The three major US stock indices have recently surged together, and the underlying logic is actually quite clear — inflation data has improved, and the market is starting to wildly imagine a rate cut.

Let's look at the specific numbers: the Dow Jones Industrial Average rose by 0.14%, the Nasdaq Composite performed even more strongly, jumping 1.38%, and the S&P 500 followed closely with a 0.79% increase. Tech stocks have become the main drivers of this rally, with Micron Technology soaring over 10% on better-than-expected earnings, Tesla also jumped over 3%, and industry leaders like Nvidia and Microsoft each gained more than 1%.

The key focus is on macroeconomic data. The US November CPI year-over-year increase slowed to 2.7%, a figure that is enough to boost market confidence. With inflation easing, is a rate cut still far off? According to the latest data from the CME FedWatch Tool, the probability of a rate cut in January has risen from 24.4% to 27.7%. In other words, the market generally believes the Federal Reserve will ease policy, which is undoubtedly a bullish signal for risk assets like US stocks.

Chinese concept stocks and precious metals markets have also shown some movement. The Nasdaq China Golden Dragon Index closed up 0.97%, Xpeng Motors surged nearly 3%, and BOSS Zhipin jumped 5.22%. In gold markets, the London Gold spot price fluctuated around $4,330, while London Silver retreated above $65.

All of this has also had a significant impact on the crypto market. As high-risk assets, cryptocurrencies have always been closely linked to the Federal Reserve’s policy direction. Whenever rate cut expectations heat up and liquidity becomes more abundant, mainstream cryptocurrencies like Bitcoin and Ethereum tend to rise along with the market. After the US CPI slowdown reinforced expectations of a rate cut, market risk appetite clearly improved, and crypto sentiment also got better. However, it’s important to note that the crypto market itself is highly volatile, and regulatory scrutiny is continuously intensifying. Future trends will depend closely on the Fed’s next moves and changes in global regulatory attitudes.