Market players are seen recalibrating their portfolios as expectations grow that the Federal Reserve is expected to cut interest rates soon. In addition to optimism about the Fed's upcoming easing of interest rates based on yesterday's "U.S. Retail Sales" economic data report, it is also seen to have supported the shift towards risk sentiment.
Furthermore, it is likely that Donald Trump's presidency has once again increased concerns about geopolitical and trade risks while adding uncertainty to the market's dynamic portfolio.
Expected Fed interest rate cuts are seen as an opportunity for market investors to invest in technology sector stocks, due to lower borrowing costs (interest rates) and increased consumer spending (Consumer Spending).
However, the prospect of a second Trump administration has injected uncertainty into the geopolitical and trade landscape, further complicating market players' investment strategies.
