Market Volatility Anticipated Amid Economic Data Releases and Index Rebalance

According to BlockBeats, the market faces significant risks this week due to delayed economic data releases and a comprehensive index rebalance, potentially leading to market fluctuations. The United States is set to release the November employment report and crucial inflation figures, which could either support or challenge the Federal Reserve's interest rate outlook for the coming year. Last week, Federal Reserve officials implemented a third consecutive rate cut and hinted at the possibility of another rate cut next year as rates approach a neutral level. Additionally, the U.S. will unveil the November Consumer Price Index (CPI) report this week. Economists surveyed by the Wall Street Journal anticipate a year-over-year increase of 3.1% in the index. Farzin Azarm, Managing Director of Equity Trading at Mizuho Securities USA, highlighted this week's events as one of the year's largest liquidation occurrences. Specifically, the quarterly index rebalance for the S&P 500 and Nasdaq 100 will take place on Friday, during which index providers will adjust the components and weights of their benchmark indices to ensure they continue to accurately represent the tracked market. Last Friday, U.S. stock markets experienced a sharp decline. According to FactSet data, the S&P 500 fell by 0.6%, the Nasdaq Composite dropped by 1.6%, while the Dow Jones Industrial Average rose by 1.1%.