《Federal Reserve Rate Cut Expectations Trigger Stock Market Volatility》
On November 28 at 3 AM, the Federal Reserve released the minutes from its November meeting, revealing that a rate cut of 25 basis points may occur in December. Once this news was released, it quickly triggered a strong reaction in the financial markets. Market traders immediately adjusted their expectations, and the probability of a 25 basis point rate cut in December has now risen to 59.6%.
The expectation of a rate cut is undoubtedly good news for the stock market. The A-shares are expected to attract more foreign capital inflow, while the US stock market will benefit from lower financing costs, potentially supporting stock prices to continue rising.
However, the rate cut also reflects potential issues such as the slowdown in the US economic growth and inflationary pressures, adding uncertainty to the future direction of the stock market.