Markets are catching some momentum today. Gold prices are climbing while stocks are pushing higher—and the driver behind both moves is pretty straightforward: traders are scaling back expectations for interest rate cuts.

When rate-cut odds drop, it actually creates an interesting dynamic across asset classes. Equities tend to react positively when the data surprises to the upside because it signals economic strength. Meanwhile, precious metals like gold sometimes see selling pressure when rates look stickier for longer, though the broader market optimism can override that.

This kind of rotation tells you something about market sentiment right now. Investors are digesting what could be "good news"—whether that's stronger economic data, inflation holding steadier, or just a reassessment of the Fed's path. Whatever the catalyst, it's shifting the calculus on when we might actually see rate relief.

For those tracking cross-asset performance, days like this are worth noting. The interplay between macro expectations, bond yields, and equity/commodity prices gives you a window into how the broader financial system is repricing risk.