Recently, the possibility of the Federal Reserve lowering interest rates in September has significantly increased, with the probability rising from 80.3% the previous day to 94.4%, making it almost certain that a rate cut policy will be implemented. As a global financial center, the adjustment of U.S. monetary policy will have a significant impact on global financial markets.

Rate cuts are typically seen as a means to stimulate the economy and often have a positive effect on financial markets, particularly the stock market. However, we must not overlook the potential risk of market reversals. Some analysts believe that the release of such favorable news may be intended to attract more investors into the market, followed by unexpected market corrections.

It is noteworthy that adjustments to U.S. monetary policy often lead to significant capital flowing into Wall Street. This flow of funds may exacerbate the volatility of financial markets, presenting opportunities for investors while also accompanying risks.

In this context, investors need to remain vigilant and closely monitor market trends and policy changes. Although expectations of rate cuts may drive short-term market gains, potential risk factors such as changes in economic fundamentals and geopolitical situations should also be considered.

Overall, while the expectation of a rate cut by the Federal Reserve brings positive news to financial markets, investors still need to act cautiously and manage risks to cope with potential market fluctuations.