US Fed’s bold rate cut fuels optimism, but market caution grows over US elections and geopolitical risks

The Federal Reserve initiated a surprising rate cut while the US economy shows stable growth and cooling inflation. Chinese stimulus bolstered market sentiment, lifting equities and commodities. However, Middle East tensions and upcoming US elections inject fresh uncertainties. Investors are keen on Q4 earnings, with expectations for large caps to outperform. RBI's upcoming policy decision is critical amid these dynamics.