Why did everything suddenly rise at the end of November?

After experiencing the wave of 'collective decline' in early November that made everyone's scalp tingle—by the end of the month, the financial market suddenly saw a rebound in everything.

U.S. stocks rose, government bonds rose, commodities rose, and Bitcoin bounced back 7% from its low to above 90,000. This reversal in the market was as quick as flipping a book.

So what exactly happened? Here are the three key things behind the market reversal.

First, the expectation of a rate cut in December was suddenly ignited.

Last Friday, New York Federal Reserve President Williams made a big dovish statement.

The market's expectation for a Fed rate cut in December instantly surged from 30% to 50%, and then, after several speeches from Powell's allies, the expectation skyrocketed to 85%.

Risk assets quickly revived.

Second, the holiday week sentiment turned around dramatically.

During Thanksgiving week, U.S. stocks took off directly:

• The S&P 500 rose 3.7% for the week, marking the strongest performance in six months.

• The yield on 10-year U.S. Treasuries fell below the psychological 4% threshold.

• Silver and copper broke historical highs.

Even the CME halting trading due to a glitch couldn't stop the rise.

Third, the liquidity bottom became sturdier.

Let's see what Bloomberg strategist Simon White said; his viewpoint is crucial. He mentioned that the Treasury and the Fed formed a 'double put option', and combined with positive remaining liquidity in G10, what does this mean? You can understand it this way: it's very difficult for the market to experience a systemic crash in the short term.

Some analysts even said, don't fight the Fed, and don't fight AI.

Because liquidity + AI = the biggest bottom logic of this round of market.

Additionally, Google released its AI large model and new TPU, and the sentiment in tech stocks rebounded directly, while Nvidia, on the other hand, was the biggest loser among the seven tech giants this month. Its stock price is currently around 177–178 per share, having fallen 13% compared to its 52-week high.

The People's Bank of China also reiterated recently that virtual currencies do not have legal tender status in China, and there are still risks associated with stablecoin usage.

If the Fed really cuts rates in December, will it turn into another cross-asset big market? If not, will it perform another counterattack?