Markets Surge on Hopes of Fed Rate Cuts in Early 2023
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An "everything rally" is occurring fueled by hopes of Fed interest rate cuts in early 2023. Stocks, crypto, commodities are all rising.
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Traders are piling into speculative bets like meme stocks, Ark Innovation ETF, bitcoin, and bullish options trades.
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Defensive assets like gold and Treasuries are also rallying on rate cut hopes.
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Fed governor Waller surprised by suggesting rate cuts could start as early as spring 2023 if inflation keeps falling.
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Risks remain as an early 2023 rate cut could signal economic troubles. The rally could reverse if outlook changes.