What happens now that the Fed is the only pillar for bulls? [Video]
|With the US on holiday, market activity has slowed, leaving investors to digest a strong month of earnings. The S&P 500 delivered 13.4% growth, led by healthcare, financials, consumer discretionary, and technology. Big Tech, including Nvidia, posted better-than-expected results, but concerns over cash flow, inventories and AI deal circularity weighed on sentiment.
The Fed’s recent dovish signals helped stabilize markets, pushing rate-cut expectations higher and supporting a tech-led rally. European and Asian markets have been mostly quiet, with mixed results in tech and limited upside.
Uncertainty remains high around AI valuations, Fed policy and global macro conditions. A Santa rally is possible if inflation stays subdued, but profit-taking and volatility remain risks. Gold and oil are responding to macro signals, with OPEC expected to stop bringing extra barrels to the market.
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