On the evening of the 25th, Beijing time, the US stock market opened basically flat on Wednesday. After the Fed began to lower the cycle, the economic situation in the United States is becoming a bigger focus for investors. Despite the significant rate cut by the Fed last week boosting market sentiment, concerns about economic slowdown still exist.
On the evening of September 25th, Beijing time, the three major indices opened mixed, with slight fluctuations at the opening. The Dow Jones Industrial Average and the S&P 500 Index once again touched historical new highs at the opening. As of the time of writing,$Dow Jones Industrial Average (.DJI.US)$down 0.1%, $Nasdaq Composite Index (.IXIC.US)$ up 0.09%, $S&P 500 Index (.SPX.US)$ up 0.04%.
Lauren Goodwin, Chief Market Strategist at New York Life Investment Company, said: "I am one of the buyers in this rebound, until the number of unemployment benefits begins to rise, corporate profits begin to decline, really until economic growth becomes an issue. I believe that before that, we will see a very unstable market as it will be influenced by economic growth and slowdown."
David Kostin, Chief U.S. Stock Strategist at Goldman Sachs, stated that once the outcome of the U.S. presidential election is determined, the path for U.S. stocks to continue rising is clear.
He expects the S&P 500 index to trade around 6000 points in a year. This forecast implies an increase of about 5% from Tuesday's closing level, while the index has already risen by about 20% so far this year.
However, David Kostin also indicated that as the U.S. presidential election enters its final stage, investors may have to experience some market movements in the coming weeks. He mentioned that historically, this is a period of increasing volatility and declining stock prices.
After the Federal Reserve began to reduce the cycle, the economic condition of the United States is becoming a bigger concern for investors.
Although the significant rate cut by the Federal Reserve last week boosted market sentiment, concerns about economic slowdown still exist.
Data released by the World Large Enterprises Federation on Tuesday shows that the U.S. consumer confidence index in September experienced the largest decline in over three years, indicating that the slowing labor market and the continuous rise in living costs are depressing consumer confidence, making the indicator even lower than the level before the outbreak of the COVID-19 pandemic in the United States.
Chief Economist at High Frequency Economics, Carl Weinberg, said: "Views on employment opportunities have significantly deteriorated. This will also send warning signals to the financial markets about the economic conditions."
Currently, the swap traders have increased their bets by more than three-quarters of a percentage point on the Fed cutting rates before the end of the year, indicating that there will be at least one more significant rate cut after the data is released.
According to the FedWatch tool from the CME Group, market expectations for another 50 basis point rate cut by the Fed at the November meeting have increased from over 53% a day ago to over 60%.
Key sectors & stocks
Inconsistent movements for growth tech stocks, with Nvidia rising over 2%, Meta up over 1%, AMD and Micron Technology rising nearly 1%; Tesla and Apple slightly down.
Most of the China concept stocks are declining, with KE Holdings dropping over 6%, Bilibili and Nio Inc. falling nearly 6%, jd.com and Li Auto Inc. falling nearly 4%, Alibaba dropping over 2%, PDD Holdings falling nearly 2%.
$NVIDIA (NVDA.US)$ Continuing rise over 2%, the stock closed nearly 4% higher yesterday. Huang Renxun completed the Intel shareholding reduction plan early, cashing out over $0.7 billion.
$Intel (INTC.US)$ Once up nearly 2%, now up 1.42%; the company has launched a new generation of AI chips Xeon 6 and Gaudi 3, challenging Nvidia's dominant position.
$MINISO (MNSO.US)$ Rising over 3%, hong kong stocks$MNSO (09896.HK)$ Today's significant close up 8%.
$SAP SE (SAP.US)$ Falling nearly 3%, the US regulatory agency is reportedly investigating potential price manipulation by technology companies SAP SE and CARAHSOFT.
Editor / jayden
