The Federal Reserve's December interest rate meeting is approaching. Can the hot trend in the US stock market continue?

The U.S. non-farm payrolls rebounded, but does the rising unemployment rate solidify the possibility of the Federal Reserve continuing to cut interest rates in December? So far in 2024, the S&P 500 Index has risen by about 27%, on track to achieve its best annual performance since 2019. After a strong rise, is there a bubble risk in the U.S. stock market? Should investors make appropriate defensive allocations? DBS Bank investment strategy analyst Deng Zhijian believes that the main reason for the rise in unemployment data is the decrease in participation rate, and there is no need to cut interest rates to stimulate employment. Sixty percent of U.S. companies have seen both revenue and profit growth, and there is no obvious bubble in the U.S. stock market. The probability of a soft landing for the U.S. economy is high, and interest rate cuts will not benefit risk assets; defensive assets must be increased