Fed Daly's December Rate Cut Support Drives Market Rally & Shifts Monetary Policy Narrative

On November24,2025 (UTC), San Francisco Fed President Mary Daly supported a December rate cut citing fragile labor markets and easing inflation [1][6]. This shifted market sentiment: CME FedWatch showed an 81% December cut probability (up from 69.4% prior day) [2]. Markets rallied: NASDAQ rose +1.73% (Nov24), outperforming S&P500 (+1.03%) and DJI (+0.17%) [0]. Over Nov24-26, NASDAQ gained ~2.3%, S&P500 ~2.34%, DJI ~1.92% [0]. Tech stocks led gains, aligning with rate cuts boosting AI investments [0]. Contrary to original panic sell-off predictions, markets rallied [0].

1. Tech sectors benefit most from rate cuts: NASDAQ’s outperformance reflects growth stock preference amid easing policy [0].
2. Fed pivot solidified: Daly’s comments (Powell ally) shifted narrative to dovish, with USD Index retreating below 99.50 [7].
3. Labor market concerns are secondary: Investors prioritized rate cut benefits over labor warnings [0].

• Risks
  : Missing AI sector data (no bubble claim validation); curated news tool failure limits context.
• Opportunities
  : Rate cuts boost growth stocks (tech/NASDAQ), as seen in the rally [0].

• Event Timing: November24,2025 (UTC).
• Core Developments: Daly’s rate cut support;81% cut probability; positive market reaction.
• Gaps: Curated news (API error); AI sector data; job vs AI investment data.