level. It is looking to potentially embark on an uptrend towards the next resistance level at $506.

Phreesia is a healthcare SaaS company that streamlines patient intake, registration, and payments. Its platform automates scheduling, insurance verification, check-in, and billing, helping clinics cut paperwork and errors. For example, when a patient arrives at a doctor’s office, Phreesia enables digital check-in, real-time insurance verification, and secure payments, saving staff time and improving efficiency.

Phreesia is deeply embedded in clinical workflows, creating high switching costs for providers. Unlike broader competitors like as Epic Systems, Oracle Cerner, or athenahealth, it focuses narrowly on intake and payments, a segment ripe for AI adoption. With millions of patient interactions, Phreesia can apply AI to predict no-shows, optimize scheduling, detect billing errors, and personalize reminders. This targeted approach could give it an edge over larger, less specialized rivals.

In its most recent quarter, Phreesia reported revenue of $117.3 million, up ~15% YoY, led by payments and subscriptions. Importantly, it turned profitable with net income of $0.7 million, reversing a loss in the prior year. The company also reported improved free cash flow and holds about $190 million in cash. Analyst price targets in the $33–34 range imply ~35–40% upside from current levels around $24.

Phreesia’s profitability is still nascent, and prolonged investment in growth could pressure margins. Budget-constrained providers may delay adopting new SaaS tools, while larger players like Oracle Cerner or Epic could expand into intake and payments. Execution risk is key. Missing growth targets or slower AI adoption could lead to volatility.

Ali is a full-time equity trader and investor based in Dubai, and the founder of First Mile Investing. He left his corporate career in 2024 to pursue his passion for the markets. He founded First Mile Investing to help beginners take their first confident steps into investing, with the goal of making the process less intimidating, more accessible, and empowering for everyone.