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• Powell delivered a speech at the US bond market annual meeting, emphasizing regulatory cooperation and communication, drawing lessons from the "flash crash" in the bond market ten years ago.

At the New York Fed's 10th U.S. Treasury market conference held on Thursday Eastern Time, Fed Chairman Powell was unable to attend in person, but pre-recorded a video to deliver the opening speech for the meeting.

In his speech, Powell mentioned the opportunity presented by the U.S. Treasury Market Annual Meeting - nearly a decade after the rare liquidity 'flash crash' in the U.S. Treasury market, stating that the event had rung alarm bells leading to significant changes in the market structure. The impact of electronic trading on the market, the importance of cooperation and communication among various regulatory agencies were also highlighted.

• Federal Reserve Governor Powell: Fully supports the FOMC cutting interest rates by 50 basis points in September

Federal Reserve Governor Cook: Fully support the FOMC's decision to cut interest rates by 50 basis points in September. The rate cut reflects the (Federal Reserve's) ability to maintain confidence in the stable employment market. The (FOMC rate) policy path will depend on future data. The demand and supply of the US labor force is now becoming more balanced. Returning to balance means normalization after the post-Covid-19 period. Artificial intelligence (AI) may significantly increase productivity. AI has the potential to eliminate existing jobs and create new job opportunities.

• US Treasury Secretary Yellen expects housing costs to decrease, pushing towards achieving the 2% inflation target.

US Treasury Secretary Yellen stated that inflation is moving towards the Federal Reserve's 2% target. She hopes that with policymakers lowering interest rates, the job market will stabilize. On Thursday, when asked if she believed that US inflation is under sufficient control, Yellen said "yes". Yellen said she expects housing costs to decrease, driving the inflation rate to 2%. Yellen also stated that the US labor market now has "slightly increased slack." She said that with the Federal Reserve taking action on monetary policy, the employment situation is expected to stabilize.

• "Third in command of the Federal Reserve" officially announced: Establish a new institution to monitor reference interest rates.

New York Fed President Williams announced that the New York Fed will establish an institution composed of private market participants to monitor the use of interest rate benchmarks or reference rates in financial markets. The Libor incident provided two lessons: first, systemic risks in the global financial system can gradually accumulate over time, and second, solving this issue requires complex, expensive, and up to ten years of effort, therefore, history should not be repeated.

• usa mmf market fund size hit a new high of 6.42 trillion US dollars

Despite the Federal Reserve's rate-cutting cycle already underway, investors are still pouring a large amount of funds into the US money market funds, driving assets to record highs. Data released by the Investment Company Institute on Thursday showed that about $121 billion flowed into US money market funds for the week ending September 25. Total assets reached a record $6.42 trillion. At this time of strong demand, some fund managers - including Jerome Schneider, head of short-term investment portfolio management and financing at Pacific Investment Management Company - are suggesting it's time to withdraw from money market funds. With US policymakers starting to lower benchmark interest rates from 20-year highs, the debate around whether these funds will continue to be popular is heating up.

• Director of Monetary Policy at the People's Bank of China: Speeding up the issuance of documents on financial incremental policies.

Monetary Policy Director at the People's Bank of China, Zou Lan, stated that the People's Bank of China will implement the relevant arrangements such as 'lowering the deposit reserve ratio, implementing forceful rate cuts', and accelerate the issuance of documents on financial incremental policies. Based on a 0.5 percentage point reduction in the deposit reserve ratio, it will further lower it based on the market liquidity conditions during the year. Lowering the policy interest rate by 0.2 percentage points, continue to guide loan market quoted interest rates and deposit rates to simultaneously decrease, drive commercial banks to lower existing mortgage rates. Implement and execute various policy measures effectively to promote economic recovery and improvement.

• Goldman Sachs: The long-awaited recovery of the china stock market may finally be coming.

Scott Rubner, Managing Director and Strategy Specialist at Goldman Sachs Global Markets, stated on Thursday that the recent performance of the Chinese stock market has been strong, with the Nasdaq Golden Dragon Index surging 19% over the past four days. Once the US election is over, the Chinese stock market should become an important part of investors' investment plans. Rubner believes that the long-awaited recovery of the Chinese stock market may finally be arriving, and if so, investors should want to participate.

In a report to clients on Thursday, he wrote: 'I really think this time is different for China.' Rubner said: 'The resurging market has quickly become a popular trading target for November and December after the US election.' He was referring to the demand for call options expiring at the end of the year.

Gamestop's surge has dramatically narrowed, with the trading platform considering unplugging the internet of US retail investors.

• The three major US stock indexes collectively closed higher, with the S&P 500 Index hitting a new intraday high, and China concept stocks generally surged.

On Thursday Eastern Time, the three major indices closed higher collectively, with the S&P 500 index hitting a new intraday high and closing once again at a record high. By the close, the Dow Jones Industrial Average rose 0.62%, the S&P 500 index rose 0.40%, and the Nasdaq index rose 0.60%.

Large-cap technology stocks had mixed performance, with Apple up 0.51%, Microsoft down 0.19%, Nvidia up 0.43%, Google up 0.77%, Amazon down 0.71%, Meta down 0.08%, and Tesla down 1.09%. Chip stocks generally rose, with Micron Technology up 14.73%, ASML Holding up 4.19%, AMD up 3.38%, Qualcomm up 2.61%, and Intel up 1.61%.

With China once again introducing a series of significant favorable policies, popular China concept stocks soared across the board. The Nasdaq Golden Dragon Index rose 10.85%, marking the largest single-day increase since 2022. Alibaba rose 10.07%, JD.com rose 14.39%, PDD Holdings rose 13.57%, Xpeng rose 11.89%, Bilibili rose 15.44%, Baidu rose 9.09%, Tencent Music rose 8.78%, iQiyi rose 15.52%, TAL Education rose 23.56%, KE Holdings rose 20.43%, and New Oriental rose 14.16%.

• A month after being shorted by Hindenburg, Super Micro Computer is reportedly being investigated by the US Department of Justice.

According to media reports citing sources, the U.S. Department of Justice is investigating the AI server manufacturer Super Micro Computer for alleged accounting irregularities. Just a month ago, well-known short-selling firm Hindenburg Research announced a short position on the company citing undisclosed related party transactions and non-compliance with export controls.

Sources revealed that the investigation is still in its early stages. $Super Micro Computer (SMCI.US)$ Impacted by this news, Super Micro Computer's stock price fell nearly 17% at one point on Thursday, leading to multiple trading halts due to excessive decline. As of Thursday's close, Super Micro Computer was down 12.17%.

• Guo Mingxi: Meta's AR glasses Orion's actual production time may be later.

Renowned analyst Ming-Chi Kuo pointed out, $Meta Platforms (META.US)$ Internally, the product roadmap indicates that AR glasses Orion may enter mass production as early as 2027. However, due to the undecided EMS/NPI manufacturers and considering many technical issues, the actual production time is expected to be later. Before Orion goes into mass production, Meta may introduce a lower-spec version (such as using LCoS instead of Micro LED). Meta's strategy is to continuously test and gather market feedback to quickly improve products, rather than waiting for the product to be perfect before releasing it. Orion's positioning is to replace smartphones and tablets, with key selling points being the integration of AI and spatial computing.

• Costco's profit exceeded expectations in the last quarter, but revenue was disappointing, dropping over 1% after hours.

$Costco (COST.US)$ Fourth-quarter revenue growth exceeded expectations but slowed down, with the growth rate slowing from over 9% in the previous quarter to less than 1%. EPS growth slowed to 8.8%, still stronger than expected; same-store sales growth in the quarter slowed to 5.4%, foot traffic increased by 6.4%, but customer spending decreased by 0.9%. With the first membership fee increase in seven years starting this month, the renewal rate for US and Canada members in the fourth quarter was nearly 93%, and the impact of the fee increase remains to be seen. After the financial report was released, Costco fell over 1% after hours.

• China introduced favorable policies, leading to a general surge in luxury goods concept stocks, with LVMH rising by 11%.

周四，随着中国再次推出超预期的多项利好政策，海外市场情绪得到显著提振，奢侈品公司股价普遍大涨，投资者押注中国市场对奢侈品的需求将上升。

全球最大的奢侈品巨头路威酩轩集团（ $LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$ ）周四美股大涨11%， $Hermes International SA (HESAY.US)$ 涨10.15%， 开云集团（$KERING UNSPON ADR EA REPR 0.1 ORD EUR0.00 (PPRUY.US)$ ）涨10.40%， $Burberry Group plc Sponsored ADR (BURBY.US)$ Up 8.67%, $COMPAGNE FIN ADR (CFRUY.US)$ Up 8.47%.

• Wells Fargo & Co rose more than 5%, submitted an important review report to the Federal Reserve, seeking to lift the asset cap.

$Wells Fargo & Co (WFC.US)$ A third-party evaluation report on its risk and control reforms has been submitted to the Federal Reserve in the hope of lifting the asset cap imposed by regulatory agencies. The bank is currently operating under a $1.95 trillion asset cap, and cannot expand this scale until the regulatory agency believes it has addressed the issues stemming from the fraudulent account scandal dating back to 2016. Following the announcement, Wells Fargo & Co rose by over 5%.

Top 20 US stock transactions

BeiShui crazily bought China Mobile for nearly HKD 1.8 billion and sold Tencent for about HKD 200 million. On Monday (June 3rd), Southbound funds net purchased HKD 3.4 billion of Hong Kong stocks.

• Beishui continues to significantly increase its holdings in Alibaba by more than HK$5.8 billion, while selling CNOOC and China Mobile.

On September 26th (Thursday), the net inflow of funds from the north into Hong Kong stocks amounted to 5.993 billion Hong Kong dollars.

$BABA-W (09988.HK)$,$MEITUAN-W (03690.HK)$,$PING AN (02318.HK)$Received net buy orders of 5.86 billion Hong Kong dollars, 0.412 billion Hong Kong dollars, 0.348 billion Hong Kong dollars respectively;

$CNOOC (00883.HK)$,$CHINA MOBILE (00941.HK)$,$XIAOMI-W (01810.HK)$They were sold at a net amount of 1.099 billion Hong Kong dollars, 0.628 billion Hong Kong dollars, and 0.398 billion Hong Kong dollars respectively.

The company's overall sales volume in 2023 was 18,000 kiloliters, with a year-on-year increase of 28.10%, indicating significant growth. In terms of product structure, the operating income of products worth 10-30 billion yuan were 401/1288/60 million yuan respectively.

Keyword: US Core PCE Price Index.

In terms of financial data, the US Core PCE Price Index for August will be released; the US Personal Income Month-on-Month Rate for August, the final value of the University of Michigan Consumer Sentiment Index for September, the final value of the one-year inflation rate expectation for September, the Industrial Confidence Index for September in the Eurozone, and the Economic Sentiment Index for September in the Eurozone will be announced successively.

In terms of financial events, the 2026 FOMC voting member, Minneapolis Fed President Kashkari, will have a fireside chat with Fed Governor Brainard; the 2025 FOMC voting member, Boston Fed President Collins, and Fed Governor Quarles will give speeches.

Futubull Morning News:

The rise in the stock market can make people overly optimistic, and this optimism often masks underlying risks. During market booms, we should carefully study the fundamentals of companies, rather than be dazzled by short-term price fluctuations.

- [USA] Peter Lynch

Editor/Rocky