Sharp mood swings are not a good sign [Video]

Markets are on edge as December Fed rate-cut expectations climb past 80%, and every word from the central bank now moves markets. Short-term yields are jittery, risk assets are swinging, and investors are balancing hope with caution. The backdrop is anything but simple: a softening jobs market, inflation still above target, and lingering uncertainty from tariffs. Data is slowly returning after the long government shutdown, but it only paints part of the picture — what the Fed signals could matter more than what the numbers show. Traders are hanging on every comment, weighing the odds and bracing for the next move. With year-end approaching, all eyes are on the Fed — and what it decides could set the tone for the market’s final stretch.