Why Did The Market Go Up Last Week? Suze Orman Says 'It's Because Of One Word - And That Word Is Hope'

When the stock market bounced back last week after a rough few weeks, many investors were left wondering: What changed? According to personal finance expert Suze Orman, "It’s because of one word — and that word is hope."

Here's a closer look at why Orman says the market rallied — and what that could mean moving forward.

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A Shift in Tone Sparks Optimism

On her "Women & Money" podcast, Orman explained that the market’s rise wasn't tied to a specific policy change or a finalized deal. Instead, it was driven by a shift in sentiment — especially among individual investors.

The biggest turning point? President Donald Trump said he would not fire Federal Reserve Chair Jerome Powell. For weeks, Trump had been vocal about wanting Powell removed, which added to market uncertainty. But his reversal signaled stability, giving investors some breathing room.

That change in tone, coupled with messages from the administration suggesting a trade deal with China might be close, gave people reason to believe things could get better — at least for the time being.

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From Machine Selling to Human Buying

Orman pointed out another key reason for the rally: a shift in who’s doing the trading.

Before last week, much of the selling was driven by algorithmic trading systems — machines programmed to sell when certain conditions are met, without emotion. But the recent rebound was led by individual investors, acting on the belief that prices had bottomed out and that recovery might be on the horizon.

Orman gave the example of Palantir PLTR, a stock many of her listeners hold. After dropping from its all-time high to the $60s, it rebounded to over $110 in just a few days — a sign, she said, of renewed confidence.

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Consumer Spending Is Still a Concern

Despite the temporary surge in market prices, Orman urged caution. On her podcast, she noted that many households have been cutting back on spending — avoiding restaurants, delaying purchases, and holding off on self-care routines like haircuts and manicures.

This slowdown in consumer spending creates a ripple effect. Businesses pull back on orders, shipping slows down, and companies begin tightening their own budgets. Orman compared it to her own experience producing a fireproof storage box she once sold on QVC: when tariffs and shipping costs become unpredictable, it's hard for businesses to move forward with large orders.

Time Is Running Out for a Trade Deal

Much of the current hope rests on the belief that a trade deal with China is coming soon. But Orman warned that without an actual deal being finalized, this optimism could fade quickly — and take the market down with it.

Shipping delays and low cargo volumes already signal trouble ahead. "And if that isn’t solved sooner than later, all I’m saying is don’t be surprised if you start seeing empty shelves and things like that," Orman said. 

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If consumers start seeing empty shelves in stores, especially heading into the holiday season, the economic impact could grow.

A Reminder to Diversify

Despite the ups and downs, Orman said her own portfolio — thanks to careful diversification — has managed to stay in positive territory. She reminded listeners not to put all their money in one area, whether it’s stocks, bonds, gold, or crypto.

"True diversification is key," she said. "If you have it, the hits won’t be as hard."

The market's recent rise may have been fueled by hope — but Orman was clear that hope alone isn't a long-term strategy. For now, investors should stay cautious, watch for real economic developments, and make sure their finances are built on more than just headlines.

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