Market Ends Year with Mixed Signals Amid Fed's Policy and AI Investment Concerns

According to BlockBeats, QCP Capital has highlighted a fragile balance of confidence and caution as the year concludes. The Federal Reserve's dovish rate cuts are mixed with hawkish tendencies, signaling support for the labor market while maintaining a focus on inflation. The dot plot suggests a flattening rate path, with the market currently pricing in approximately two to three rate cuts next year. The stock market remains a crucial macroeconomic factor, with ongoing investments in artificial intelligence infrastructure. However, the monetization process is lagging. If revenue growth fails to keep pace with investments, risks could spread from the AI sector, potentially leading to a broader stock market reevaluation in 2026. The cryptocurrency market continues to face pressure as MSCI reviews the eligibility of digital asset management companies for index inclusion. This could trigger passive fund outflows of up to $2.8 billion.