Market Sentiment Shifts from Trump to Powell as Fed's Caution Damps Santa Claus Rally and Trump Trade

As the year draws to a close, market sentiment has shifted from optimism surrounding Donald Trump's economic policies to concerns over the Federal Reserve's recent cautious stance. A month ago, discussions were dominated by Trump's blueprint for economic growth, but now Jerome Powell, the Fed Chair, has taken center stage. Analysts suggest that the Fed's recent decisions may have dampened the anticipated 'Santa Claus Rally,' leading to a potential showdown between inflation concerns and market expectations. The Fed's approach is causing unease among investors, with some experts indicating that it has effectively disrupted the momentum of the Trump trade, raising questions about future market performance.