On the evening of the 27th Beijing time, the PCE inflation data favored by the Federal Reserve was released, with the annual rate of the core PCE price index for October recorded at 2.8%, the largest increase since April 2024. After the release of the PCE data in the USA, treasury yields rose slightly, and spot gold briefly fell by 8 dollars.

The market continues to focus on Trump's tariff policy and cabinet composition. The actual GDP growth rate of the United States in the third quarter slowed down compared to the second quarter.

As of the time of writing, the three major stock indexes in the USA are mixed, $S&P 500 Index (.SPX.US)$ down 0.14%, $Nasdaq Composite Index (.IXIC.US)$ down 0.46%, $Dow Jones Industrial Average (.DJI.US)$ Up 0.17%.

This Thursday is the Thanksgiving holiday in the USA, and the financial markets will be largely closed, with an early market close on Friday expected to see light trading volume.

On Tuesday, US stocks rose, with both the S&P 500 index and the Dow Jones Industrial Average setting new historical highs both intraday and at close.

Data released on Wednesday showed that a mortgage purchase application indicator in the USA surged to its highest level since February, as buyers seized the opportunity from slightly lower borrowing costs and an increased selection of homes on the market.

According to data released on Wednesday by the Mortgage Bankers Association (MBA), for the week ending November 22, the purchase application index spiked by 12.4%, reaching 152.9. The percentage increase is the largest since the beginning of 2023, although this data tends to be volatile around holidays.

The MBA cited reasons including the first decline in borrowing costs in nine weeks, with the contract rate for a 30-year fixed mortgage slightly decreasing to 6.86%.

The MBA noted other driving factors included strong economic performance and a rebound in inventory for sale. While the MBA did not mention this month's election, several builders have stated in recent earnings conference calls that uncertainty surrounding the presidential campaign is causing buyers to hesitate.

The revised annualized quarterly rate of real GDP in the USA for the third quarter remained at the initial estimate of 2.8%, slower than the 3% growth rate in the second quarter. However, the GDP report still indicates that the US economy remains resilient.

In the past nine quarters, growth rates exceeded 2% in eight quarters.

Nevertheless, U.S. voters angered by high oil prices are not satisfied with stable growth, and they chose to bring Trump back to the White House this month to completely reform America's economic policies.

However, business investment growth saw a significant slowdown in the third quarter due to a decline in non-residential construction investments such as housing and office buildings and warehouses. In contrast, equipment spending surged. When President-elect Trump takes office next month, he will inherit an economy that appears generally healthy.

The minutes from the Federal Reserve's monetary policy meeting released on Tuesday showed that while central bank officials expect to continue lowering interest rates, they indicated that the pace of rate cuts would occur 'gradually.'

Chicago Fed President Goolsbee stated on Monday that slowing the pace of interest rate cuts is 'completely sensible' as the Fed approaches what it considers the neutral level of monetary policy.

In an interview, Goolsbee said, 'To figure out what the neutral level is and what is restrictive, the on-the-ground guide version involves looking around and seeing how conditions are performing. You cannot do this in two weeks; it takes some time. So it may make sense to slow down in this context.'

Goolsbee is the Federal Reserve in 2025.The Federal Open Market Committee (FOMC)(FOMC) voting member. He has always been one of the more outspoken doves at the Federal Reserve.

On Monday, Goolsbee stated that it is 'clear' the Fed is 'on a path that will lead to lower rates, closer to what you might call neutral levels.'

Stephen Stanley, chief economist for usa capital markets at banco santander, stated: "I believe they will lower interest rates again in December. I think they feel they are still far from the neutral rate, so they think they have a distance to go, and they want to push another step forward at that point."

The market continues to pay attention to Trump's tariff policies and cabinet choices. Investors are curious about Trump's next potential tariff targets after his election as president. A day ago, Trump promised to impose new tariffs on canada, mexico, and china.

Trump stated later on Monday that he would immediately impose a 25% tariff on all products from mexico and canada upon taking office in January, and an additional 10% tariff on goods from china. This move has sparked warnings of retaliation.

Trump's tariff policy following his election as president seems to be further propelled by his appointment of Jamieson Greer as usa trade representative and Kevin Hassett to head the national economic council. Greer played an important role in trade policy decision-making during Trump's first term.

"If we are close to a situation of imposing comprehensive tariffs, I think this will be a warning for risk assets, stocks, and credit," said Wei Li, blackrock's global chief investment strategist, in an interview. "Currently, we are 'risk-on', but the situation may change."

Samy Chaar, chief economist at Lombard Odier, stated: "We are struggling to understand Trump's very volatile rhetoric, on one hand very aggressive and uncompromising tariff policies, and on the other a rather pragmatic choice for treasury secretary. Trump's policies are relatively favorable for the business environment in the usa, but they may be more challenging for other countries, which need to adjust and find ways to avoid disruptions and increased costs of entering the usa market."

Usa treasury bonds rose, driving the yields on 10-year benchmark bonds down by 4 basis points to 4.27%. The usa bond market was optimistic this week about Trump's weekend announcement of the appointment of treasury secretary basant.

Keiko Kondo, head of multi-asset investment at Schroders investment in asia, stated: "We need to remember that based on Trump's first term, these agendas are subject to change depending on how policy priorities shift, and what he can achieve while negotiating with various countries."

Kondo added that based on the company's estimates, nearly 40% of what Trump promised during his term was unfulfilled. "We can only wait and see."

Focus stocks

Most growth tech stocks are down, $NVIDIA (NVDA.US)$ $Salesforce (CRM.US)$ Down 2.6%, $Meta Platforms (META.US)$ Dropped by 1%.

China concept stocks generally rose. $Li Auto (LI.US)$Increased by over 7%, $XPeng (XPEV.US)$ up nearly 6%, $JD.com (JD.US)$ Rising nearly 5%.

Crypto concept stocks surged collectively, $Iris Energy (IREN.US)$up more than 20%, $Bit Digital (BTBT.US)$、 $MicroStrategy (MSTR.US)$ In terms of news, the iPhone 16 series is expected to be released in September 2024 and may be officially unveiled on September 10. Soochow Securities' research report also pointed out that with August entering the peak season for iPhone new component stocking, production and delivery are expected to accelerate, and the market is highly concerned about the launch of the iPhone 16 series in September.

Quantum computing concept stocks are booming, $Quantum Computing (QUBT.US)$ 、 $Rigetti Computing (RGTI.US)$ Rise by 10%.$Quantum (QMCO.US)$At one pointCircuit breaker, now up nearly 19%.

$Dell Technologies (DELL.US)$Decline narrowed to 10.63%, with Q3 revenue and Q4 performance guidance both disappointing.

$Super Micro Computer (SMCI.US)$Increased by 5.63%, repaying loans from two banks in advance.

$CrowdStrike (CRWD.US)$The decline expanded to 5%, with adjusted earnings per share for the fourth fiscal quarter falling short of expectations.

$Amgen (AMGN.US)$ Increased by 0.35%, announcing the weight loss drug trial results and$Eli Lilly and Co (LLY.US)$Zepbound is comparable but has greater side effects.

"Affordable weight loss drug" $Hims & Hers Health (HIMS.US)$ The increase narrowed to 4.71%, as Citron pointed out that Trump nominated Marty Makary as FDA director, and the company may benefit from it.

Editor/Rocky