CNBC: The market remains confident in a year-end rebound, with cautious optimism on the rise

According to CNBC, although the market may have had a rocky start in December, the trading engine still seems to have momentum, with hopes of reversing the turmoil of November. Bitcoin has recovered some of its recent losses, and tech stocks rose in U.S. trading on Tuesday, helping the stock market rebound from the previous day's pullback—one that interrupted a five-day streak of gains. This rebound indicates that investors' willingness to take on market risk has not disappeared; it just needed a moment to catch its breath.

Other indicators also show that the market maintains sustained confidence in a year-end rally. According to the CME FedWatch, investors expect an 89.2% chance that the Federal Reserve will cut rates by a quarter percentage point at the upcoming meeting on December 10. This expectation has surged significantly compared to a month ago, when the likelihood was closer to a "fifty-fifty" chance.

Doug Beath, a global equity strategist at Wells Fargo Investment Institute, stated, "Barring any surprises, the market's attention is shifting back to fundamentals. It seems the market is focusing on better-than-expected earnings forecasts for the fourth quarter and the 2026 calendar year, while also looking beyond the current economic slowdown we are experiencing to anticipate a growth acceleration later next year." If investors are looking for a theme for the year-end rally, they may have finally found it: cautious optimism is striving to drown out the noise in the market.