Markets Soar Before the Rate Cut

Record Run — The S&P 500, Dow, and Nasdaq all closed at all-time highs Tuesday as traders bet the Fed’s two-day meeting will end with a 25-basis-point cut, reinforcing confidence in a soft-landing scenario. (Forex)

Policy Setup — Futures markets now price a 98 percent chance of easing to a 3.75 to 4.00 percent range, marking the second reduction this year after softer inflation and a cooling labor market boosted dovish sentiment. (Forex)

Liquidity Pivot — Jerome Powell’s October remarks on tight repo conditions strengthened expectations that quantitative tightening could soon end, giving credit markets a potential relief rally. (Federal Reserve)

Trade Thaw — Reports of progress between Washington and Beijing lifted global sentiment, with sources suggesting the U.S. may cut certain tariffs in exchange for China’s crackdown on fentanyl-related exports. (Canada)

Strategic Deals — Trump’s rare-earth agreement with Japan’s new prime minister highlighted a broader U.S. effort to diversify supply chains away from China in key sectors like semiconductors and EVs. (Reuters)

Geopolitical Tone — The coming Trump-Xi meeting will be watched for signs of genuine de-escalation after years of volatility that shaped the modern trade landscape. (Reuters)

Street Optimism — Wells Fargo projects an “everything rally” into year-end and targets 7,100 on the S&P 500 by late 2025, citing seasonality, AI investment, and consumer stimulus as synchronized tailwinds. (Investing)

UBS Path — UBS echoes the bullish outlook, forecasting 7,300 by mid-2026, arguing that supportive policy and resilient corporate profits can sustain gains even as valuations stretch. (United States of America)

Sentiment Check — Bank of America warns that global investor exuberance is nearing the upper bound of its historical range, making breadth and leadership rotation the critical signals to watch from here. (Investing)

Crypto Momentum — Bitcoin hovered near $115,700 after a two-week rebound, with traders weighing Fed easing odds and U.S.–China talks that could reshape macro liquidity. (Canada)

Ark Reentry — Cathie Wood’s Ark Invest added $30.9 million in Block shares as it boosts exposure to AI-linked fintech plays ahead of rate cuts. (Canada)

Prediction Play — Trump Media’s new “Truth Predict” platform will let users trade event contracts via Crypto.com, fusing social media and blockchain prediction markets. (CoinDesk)

Amazon Efficiency — Amazon confirmed 14,000 corporate job cuts aimed at flattening management layers and improving productivity as AI automation accelerates across its logistics network. (Reuters)

PayPal Push — PayPal stock jumped 9 percent after unveiling its new integration with ChatGPT that will let users shop and pay directly within the AI platform, while also raising full-year guidance and launching a quarterly dividend. (Reuters)

NVIDIA Dominance — NVIDIA surged above $200 after unveiling next-gen chips, a U.S.-built AI-native 6G stack, and seven Department of Energy partnerships that solidify its role as the infrastructure backbone of global AI. (NVIDIA Blog)

Gold Divergence — Capital Economics expects gold to fall toward $3,500 by 2026, arguing its recent spike was driven more by speculation and FOMO than by macro fundamentals. (capitaleconomics.com)

Bull Case — Bank of America sees the opposite path, projecting $5,000 next year as deficits, de-dollarization, and sustained central-bank buying create a powerful floor for demand. (Reuters)

Commodity Takeaway — The divergence between gold and crypto underscores how different risk hedges are reacting to policy expectations rather than crisis fears. (Yahoo Finance)

Watch QT — If Powell signals an early end to balance-sheet tightening, consider adding duration through high-quality bonds or REITs that benefit from easing liquidity. (Reuters)

AI Exposure — Balance your AI allocation between dominant chipmakers like NVIDIA and service enablers such as PayPal or Microsoft for multi-sector participation. (NVIDIA Blog)

Gold Discipline — Keep gold within 2 to 5 percent of your portfolio as a stability hedge rather than a speculation play given the conflicting long-term forecasts. (Yahoo Finance)

Crypto Allocation — Treat Bitcoin as a high-volatility satellite position and avoid chasing short-term rallies until after the Fed’s tone is clear. (Investing.com Canada)

Upcoming Catalysts — Watch for key earnings from Apple and Microsoft, Powell’s press conference, and any Trump-Xi policy framework updates this week. (Reuters)