Core Viewpoint - The recent surge in the U.S. stock market is primarily driven by expectations of interest rate cuts by the Federal Reserve, with over 80% of market participants anticipating a 25 basis point cut in December, marking the third consecutive cut since September [3][4]. Group 1: Market Performance - All three major U.S. stock indices rose over 3% this week, with the Dow Jones and S&P 500 maintaining a seven-month upward trend [1]. - The Nasdaq experienced a nearly 5% increase this week, although it ended November down 1.5%, breaking a previous seven-month winning streak [4]. Group 2: Factors Influencing Market Trends - The market's recent performance is attributed to the return of "risk appetite" among investors, encouraged by the Fed's potential interest rate cuts [3]. - The decline in AI stocks, which previously led the market, has caused some investors to reassess valuations, leading to a temporary withdrawal of funds from the Nasdaq [4]. Group 3: Investment Strategy - Long-term investors are advised to avoid chasing short-term market trends and to be cautious with high-valuation AI stocks, waiting for corrections to reasonable levels before considering investments [4]. - Sectors benefiting from interest rate cuts and demonstrating stable performance should be monitored for potential investment opportunities [4].