纳斯达克生物科技指数收涨1.09%，费城半导体指数收涨4.27%，费城证交所KBW银行指数收涨2.85%，道琼斯KBW地区银行指数收涨2.64%。U.S. jobless claims data strengthen the economy.But after the bursting of the internet bubble and the Fed's rate cut in 2001, the ROI dropped by more than 10%.Expectations: The Dow first broke through 42,000 points, the S&P closed above 5,700 points for the first time, and the Nasdaq rose 3% at one point. The chip index rose 5.7% at one point, the bank index rose nearly 3%, and the China concept index rose over 4%. Meta rose nearly 4% to a new high, Tesla and nio inc rose over 7%, Nvidia rose 5.5% at one point, Alibaba rose 4.8%, and FedEx fell 11% after the market closed. Long-term U.S. bond yields rose, offshore RMB rose 348 points to approach 7.06 yuan to the highest in 16 months, U.S. oil turned higher this year, and the yen fell.
The day after the Federal Reserve cut interest rates by 50 basis points, U.S. stocks rose across the board. At the daily high, the Nasdaq rose over 3.1%, the Dow rose nearly 658 points, and the S&P rose nearly 2.1%. The S&P 500 index hit a new record high for the first time since July, and the Dow set a new intraday high. Small-cap stocks rose for the seventh consecutive day. Tech stocks performed strongly, with chip stocks such as AMD, ASML, and Nvidia rising at least 4%, driving the chip index up 4.27%, outperforming the U.S. stock market: China concept stocks were eye-catching.
The three major U.S. indices: The S&P 500 index closed up 95.38 points, or 1.70%, at 5713.64. The Dow, closely related to the economic cycle, closed up 522.09 points, or 1.26%, at 42,025.19. The Nasdaq, dominated by tech stocks, closed up 440.68 points, or 2.51%, at 18,013.98. The Nasdaq 100 was up 2.56%, and the Nasdaq Technology Market Cap Weighted Index (NDXTMC) measuring the performance of the Nasdaq 100 tech constituents closed up 3.18%. The more economically sensitiveE-mini Russell 2000 Index Up 2.10%. The VIX panic index fell 10.42% to 16.33.
The Nasdaq Biotechnology Index rose 1.09%, the Philadelphia Semiconductor Index rose 4.27%, the Philadelphia Stock Exchange KBW Bank Index rose 2.85%, and the Dow Jones KBW Regional Bank Index rose 2.64%.
Most US stock industry ETFs closed higher. The semiconductor ETF rose more than 4%, technology industry ETF, global technology stock ETF, regional bank ETF, and internet stock index ETF all rose nearly 3%, banking and consumer discretionary ETFs rose more than 2%, biotech index ETF, energy industry ETF, and financial industry ETF all rose at least 1%. However, utilities ETF and consumer staples ETF both fell at least 0.5%.
The 11 sectors of the S&P 500 index generally rose. The technology sector rose 3.08%, consumer discretionary sector rose 2.2%, telecom sector rose 1.88% and ranked third, energy sector rose 1.22%, financial sector rose 1.17% and had the second lowest increase, while real estate, utilities, and consumer staples sectors fell by at most 0.58%.
The 'magnificent 7' technology stocks collectively rose. Tesla rose 7.36%, Nvidia rose 3.97%, 'metaverse' Meta rose 3.93%. Apple rose 3.71%, the European Union is reportedly warning Apple to open the iPhone operating system or face hefty fines. Amazon rose 1.85%, Microsoft rose 1.83%, and Google Class A rose 1.46%.
Chip stocks rose across the board. The Philadelphia Semiconductor Index rose 4.27%. The industry ETF SOXX rose 4.26%; Nvidia 2x long ETF rose 8.09%. Intel rose 1.78%, Micron Technology rose 2.18%, ON Semiconductor rose 3.84%, Qualcomm rose 3.34%, KLA Corp rose 5.66%, ASML Holding ADR rose 5.12%, AMD rose 5.7%, Marvell Technology rose 4.65%, Broadcom rose 3.9%, Taiwan Semiconductor's US stock rose 5.34%, and Arm Holdings rose 1.61%.
AI concept stocks generally rose. Oracle rose 1.86%, Serve Robotics rose 4.95%, BullFrog AI rose 2.15%, Super Micro Computer rose 0.07%, Snowflake rose 2.92%, CrowdStrike rose 3.84%, Palantir rose 1.24%, Dell Technologies rose 1.53%, C3.ai rose 1.93%. BigBear.ai rose 1.28%, SoundHound AI, an AI voice company held by Nvidia, rose 3.3%.
China concept stocks outperformed the major US stock indexes. The Nasdaq Golden Dragon China Index rose 4.15%. In the ETFs, the China Technology Index ETF (CQQQ) rose 3.42%. The China Internet Index ETF (KWEB) rose 4.47%.
Among popular China concept stocks, GDS Holdings rose 11.51%, trip.com rose 1.58%, XPeng rose 8.68%, JiKe rose 8.51%, Li Auto rose 2.46%, Mengniu Dairy ADR rose 7.63%, Nio Inc. rose 7.57%, JD.com rose 6.76%, Bilibili rose 6.41%, Meituan ADR rose 5.31%, Alibaba rose 4.82%, Vipshop rose 4.05%, Netease rose 3.6%, Tencent ADR rose 3.45%, Baidu rose 2.78%.
Other key stocks: (1) Nike appointed Elliott Hill as CEO to replace John Donahoe, causing Nike's post-market trading to rise more than 8%. (2) FedEx began the fiscal year with a sharp decline in profits of over 20% and a downward revision of full-year guidance, causing a sharp drop of more than 10% in post-market trading.
The sharp interest rate cut by the Federal Reserve and renewed tensions in Lebanon drove the US oil price up nearly 1.5% to its highest level since early September:
US Oil: WTI October crude oil futures rose $1.04, an increase of nearly 1.47%, to $71.95 per barrel. US oil dropped nearly 1.1% to just under $70 during Asia trading, and then continued to rise. At midday in the US stock market, it soared more than 2.2% to just under $72.5.
Brent Oil: Brent November crude oil futures rose $1.23, an increase of approximately 1.67%, to $74.88 per barrel. Brent oil fell just over 1% to below $73 during Asia trading, and then continued to rise. At midday in the US stock market, it soared nearly 2.1% to break through the $75 mark.
On the news front, according to China News, the explosion of communication equipment in Lebanon has caused 37 deaths and nearly 3,000 injuries. According to CCTV News and Xinhua News Agency, the leader of Hezbollah, Hassan Nasrallah, said, "Israel's attack on the communication equipment explosion violates all legal restrictions and red lines." Hezbollah has set up multiple investigative committees internally, and they will not stop military operations until the Israel-Palestine conflict ceases. Israel has detonated thousands of communication devices in an attempt to kill thousands of Lebanese people, crossing all red lines and tantamount to a declaration of war. In addition, the Israeli military has struck hundreds of Hezbollah rocket launch sites.
Analysis suggests that the conflict between Israel and Hezbollah may prompt OPEC member Iran to intervene directly, increasing the risk of a disruption in Middle East oil supply. Citigroup Bank expects the oil market to face a daily shortage of 0.4 million barrels in the fourth quarter, which may temporarily maintain Brent crude prices at $70-75 per barrel. The shortage is due to reduced supply from Libya, Russia's increased compliance with the OPEC+ agreement, and the OPEC+ delay in production increases. Nevertheless, Citigroup still expects Brent crude prices to drop to $60 by 2025, even if OPEC+ maintains production cuts throughout the year, the global market may still face a daily surplus of 1 million barrels.
Natural Gas: U.S. natural gas futures rose 2.80% in October, reaching $2.3480 per million British thermal units.
The substantial interest rate cut by the Federal Reserve has led to a general rise in gold, silver, and copper prices, and the weakening of the U.S. dollar helped boost the spot price of gold by about 1.1%, approaching historical highs.
Gold: COMEX December gold futures rose 0.5% at the close, reaching $2611.5 per ounce. Spot gold fell by over 0.3% to test $2550 in early Asian trading, and then continued to rise. In mid-European trading, it rose by nearly 1.4%, approaching the $2600 mark, close to the historical high of $2600.16 set after the Federal Reserve announced a larger-than-expected 50 basis point interest rate cut on Wednesday. At the end of the trading day, spot gold rose by 1.09%, reaching $2586.74 per ounce.
Silver: COMEX December silver futures rose 1.38% at the close, reaching $31.110 per ounce. Spot silver fell by nearly 0.6% in early Asian trading, dropping below the $30 mark, and then continued to rise. In mid-European trading, it rose by over 4%, breaking through the $31 mark. By the end of trading, it pulled back slightly to close at $30.7875 per ounce, up by 2.23%.
Analysis suggests that Ebkarian, Chief Operation Officer of Allegiance Gold, indicated that due to the U.S. fiscal and trade deficits, the market expects a larger interest rate cut, which will further weaken the value of the U.S. dollar. Geopolitical risks, deficits, a low-yield environment, and a soft dollar have collectively driven up the price of gold. Loose monetary policies from global banks, strong central bank purchases, and geopolitical concerns have repeatedly propelled gold to new highs. UBS expects the upward trend in gold prices to continue, with a target of reaching $2700 per ounce by mid-2025, and anticipates an accelerated growth in demand for gold ETFs in the coming months.
Industrial base metals in London generally rose. The economic barometer "Copper Doctor" rose 1.21% to $9515 per ton. London zinc rose by over 1.52%. London aluminum rose by $3. London nickel rose by $100. London tin rose by over 0.72%. London lead rose by over 1.81%.
COMEX copper futures rose 1.15% to $4.3485 per pound.
Editor / jayden