#Federal Reserve cuts interest rates by 25 basis points leading to market volatility. On December 11th, 2023, Beijing time, the Federal Reserve announced its third rate cut of the year by 25 basis points, adjusting the target range for the federal funds rate to 3.5%-3.75%. This decision triggered varying degrees of price fluctuations across different asset classes, as detailed below:

1. U.S. Stocks: The three major indices collectively closed higher, with the Dow Jones soaring by 497.46 points, a rise of 1.05%; the S&P 500 index rose by 0.68%, just a step away from its historical high; the Nasdaq increased by 0.33%. Sector performance was mixed, with infrastructure stocks like GE Vernova and storage concept stocks like Micron Technology leading the gains, while video game stocks like Roblox and the cryptocurrency sector saw the largest declines. Additionally, Oracle fell over 7% in after-hours trading due to disappointing earnings reports.

2. Chinese Related Assets: The Nasdaq Golden Dragon China Index rose by 0.65%, with most popular Chinese concept stocks increasing; the FTSE A50 futures also rose by 0.31% in the overnight session, reporting 15257 points, showing an overall upward trend in Chinese assets.

3. Commodities: Spot silver increased by nearly 2% during the day, reporting $61.78 per ounce, setting a new historical high; international oil prices rose slightly, with WTI crude oil futures rising by 0.36% to $58.46 per barrel, and Brent crude oil futures' gains expanding to 1%, reporting $62.58 per barrel.

4. Cryptocurrency: Bitcoin prices briefly returned to $93,000, and Ethereum prices also rose to $3,400, with cryptocurrency concept stock BMNR rising over 4%. Although there was some divergence in the sector afterwards, the overall sentiment benefitted from the interest rate cut.