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Fed cuts interest rates by 25 basis points! Fed lowers interest rates for the second consecutive time.
The Fed announced a 25 basis point cut in the benchmark interest rate, lowering the federal funds rate target range from 4.75%-5% to 4.5%-4.75%, with a rate cut in line with mainstream market expectations.
Powell said the fight against inflation is not over, with core inflation still somewhat high, the job market continuing to cool very slowly, the Fed will continue to cut rates, but if inflation cools without halting and the economy remains strong, rate cuts can be slower; short-term US elections have no impact on monetary policy, future fiscal policy impacts will be considered, US deficits and fiscal policy are economic constraints.
USA inflation concerns resurface! Labor costs unexpectedly strengthen in the third quarter.
In the third quarter, the initial value of non-farm unit labor costs in the usa increased by an annualized rate of 1.9%, far exceeding the expected 1%. The value for the previous quarter was significantly revised upward. The latest non-farm unit labor costs, combined with a series of other strong economic data in the recent period, may pose a risk to inflation in the United States, leading the Federal Reserve to be more cautious in its interest rate cuts in the coming months.
Trump triggers ETF frenzy, single-day inflows into risk asset class ETFs are 16 times the average.
Trump's election as the next US president sparked a frenzy in US stock ETFs, with investors heavily buying into risk asset class ETFs. On Wednesday, the US stock ETF saw a net inflow of approximately $18 billion, nearly 16 times the average daily inflow in 2024. Among them, small-cap stock ETFs saw an inflow of $3.9 billion, reaching a record high since data recording began in 2007.
Foreign institutions believe that now is a good time to allocate assets in China.
Morgan Stanley Fund Management (China) Co., Ltd. General Manager and Chief Investment Officer Zhou Wentao stated that the Chinese asset management industry is vast, with unlimited potential, and holds huge development opportunities. Florian Neto, Managing Director and Head of Investment for Asia at Eastspring Investments, expressed that although the Chinese market is a tactical allocation market, focusing too much on tactical allocation may cause one to miss out on the upward trend. In the future, the Chinese market is expected to gradually reduce volatility. From the perspective of future profit forecasts, Chinese assets are still growing continuously, making it currently a very good allocation opportunity.
Trump's win, along with the Fed's interest rate cut, ignited the cryptocurrency market! Bitcoin once approached $77,000.
With the expected 25 basis point interest rate cut by the Fed, the financial markets continued their upbeat performance. Bitcoin surged to a high of $76,990, hitting a historic high and approaching the $77,000 mark.
Gamestop's surge has dramatically narrowed, with the trading platform considering unplugging the internet of US retail investors.
S&P, Nasdaq hit historic highs again, Chinese assets strong and rising.
Overnight, the US stock market's three major indexes collectively rose, with the S&P and Nasdaq hitting historic highs. This marks the 49th time this year that the S&P has set a new record high at the close. It is one step away from the significant 6,000-point milestone. The Nasdaq index has surpassed the 19,000-point mark for the first time.
US tech giants collectively rallied, with Nvidia and Amazon hitting new all-time highs again. Specifically, Meta rose by 3.44%, Tesla by 2.90%, Google-A by 2.40%, Nvidia by 2.25%, Apple by 2.14%, Microsoft by 1.25%, and Amazon by 1.43%.
Chinese concept stocks performed strongly on Thursday, with the Nasdaq Golden Dragon Index rising by 3.5%. Xpeng rose by 15.61%, Bilibili by 8.89%, JD.com by 6.62%, Nio Inc by 6.20%, KE Holdings by 4.49%, PDD Holdings by 4.40%, and Alibaba by 3.53%.
Chinese asset ETFs also performed very strongly. For example, the 3x long FTSE China ETF (YINN) rose by 16.19% on Thursday, the 2x long HS300 ETF (CHAU) rose by 11.22%, the China SME GEM ETF (CNXT) rose by 7.78%, and the China Technology ETF (CQQQ) rose by 6.05%.
Nvidia's stock price hit a new high, with a total market value exceeding $3.65 trillion, reaffirming a 'buy' rating by Goldman Sachs.
$NVIDIA (NVDA.US)$ With the stock price rising by over 2%, hitting a new high with a total market value exceeding $3.65 trillion. On the news front, Goldman Sachs released a report reiterating a 'buy' rating on Nvidia and also included it in the 'conviction buy' list. Although the bank expects the company's breakthrough quarter to be the first fiscal quarter disclosed in April next year, the progress of Blackwell and improvements in supply conditions are anticipated to bring significant positive adjustments to earnings per share. Goldman Sachs forecasts non-GAAP earnings per share for the company in fiscal years 2025 and 2026 (excluding stock-based incentives) as $4.63 and $5.54 respectively, exceeding market expectations by 14%. The bank has set Nvidia's target price at $150, believing that the AI infrastructure supply has yet to catch up with demand.
Demand for speculation in the usa presidential election has receded, leading to a decline in media and technology stock prices for Trump.
$Trump Media & Technology (DJT.US)$ The stock price fell to a near two-week low on Thursday, as the bet on Trump's victory lost speculative momentum a day after his win. Strategists stated that the company's valuation has deviated from fundamental factors. On the election day, the company announced its quarterly report ending in September, with a net loss of $19.2 million and revenue of $1 million.
lyft inc surged more than 22%, with third-quarter revenue and fourth-quarter performance guidance both exceeding expectations.
American online car-hailing platform $Lyft Inc (LYFT.US)$Surging more than 22%, on the news front, lyft inc announced its third-quarter performance, with revenue of 1.52 billion US dollars, a year-on-year increase of 31.5%, higher than the market's expected 1.44 billion US dollars; adjusted loss per share of 0.03 US dollars, slightly better than the market's expected loss per share of 0.04 US dollars. In addition, lyft inc released a positive performance guidance, expecting total fourth-quarter orders to range between 4.28 billion and 4.35 billion US dollars, and adjusted EBITDA to range between 0.1 billion and 0.105 billion US dollars, both better than the market's expected 4.23 billion US dollars and 85.1 million US dollars.
xpeng surged more than 15%, with pre-sale orders for the P7+ reaching a record high.
$XPeng (XPEV.US)$ Surging more than 15%, on the news front, pre-sale orders for xpeng P7+ have hit a new record high, breaking the record set by xpeng MONA on October 31. Morgan Stanley expressed anticipation for xpeng to showcase its various technological reserves starting from this year's AI Day, and to continuously expand the production capacity of both vehicle and non-vehicle product lines. In the fierce competition of intelligent electric vehicles, xpeng continues to enhance its competitive advantage.
After hours, Lucid briefly rose more than 12%, exceeding expectations for third-quarter vehicle deliveries
$Lucid Group (LCID.US)$ The US stock market surged more than 12% after hours. Lucid reported a loss of $0.41 per share in the third quarter. Adjusted loss per share in the third quarter was $0.28, below analyst expectations of $0.31. Third-quarter revenue was $0.2 billion, slightly higher than analysts' forecast of $0.1963 billion. Adjusted EBITDA loss in the third quarter was $0.6131 billion, better than the expected loss of $0.6238 billion by analysts. 2781 vehicles were delivered in the third quarter, higher than the analyst's expectation of 2334 vehicles. The annual production volume is expected to be maintained around 9000 vehicles. Gravity is scheduled to start production by the end of 2024 as planned. The plan is to have the Gravity model cruising in late 2025.
Anthropic teams up with Palantir and AWS to sell AI to defense customers.
AI startup Anthropic announced on Thursday that it is partnering with intelligence analysis company $Palantir (PLTR.US)$ Nvidia. $Amazon (AMZN.US)$ cloud service (AWS) to provide Anthropic's Claude series AI models to US intelligence and defense agencies. This collaboration aims to integrate Claude into the Palantir platform and utilize AWS's hosting services.
Taiwan Semiconductor and GlobalFoundries have completed negotiations on chip funding of billions of dollars.
According to media reports, $Taiwan Semiconductor (TSM.US)$ and $GlobalFoundries (GFS.US)$ the final negotiations on billions of dollars in grants and loans for the Chips Act in the United States have been completed. These agreements were announced earlier this year when the Biden administration was eager to get the chip funding in place before the end of January to support the construction of American factories. U.S. officials are expected to announce these agreements in the coming weeks.
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 swept nearly 0.9 billion Hong Kong dollars in Meituan, bought more than 0.5 billion Hong Kong dollars in Citic Securities, and sold nearly 3.9 billion Hong Kong dollars in Tracker Fund of Hong Kong.
On November 7 (Thursday), southbound funds net bought 1.183 billion Hong Kong dollars of Hong Kong stocks.
$MEITUAN-W (03690.HK)$,$TENCENT (00700.HK)$and$CITIC SEC (06030.HK)$ Net purchases were 0.878 billion Hong Kong dollars, 0.658 billion Hong Kong dollars, and 0.541 billion Hong Kong dollars respectively;
$TRACKER FUND OF HONG KONG (02800.HK)$,$Hang Seng H-Share Index ETF (02828.HK)$,$SMIC (00981.HK)$Net sales of 3.87 billion Hong Kong dollars, 1.157 billion Hong Kong dollars, and 0.367 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: Preliminary value of the University of Michigan Consumer Confidence Index
On Friday, in terms of performance, in the Japanese stock market $Sony Group (6758.JP)$ the latest performance will be released, and in the US stock market $EOG Resources (EOG.US)$ Will announce the financial report.
In terms of new shares, Hong Kong new shares $AUGROUP (02519.HK)$Please use your Futubull account to access the feature.$APT ELECTRONICS (02551.HK)$ Will be listed.
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