The expectation of a rate cut in December plummeted from 72% to nearly 50% in just a few days, and the S&P 500 felt the impact.
The market is groping in the dark: inflation remains high, the labor market is weakening, and the Fed is not delivering any clear signals, exacerbated by the data blackout following the shutdown.
The result is this: increasing volatility and increasingly nervous pricing regarding the next steps in monetary policy.