With US stock futures currently down 1-1.5% in what has been a notably weak December, a major question facing investors is whether
Recent selling is simply profit taking/portfolio rebalancing in an illiquid market after a strong 2024 as a whole (e.g., S&P up 25% and the Nasdaq 31% -- see Bloomberg table below)
Or
Investors are revisiting their risk appetite in the context of a less dovish Federal Reserve, other policy uncertainties, and a more challenging global context.
#economy #markets #investing #investors