Momentum Stocks Are Going in Reverse as Rate-Cut Outlook Dims
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A sudden bout of risk aversion is shaking markets, sending some of this year’s highest-flying stocks plunging and fueling a renewed slump in cryptocurrencies.
Many traders pointed to the dwindling probability that the Federal Reserve will reduce interest rates again in December as the most likely trigger for yesterday’s selloff. A growing coterie of policy makers now is signaling the central bank should hold off on another rate cut. Swaps traders are pricing in about a 50% chance of a reduction, down from 72% a week ago.