Is there a chance for a rebound in the US stock market this time? Let's talk about why the market might rebound after the interest rate cut in December.
Recently, the stock market has dropped a bit, but don't rush to escape. There are several signals worth paying attention to:
**Interest rate cuts are almost certain** The Federal Reserve futures show an 82.7% probability of a rate cut in December, with the market predicting even more optimistically at 86%. According to legendary investors like Druckenmiller, liquidity is what truly drives the market - rate cuts = liquidity release.
**Most adjustments in history do not turn into bear markets** Since 2009, there have been 31 adjustments of more than 5%, and only 4 of them evolved into bear markets. In other words, the current "small fluctuations" in corrections are normal, and true bear markets are actually quite rare.
**AI and consumer stimulus are the twin engines** Trump recently signed an AI executive order (on par with the Manhattan Project), and Amazon announced a $50 billion investment in AI infrastructure. This directly benefits the chip chain (AMD, NVIDIA), power suppliers (Bloom Energy), and computing power companies (CoreWeave). Additionally, the government plans to issue "tariff rebate checks" to the middle class, stimulating consumption again—remember the market surge caused by the pandemic relief funds in 2020?
**Bottom line** Correction adjustment + High probability of interest rate cuts + New AI cycle + Consumption stimulus, what does this combination point to? The possibility of a year-end Rebound is still quite significant.
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Is there a chance for a rebound in the US stock market this time? Let's talk about why the market might rebound after the interest rate cut in December.
Recently, the stock market has dropped a bit, but don't rush to escape. There are several signals worth paying attention to:
**Interest rate cuts are almost certain**
The Federal Reserve futures show an 82.7% probability of a rate cut in December, with the market predicting even more optimistically at 86%. According to legendary investors like Druckenmiller, liquidity is what truly drives the market - rate cuts = liquidity release.
**Most adjustments in history do not turn into bear markets**
Since 2009, there have been 31 adjustments of more than 5%, and only 4 of them evolved into bear markets. In other words, the current "small fluctuations" in corrections are normal, and true bear markets are actually quite rare.
**AI and consumer stimulus are the twin engines**
Trump recently signed an AI executive order (on par with the Manhattan Project), and Amazon announced a $50 billion investment in AI infrastructure. This directly benefits the chip chain (AMD, NVIDIA), power suppliers (Bloom Energy), and computing power companies (CoreWeave). Additionally, the government plans to issue "tariff rebate checks" to the middle class, stimulating consumption again—remember the market surge caused by the pandemic relief funds in 2020?
**Bottom line**
Correction adjustment + High probability of interest rate cuts + New AI cycle + Consumption stimulus, what does this combination point to? The possibility of a year-end Rebound is still quite significant.