After the Federal Reserve cuts interest rates, next week's economic data may trigger a re-pricing of interest rates.

【BlockBeats】Recently, the past week has been seen by many as a turning point in the US macro narrative. Charles Schwab’s Chief Investment Strategist Charu Chanana pointed out that employment and inflation data will be released within a fairly narrow time window, likely triggering a rapid reassessment of interest rates by the market.

The current situation is somewhat contradictory. The Federal Reserve just announced a rate cut last week and hinted at another cut in 2026. However, traders’ expectations are more aggressive—they generally believe there will be at least two rate cuts next year.

The key question is: if the upcoming data performs just okay or slightly weaker than expected, can the soft landing story still be maintained? But this might not be enough to ignite a true risk-on environment. What we should really be wary of is an unexpected hawkish stance. Imagine if inflation or employment data come in hotter than expected, causing yields to spike, and risk assets—especially long-term growth stocks—would be the first to feel the impact.