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Expectations, valuation & update

What a strange week.  I am guessing half our readers are relieved that the market rallied and half are upset they didn’t participate as much as they had hoped after absorbing the downside.  The S&P 500 hit a 52 week low last Thursday and then rallied 6% this week.  The Nasdaq 100 hit its 52 week low on Tuesday and rallied almost 8% from the low and for the week!  In the midst of all of this, $SNAP dropped 44% on Tuesday after it told investors that their optimism from a month prior had faded and they see a rapid deterioration in brand ad spending.  The Fed minutes released mid-week had two messages in them.  First, they might “pause” in September after the June/July 1% hikes and further 25 bps thereafter to see the effect they have had on inflation expectations.  Second, they also said they might need to go past neutral and be more “restrictive” in their tightening.  Two very different messages and the market choose the former and the narrative became peak Fed, peak inflation, peak negativity and the rally ensued.  Is this market interpretation correct?  Let’s examine.