The expectation of interest rate cuts in January is being challenged, mainly influenced by the labor market and ISM manufacturing PMI data.
Despite the market sentiment being relatively pessimistic, this may actually be a good entry point.
Thursday's unemployment rate data may further impact market trends, and pessimistic sentiment may continue until the final data is released on January 29.
If January does indeed pause interest rate cuts, and there is no resurgence in expectations for rate hikes (such as inflation rebounding or an overheating labor market), every market decline could become an opportunity to accumulate positions in batches.