The New York Stock Exchange is set to open without any major trend on Tuesday morning, taking a breather after another flurry of record highs the previous day on optimism about the economic situation.

Half an hour before the start of trading, futures contracts on the main indices are hovering around their equilibrium points, heralding an unchanged or almost unchanged start to the session.

While Wall Street set a series of new all-time highs last night, it was the S&P 500's close above the symbolic 6,000-point mark that made the biggest impression.

With a gain of over 25% since January 1, the S&P index is now posting its biggest annual increase since 1995, and for the first time since 1998 is heading for a second consecutive year of gains in excess of 20%.

Another symbolic milestone was reached on the other side of the Atlantic: last night, the Dow Jones broke through the 44,000-point barrier, a level never before reached on the stock market.000 points, a level never before reached.

The problem is that this climate of general euphoria - which has propelled Wall Street since Donald Trump's victory in the presidential election on November 5 - has also led to a revision of rate cut expectations.

Given the optimism surrounding the economy, the estimated probability of a Fed rate cut of 25 basis points on December 18 has thus fallen back to around 65%, according to CME's FedWatch, compared with around 88% a month ago.

The Trump Trade also seems to be running out of steam as we wait for the next president to unveil his plans on budgetary and fiscal matters, the consequences of which are still considered uncertain by the markets.

As a second Trump administration takes shape and implements its policies, investors should brace themselves for turbulence, in the US as elsewhere," warns Michael Strobaek, Lombard Odier's Chief Investment Officer.

These trends should not be underestimated, and we must beware of excessive optimism", he continues.

"The time has come to be vigilant and to proactively manage portfolios in order to cope with market volatility", advises the analyst.

While the prospect of the arrival of a new administration has given Wall Street a boost, against a backdrop of hopes for deregulation and tax cuts, the surge in equities has also been accompanied by a rise in the dollar and clear pressure on long-term rates, factors which are not very favorable to US economic activity.

Pending inflation figures, which will be closely watched tomorrow, there are no major indicators on today's agenda.

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