Why investors are betting on a December Fed rate cut

分组1 - The Federal Reserve is expected to cut interest rates in December, which could significantly impact small-cap companies that are more sensitive to interest rate changes compared to large-cap peers [2][21][37] - Concerns about the AI sector's performance are prevalent, with the market looking for signs of productivity gains from AI investments, particularly from companies like Alphabet [3][11][12] - Alphabet has shown strong performance recently, with a month-to-date increase of over 20%, indicating a potential shift in market leadership towards companies demonstrating productivity improvements from AI [7][9][10] 分组2 - The issuance of nearly $90 billion in investment-grade bonds by AI hyperscalers since September indicates a growing trend where AI is becoming a significant factor in the rates market, potentially crowding out treasury market [31][34] - The AI sector is experiencing record interest and investment, particularly in data centers and technology, while other sectors of the economy are struggling [50][51] - The divergence in economic performance between the booming AI sector and the rest of the economy highlights the challenges in job creation and hiring across different industries [52][53]