Market Stability Emerges Amidst Rate Cut Hopes and Gold Surge

After experiencing volatility, global markets have stabilized. Stocks are currently trading around 1.5% below recent highs, while Bitcoin is approximately 10% lower than its peak. This rebound is partly fueled by renewed expectations for interest rate cuts, with swap contracts predicting a cumulative reduction of around 125 basis points by year-end 2026. Federal Reserve Chair Jerome Powell has confirmed plans for a 0.25% rate cut this month, offering short-term relief to risk-sensitive markets despite the government shutdown delaying key economic data releases.