Doves Take the Wheel — Markets Get a Dose of Dovish Optimism

Stocks in the U.S. charged higher this holiday‑shortened week as interest rates slipped toward multi‑year lows. Investors grew increasingly confident that the Federal Reserve might begin cutting rates soon, a view sharpened by reports that Kevin Hassett — a well‑known ally of Donald Trump — is emerging as the frontrunner to replace Jerome Powell as Fed Chair in 2026. That “Hassett trade” has reignited appetite for long‑duration, rate‑sensitive equities as the market prices in a lower terminal rate and more aggressive policy easing next year. The impact was immediate: the S&P 500 notched its strongest weekly gain since mid‑May, up about 3.7 %, closing within 1 % of record highs. The small‑cap index (Small‑Cap 600) jumped nearly 5 %. Meanwhile, real‑estate stocks — among the hardest hit by high rates — led the rally, as investors piled back into beaten‑down property sectors and real‑estate names. #FedWatch #RateCutsAhead #StockMarketRally #RealEstateBoom #SlimScan #GrowthStocks #CANSLIM