Analysts: The Fed's dovish stance is beneficial to risk assets.

Following Federal Reserve Chairman Jerome Powell's expressions of concern about the labor market yesterday, Wall Street is increasingly betting that the Fed will cut interest rates twice or more in 2026. Scott Helfstein of Global X stated, "A dovish Fed should generally benefit risk assets, especially growth and cyclical stocks." He also noted, "As borrowing rates fall, sectors related to the corporate investment cycle may also be well-positioned." He added that the attractiveness of short-term bonds and gold may decline slightly. "If short-term rates fall, long-term bonds may gain more attention." (Jinshi)