Key market focus before the end of the year
In the next few months, the market will continue to be affected by multiple factors, and the following points are particularly critical:
1. Monthly employment report: Employment data is one of the key bases for the Fed's policy making. The performance of the employment market will directly affect the Fed's future policy path, especially the pace and intensity of interest rate cuts. If the employment market continues to remain strong, the Fed may slow down the pace of interest rate cuts; if the data deteriorates, it may accelerate the process of interest rate cuts. Each monthly employment report may cause sharp market fluctuations and deserves close attention.
2. The actual number and magnitude of interest rate cuts by the Fed: By the end of the year, the actual frequency and magnitude of interest rate cuts by the Fed will be the core factors that determine the direction of the market. Although the market has expected the Fed to continue to cut interest rates, the specific timing and magnitude are still full of uncertainty. Market sentiment is very sensitive to these subtle changes and may fluctuate repeatedly. Therefore, investors need to pay attention to the Fed's statements and the actual progress of its monetary policy at any time.
3. The results of the US election: The US election is undoubtedly another major event before the end of this year. The results of the election may directly affect the direction of economic policies in the next few years, especially in terms of fiscal policy, taxation and regulation. Different candidates will bring about completely different policy expectations, so the market may show highly volatile characteristics before and after the election. Investors should be prepared for risk management for this uncertainty.
