Courtney Garcia, Payne Capital Management senior wealth advisor, and Warren Pies, 3Fourteen Research Co-Founder, joins 'Closing Bell Overtime' to talk the week's markets action.

Wall Street

The Nasdaq finished the week with a gain of nearly 2%, marking its longest winning streak since late July and setting another record high. Market analysts attributed the rally to strong performance in the technology sector and widespread expectations that the Federal Reserve will cut interest rates by 25 basis points in the coming days.

Experts noted that while the rate cut is largely anticipated and already factored into market prices, investor attention will turn to the Fed's updated economic projections and guidance on future rate policy. Some analysts cautioned that if the Fed's outlook does not align with market expectations, there could be disappointment and volatility. While technology stocks remain attractive, analysts also highlighted opportunities in small caps, energy, and international markets, and suggested that a diversified approach including bonds may help offset potential risks from a weakening labor market.

Nasdaq ends the week at another record high

Finishing up almost 2 percent this week, it's the longest winning streak since July 28th. Could the market keep climbing next week when the Fed is expected to cut rates, or will this be a sell-the-news event? Well, let's bring in paying capital management senior wealth advisor and CNBC contributor Courtney Garcia and 314 Research co-founder Warren Pies. It's great to have you both here. Warren, I'm going to kick off with you with that question. Is next week a sell-the-news event if the market's already expecting a 25-basis-point cut here? Look, we're bullish on the market, 6,800 price target. It's tough to fade the market with this much strength, but if I had to guess, I would say we have a lot of positives priced in next week, and there's more room for the Fed to disappoint from my perspective. Just one thing I would look at, everybody knows we're going to get a 25-basis-point cut next week. That's basically baked in. I think what we're going to look at is the SEP, so it's the summary of economic projections, and where the committee sees is guiding rates for the end of 2026. Right now, there's about a 70-basis-point or three full cuts difference between the rates market, the SOFR market at that point in time, and the current SEP. I think you need to see that number, those convergence. That's what the market's looking for. If we don't get that, you could see some disappointment, maybe rates spike up a little bit and equities sell off. I think there's some room for disappointment next week, yes. Okay. Courtney, I want to get your thoughts on this, and also the fact that in trading today, despite the fact that we had a mixed day and maybe on the top line, not major moves for the major averages, breadth was negative, index performance really held up here, especially the S&P by big tech. Is that where you continue to park your capital, or do you look elsewhere, given a more broadening market in recent weeks overall? You definitely want to look to broaden out here. We absolutely want to own tech. I don't think that trade is over. If anything, I think you could start to see that even increase. As rates come down, you start to see people rethink having all their money in money markets and putting it into the markets. As much as we're saying you want to broaden out, and I do think that's what you should be doing, you get a lot of investors who get this FOMO, and they're saying, oh, I just want to be in this tech trade that's doing really well. That really could leave a higher as interest rates continue to come down, if in fact that happens, which is widely expected next week. But yes, I think with those extra dollars, you want to think of things like small caps, which have more floating rate and short-term debt, and they're really set to benefit from rates coming down, plus things like less regulation, more M&A. I mean, that's a space that really has had been talked about, hasn't had the run people expect it to. And there's a lot of other great areas, like energy, international, I mean, plenty of places to add your money. So I don't think tech's over, but I don't think you want to overlook these other areas of the market either. Warren, what do you think looking across asset classes? I see 6,800 target for you for the S&P through year end. That's right. We're still bullish on the market. We had that target coming into the year. We didn't ever dial it down. We kind of expected H1 volatility. And so we're still there. I think if we're going to get a pullback, I mean, we're in that season. The second half of September is the weakest point of the market. I think it makes sense if you're going to be in the equity market here to offset that with a big bond position duration. And I know that's kind of not a popular thing right now. Everybody's looking at debt and deficits. But I think the defining characteristic of the macro right now, which is what we look at, is ultimately a weakening labor market. And everybody wants to write it off as immigration and a supply factor. But I think that the signs of true weakening in the labor market are starting to build up. So what that means is the risk to the equity market is ultimately on the growth side. And that means you need to have a bond position, which is kind of an out-of-consensus thing for a lot of investors here who've been worried more about inflation for a while. OK. Courtney, you want to get your thoughts on small caps? Yeah. I mean, I think this is a really good area that you want to look at right now, mainly because if interest rates come down, this is one of the categories that is set to benefit from that. And I think this is really something that you want to look at here, because if the economy continues to stay on good footing, and I do think it is, there are questions about the labor market, which Warren brings up. There are a lot of other data points, whether you're looking at GDP growth, you're looking at companies' earnings, you're looking at how the consumer is holding up. I think we're going to continue to be in a strong economy. And if you're in a strong economy with rates coming down, I think that that's one of the places that's going to keep you really well positioned. So I'm not overweighting it, but I find that a lot of people are underweight in that area. And even a lot of our clients, because large caps doing so well, are a little underexposed there. So that's absolutely one of the areas that we're looking at right now. And Warren, just to dig a little deeper into your thoughts about the bond market right now, I mean, you say expect the 10-year to break below 4%. What drives that, especially since it would be considered a more contrarian view when there is so much focus on debt and deficits right now? Yeah, I mean, so I think there's a bit of a misunderstanding in the bond market. Everybody goes back to last year when the Fed started cutting rates, and they're like, well, the bond sold off, yield spiked. And many people said, hey, this was a Fed policy mistake. But you have to recognize what I call initial conditions coming into the cuts last year. So last year, yield curve was really inverted, more inverted than we've ever seen at the start of a cut cycle. And so that told me that the bond market was seized up and really expecting a recession going forward. And that's not the case right now. As Rick pointed out, we have a positively sloping yield curve now, 2s, 50 basis points below 10s. And so this setup tells me, as the Fed starts this rate-cutting cycle, we should expect to see rates across the curve start to come down. That's what happens normally. Didn't happen last year. Recency bias has a lot of people tripped up. And so I think the curve steepens modestly, but ultimately, yields across the curve come down. You're going to see that all-important 10-year break below 4%. There are going to be a lot of surprised people when that happens.

President Trump has backed down on his plans to send the National Guard to Chicago, for now. Instead, he told Fox News that federal troops will be deployed to a different city.

Chicago

Trump backs down on sending National Guard to Chicago

A suspect is in custody after the deadly shooting of conservative activist Charlie Kirk. Authorities say 22-year-old Tyler Robinson is being held at Utah County Jail, pending formal state charges, which are expected to be filed on Tuesday. CBS News' Andres Gutierrez and Anna Schecter have more.

Orem

What we know about the Charlie Kirk shooting suspect's arrest

The United Nations General Assembly has overwhelmingly voted to endorse a declaration outlining "tangible, timebound, and irreversible steps" towards a two-state solution between Israel and the Palestinians ahead of a meeting of world leaders.

New York

Middle East Conflict

UN endorses two-state solution declaration that condemns Hamas

22-year-old Tyler Robinson from Utah, suspected of killing conservative activist Charlie Kirk at a university in the city of Orem, was in custody on Friday (Sept. 12), Utah Governor Spencer Cox told reporters.

Utah man suspected in Charlie Kirk murder taken into custody

In Tunisia, the humanitarian aid flotilla for Gaza is set to leave Tunis. About 40 boats will try to deliver aid to the Palestinians under blockade. In Tunisia the departure was not easy, as two boats from the flotilla were subject to reported drone attacks.

Tunis

Gaza aid flotilla prepares to set sail after reported drone attacks

Brazil's Supreme Court has sentenced firebrand ex-president Jair Bolsonaro to 27 years in prison for coup plotting at the end of a landmark trial that divided the nation and drew U.S. fury.

Brasilia

Brazil's ex-president Jair Bolsonaro sentenced to 27 years in prison

Israeli Prime Minister Benjamin Netanyahu signed an agreement to push ahead with a controversial settlement expansion plan that would cut across land that the Palestinians seek for a state. "There will never be a Palestinian state. This place is ours," Netanyahu said.

Jerusalem

Netanyahu signs West Bank settlement expansion plan

The United Nations Security Council has condemned the Israeli attack on the Qatari capital Doha on Tuesday and called for de-escalation in a statement agreed by all 15 members, including Israel’s chief ally, the United States.

Doha

UNSC members condemn Israel over deadly strike on Qatar

Ryan Routh, accused of attempting to assassinate former President Trump in South Florida last year, is representing himself in court. As the trial opened, Routh forfeited his chance to deliver an opening statement, setting the stage for proceedings.

Fort Pierce

Trump assassination attempt suspect defends himself in trial

Photos of a "person of interest" in the assassination of Charlie Kirk were released by the Salt Lake City FBI. Authorities are searching for the person who shot and killed the conservative activist at an event at Utah Valley University.

Photos released of "person of interest" in Charlie Kirk assassination

Authorities shared new details about the suspect's movements leading up to the fatal shooting of conservative activist Charlie Kirk. The search for the suspect continued on Thursday.

FBI says it has good video of Charlie Kirk shooting suspect

President Donald Trump announced Thursday that he will award conservative activist Charlie Kirk, who was assassinated during a campus event in Utah, the Presidential Medal of Freedom posthumously.

Washington

Trump says he'll award Charlie Kirk the Presidential Medal of Freedom

Authorities say the weapon used in the fatal shooting of conservative activist Charlie Kirk has been recovered and law enforcement tracked the movements of the suspect.

Officials: Weapon in Charlie Kirk shooting recovered; suspect tracked

Trump vowed retribution in an Oval Office address after his close ally and conservative activist Charlie Kirk was fatally shot on a campus in Utah. A massive search for the killer intensified following Kirk's death, with police going door-to-door looking for the shooter.

Trump pledges to find killer of conservative activist Charlie Kirk

The UAE’s President Mohammed bin Zayed visited Doha a day after Israel’s strike, signalling Gulf solidarity. Qatar’s prime minister called the strike “state terror,” accusing Israel of killing hopes for a hostage deal and demanding Netanyahu face justice.

Qatar seeks ‘collective response’ to Israeli attack

Poland is rejecting the claim that Russian drones crossed into Polish airspace by accident and says the move is reckless and could lead to potential escalation.

Warsaw

Ukraine Invasion

Europe on edge after Russian drones invade Polish airspace

Prince Harry and King Charles had a private tea in London, Buckingham Palace. This marks their first meeting in nearly two years. Harry, the Duke of Sussex, last saw his father in early 2024, shortly after it was announced the King was undergoing cancer treatment.

London

King Charles, Prince Harry meet for the first time in nearly 2 years

U.S. President Donald Trump says rightwing political activist Charlie Kirk is dead after being shot in the neck at a university campus event in Utah. There is not a suspect in custody.

Conservative activist Charlie Kirk killed in shooting, Trump says

Brazilian Supreme Court Justice Luiz Fux voted on Wednesday (September 10) to acquit former President Jair Bolsonaro of forming a criminal organization and voted to annul his trial over jurisdiction, breaking with peers and raising the odds of an appeal after the final verdict this week.

Brazilian judge votes to annul Bolsonaro case, breaking with peers

U.S. President Donald Trump urged EU officials on Tuesday to hit China with tariffs of up to 100% as part of a strategy to pressure Russian President Vladimir Putin, according to a U.S. official and an EU diplomat.

Global Tariffs

Trump urges EU to impose 100% tariffs on China and India, sources say

Poland shot down drones that entered its airspace during a widespread Russian attack in western Ukraine, with the NATO member calling the incursion "an act of aggression." It marks the first time a member of the alliance has fired shots in the war.

Poland downs Russian drones in first shots fired by NATO member in war

Two Brazilian Supreme Court justices voted to convict former President Jair Bolsonaro of leading a criminal conspiracy to overturn the 2022 election, as they cast the first votes in the final phase of the ex-president's trial.

Two Brazil Supreme Court justices vote to convict Bolsonaro

Nepal’s prime minister has stepped down with at least 22 people dead, the country’s parliament in flames and its main airport shut down during a violent revolt. The unrest started over a social media ban and grew into a broader anti-corruption protest.

Kathmandu

Nepal’s parliament set on fire, PM resigns as protests spiral

U.S. President Donald Trump can't escape questions about Jeffrey Epstein as a congressional committee released a suggestive personal note to Epstein allegedly from Trump, for the convicted sex offender’s 50th birthday.

White House denies alleged Trump letter to Epstein is authentic

Israel's military said it "conducted a precise strike targeting the senior leadership of the Hamas terrorist organization," amid reports of large explosions in Qatar's capital city, Doha.

Hamas says none of its leadership killed in Israeli strike on Doha

French President Emmanuel Macron has named loyalist Sebastien Lecornu, a one-time conservative protégé who rallied behind his 2017 presidential run, as prime minister. Analysts say France is in the midst of a complicated political crisis.

Paris

France's Macron names loyalist Lecornu as new PM

Videos circulating online reveal a luminous flying object hitting the vessel. No crew members were harmed. Activists part of the flotilla say they will not be deterred by the attack, and that their mission will continue as planned.

Flotilla for Gaza ship struck by drone off Tunisia, organizers say

The Bureau of Labor Statistics said the U.S. labor market added 911,000 fewer jobs between April 2024 and March 2025. CBS News MoneyWatch correspondent Kelly O'Grady breaks it down.

U.S. jobs growth revised down by 911,000

A Michigan judge has dropped criminal charges against 15 people who were accused of trying to falsely certify Donald Trump as the winner of the 2020 presidential election. CBS News' Shanelle Kaul has the latest.

Michigan

Judge tosses case against 15 accused fake Trump electors in 2020

Israel says it carried out a strike targeting Hamas leaders. One Israeli official says it happened in Doha, Qatar. CBS News' Ramy Inocencio reports.

Breakdown