《Federal Reserve Rate Cut Expectations Impact on Stock Market》
At 3 AM on November 28, the Federal Reserve released the minutes from the November meeting, revealing that a rate cut of 25 basis points is expected again in December.
As soon as this news broke, the financial markets were instantly stirred. Market traders quickly adjusted their expectations, with the likelihood of a 25 basis point rate cut next month rising to 59.6%.
For the stock market, the expectation of a rate cut is undoubtedly a significant positive. The A-shares are likely to welcome an influx of foreign capital, and the U.S. stock market will also support stock prices due to lower financing costs.
However, the rate cut reflects concerns about the U.S. economic growth rate and inflation, adding uncertainty to the future trends of the stock market.