Blessings don’t come in pairs, and misfortunes don’t come alone. If we look purely from the perspective of the U.S. economy, there’s another piece of data that isn’t great. Tonight, GrayChristmasInc released the Challenger job cuts report, showing 153,074 layoffs, while the market had only expected 54,064. The actual result is an additional 100,000 layoffs. Moreover, according to employers’ reports, the layoffs are mainly due to cost-cutting and AI replacing human labor. Remember when I told my buddies about the key factor the U.S. uses to judge whether the economy is entering a recession? It’s the unemployment rate. Recently, there’s been a wave of mass layoffs in the U.S., and labor market data is likely to look pretty ugly. But looking at it from another angle, the Fed’s main reason for cutting interest rates is also tied to labor market data. Powell himself has said that if the labor market continues to deteriorate, they’ll need to ease pressure through rate cuts. In plain terms, the worse the labor market gets, the more likely the Fed will consider rate cuts. So, from this perspective, the probability of another rate cut in December should be higher. If the market realizes it can turn bad news into good news, we might see a rebound. This post is sponsored by @Bitget ｜ Save the most on fees, grab the best rewards, and become a VIP at Bitget.