The stock market staged a powerful comeback during the shortened holiday week, as expectations of a Federal Reserve rate cut at the Dec. 10 meeting soared, fueling broad-based gains across sectors.
The rally was ignited by a notable shift in tone from Federal Reserve officials. Several members openly signaled support for a 25-basis-point rate cut, flipping market sentiment that had, until last week, priced the odds of such a move at 50% or less. According to markets, those chances have now surged to nearly 90%.
