Wall Street stabilized after a rocky start to December, with the S&P 500 notching its sixth gain in seven sessions, led by megacaps like Nvidia. Bitcoin rebounded above $90,000 after nearly $19 billion in liquidations. Analysts highlight the strong U.S. economy and AI investment cycle as supports for corporate earnings. Federal Reserve policy influence on equity volatility is fading, with officials split over a potential rate cut next week. Key data delays and upcoming job reports may reignite volatility. Investors are cautiously rotating into value and cyclicals while hedge funds remain defensively positioned.

The Fed’s path debate intensifies as officials grapple with rate estimates and a potential December cut. Investors selectively rotate into cyclicals, financials, and industrials, fueled by corporate news like Vultr’s AMD-powered AI cluster and Boeing’s progress on the 777X. Market tone suggests repositioning for year-end, with hedge funds defensively positioned. Global asset flows show interest in Canadian banks, commodity majors, and select industrials, while enthusiasm in crypto spills into tech-adjacent software players. Economic data delays and conflicting signals may determine the durability of the latest rebound.

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