The Federal Reserve decided to cut interest rates by 25 basis points in its December meeting, adjusting the policy rate from 4.5-4.75% to 4.25-4.5%. This marks the Fed's entry into the second phase of 'no unnecessary rate cuts', indicating that the number of future rate cuts will decrease, and long-term rates are expected to remain around 3.0%. This decision implies potential risks of weak upward momentum in the future.

Recently, the market has been quite volatile, including the flash crash on Wednesday and the rebound on Friday. These fluctuations have been mainly influenced by options trading and leveraged liquidations rather than changes in fundamentals. As for the so-called 'Santa Rally', which is a short-term rise in the market that typically occurs around Christmas, the FOMC's decision has changed the market environment, making risk control more important than chasing profits.