Congratulations, bulls! It is like an early holiday gift wrapped in a better-than-expected CPI report and some jolly strong bank earnings. Take a look at the charts from CNBC below. They paint a clear picture of why the market’s mood has shifted. A sharp drop in 10-year Treasury yields and a stock market rally that probably has some bears rethinking their life choices.


The Fed? Well, the consensus has flip-flopped faster than a politician during campaign season. Just a couple of days ago, after the too strong jobs report, we were bracing for little to no rate cuts. Now, the market is betting on two cuts by year-end. Guess Powell’s crystal ball might need a software update.
We should not pop the champagne just yet. Volatility is not going anywhere. While inflation cooling and potential rate cuts are music to the bulls’ ears, the road ahead could still get bumpy. Stick to your strategy, manage your risk and remember that no one wins by letting emotions run the show. Keep calm and trade on.