On September 17, the three major stock indexes in the USA opened higher collectively, as of press time, $Nasdaq Composite Index (.IXIC.US)$ up 0.83%, $S&P 500 Index (.SPX.US)$ Rise by 0.55%,$Dow Jones Industrial Average (.DJI.US)$ Rise by 0.43%. Among them, S&P and Dow Jones industrial average continued to hit new highs.

On the news front, the "last important data before the Fed decision," namely, the 0.1% increase in retail sales in the US in August, better than expected, boosted the overall rise of US stocks.

It is worth noting that Chinese assets performed well tonight, $NASDAQ Golden Dragon China (.HXC.US)$ In terms of individual stocks, Dada Nexus has risen more than 13%, while Li Auto has risen nearly 9%.

On September 17, Hong Kong stock, the first to trade, also showed strong performance, with the Hang Seng Index up 1.37% and the Hang Seng Tech Index up 1.12% at the close of the day.

China's assets have surged.

After the opening of the US stock market on September 17th, Chinese concept stocks performed strongly. As of the time of writing, the Nasdaq Golden Dragon China Index has risen by 2.67%.

$Dada Nexus (DADA.US)$ Dada Nexus has seen a rise of more than 16%. In terms of news, Dada Nexus previously announced that JD.com has bought 87.4813 million common shares and 1.875 million American Depositary Shares of Dada Nexus held by Walmart's subsidiary. With this, JD.com has acquired all of Walmart's shares in Dada Nexus and increased its stake to 63.2%.

$Li Auto (LI.US)$ Rise nearly 9%, $XPeng (XPEV.US)$ Rising more than 5%, $NIO Inc (NIO.US)$ Rising more than 4%. On the news front, according to the statistics from the China Automobile Dealers Association, the retail sales volume of new energy vehicles in August increased by 43.2% year-on-year, accelerating by 6.3 percentage points compared to July, and the penetration rate of new energy vehicles reached 53.9%, surpassing 50% for two consecutive months.

In addition, $GDS Holdings (GDS.US)$ $Niu Technologies (NIU.US)$Please use your Futubull account to access the feature.$iQIYI (IQ.US)$ up more than 7%.

On September 17th, the Hong Kong stock market closed strong, with the Hang Seng Index up 1.37% and the Hang Seng Tech Index up 1.12%.

The market is waiting for the Fed's interest rate decision.

At 2:00 am Beijing time on September 19th, the Fed will announce its latest interest rate decision. The market generally predicts that the Fed will make an interest rate cut at this meeting, and the key question is whether it will be a 25 basis point cut or a 50 basis point cut.

In addition, Federal Reserve Chairman Powell will deliver a speech at the press conference after the interest rate meeting at 2:30 a.m. Beijing time on September 19. Market participants believe that his speeches often provide more background and details, especially regarding the considerations behind the policies.

Haitong Securities research report believes that the overseas environment for this rate cut by the Federal Reserve is more complex, similar to the situation in 1995, with upcoming U.S. elections and a decrease in coordination of overseas monetary policies. In the past, the economic and monetary policy cycles of China and the United States were more consistent during rate cuts by the Federal Reserve, but this time they are out of sync. It is worth paying attention to any bullish signals that may drive the improvement of the fundamentals in the future. Haitong Securities also stated that preemptive rate cuts by the Federal Reserve may help improve liquidity in the A-share market, but in the medium to long term, fundamental repairs still need to be validated. In the short term, focus on the financial and consumer sectors, while in the medium term, gradually favor the technology sector.

Caifutong Securities' strategy team believes that with the upcoming Federal Reserve meeting, the probability of a rate cut is higher, and short-term comprehensive price increases of assets may be expected, with greater elasticity in growth and gold expectations. Caifutong Securities stated that the rate cuts by the Federal Reserve and the weakening of the U.S. dollar have opened up space for domestic monetary policy. The market needs more proactive policies to achieve the annual economic goals. The central bank has also stated its intention to "further reduce the cost of enterprise financing and resident credit" and "support the dynamic balance of total supply and demand at a higher level."

In terms of allocation, Caifutong Securities believes that the macroeconomic path of the future will become more clear within 3-6 months after the rate cut: if a soft landing is confirmed, the market may revise the rate cut path to be more conservative, with U.S. bond rates rising, the U.S. dollar strengthening, U.S. stocks strengthening, gold weakening, and commodities like copper, aluminum, and oil strengthening. It is recommended to allocate global cyclical assets, including non-ferrous metals, home appliances, construction machinery, and the U.S. real estate chain in the A-share market. If a hard landing is confirmed, the global market will enter a defensive stance, and it is recommended to buy various types of bond assets, including gold, U.S. bonds, Chinese government bonds, undervalued assets in the A-share market, and high dividend assets.

Editor/Somer