1. Market odds for a December rate cut dropped from 92% to 67%. 2. The Fed may pause its rate-cutting cycle, impacting rate-sensitive assets. 3. Q4 GDP growth faces challenges from permanent economic losses. 4. Consumer spending is weakened by delays in federal worker pay. 5. Positioning for Q1 2026 rebound is recommended amid uncertainty.
The Fed's decision to potentially pause rate cuts can lead to market volatility, similar to past events like the 2018 rate hike decision, which resulted in significant downturns in the S&P 500.
The article addresses key economic factors and Fed activity impacting S&P 500 sentiment and investment strategies, highlighting potential volatility and uncertainty.
The uncertainty surrounding the Fed's next moves will likely create immediate volatility in the markets, particularly in December leading up to the FOMC meeting.