The Missing of ‘Santa Claus Stock Rally’

With the recent 25 basis rate cut, traders and investors are confused with the hawkish pivot signal sent by the chairman Jerome Powell. Instead of halting the rate cut, the FED forced to cut rate despite of the bounce of inflation.

With the inflation going higher, FED should have remained its ‘higher for longer’ policy instead of forcing its way to cut rates. Market is now losing confidence on 2025 rate cuts.

The recent market turmoil tells it all.

The missing S&P Santa Claus rally brings leads to further S&P drop and wider market disappointment.

1. The messy rate cut and hawkish pivot
2. Missing of Santa Claus rally
3. Inflation is now more sticky
4. The upcoming trade war
5. Uncertainty of Trump presidency
6. Raising bond yield
7. Higher VIX averages
8. Fewer 2025 fed cuts
9. Higher mortgage rate and more expensive loans
10. More defaults and etc