Bank of America: If the Fed cuts rates dovishly next week, the "Santa Claus rally" may be called off

Odaily Planet Daily News: Bank of America strategists stated that if the Federal Reserve’s economic outlook next week is overly cautious, the year-end rally in the stock market will be threatened. Currently, the S&P 500 Index (SPX) is approaching its all-time high, and investors are confident in the best-case scenario of “Fed rate cuts, easing inflation, and resilient economic growth.” If the Fed sends a dovish signal at next week’s meeting, it could actually put this optimism to the test—because it may indicate that the economic slowdown is greater than expected. Analyst Michael Hartnett wrote in a report: “The only thing that can stop the Santa Claus rally is a Fed dovish rate cut triggering a sell-off in long-term U.S. Treasuries.” (Jin10)