【 Introduction 】 The Federal Reserve's interest rate cut has landed, and the Nasdaq index has surged! China's asset boom
On Thursday, November 7th Eastern Time, most of the three major stock indexes in the United States closed higher, with the Nasdaq closing above 19000 points for the first time and the S&P 500 index approaching 6000 points. The Fed's 25 basis point rate cut is in line with market expectations, and Powell stated that the overall economic performance is strong.
The Nasdaq closed above 19000 points for the first time
The Dow Jones Industrial Average closed slightly lower by 0.59 points, at 43729.34 points; The Nasdaq rose 285.99 points, or 1.51%, to 19269.46 points; The S&P 500 index rose 44.06 points, or 0.74%, to 5973.10 points.
The Federal Reserve has lowered its benchmark interest rate by 25 basis points to 4.50% to 4.75%, marking the second consecutive rate cut and meeting market expectations.
The Federal Reserve stated that the risks faced by employment and inflation targets are "roughly balanced," but the resolution removed the statement about "gaining confidence in anti inflation issues. The partial adjustment of the resolution statement has caused some speculation: "Is it implying that the possibility of suspending interest rate cuts in December cannot be ruled out?" The interest rate resolution has been unanimously passed.
Federal Reserve Chairman Powell stated that the overall economic performance is strong, and recent indicators indicate that the economy is expanding steadily, consumer spending growth remains resilient, and supply conditions have improved, which has already supported the economy.
Powell reiterated that US inflation has become closer to 2%, and core inflation is still somewhat high. Cutting interest rates will help maintain the strength of the economy. The Federal Reserve will continue to make decisions in successive meetings.
Whitney Watson, co head of fixed income and liquidity solutions at Goldman Sachs, expects the Federal Reserve to cut interest rates by 25 basis points in December. However, stronger data and uncertainty in fiscal and trade policies mean that there is an increasing risk that the Federal Reserve may choose to slow down its easing pace. The term 'skip' may enter our vocabulary in 2025, "Watson said
Deutsche Bank analyst Matthew Luzzetti said that the Fed's decision today was "easy," but he is not sure if December will be so easy. He said that after this interest rate cut, next month's decision may be "controversial" as interest rates are approaching neutrality. Therefore, for some people, slowing down the pace of interest rate cuts may be more meaningful.
[align center] Trump may let Federal Reserve Chairman Powell serve his remaining term
CCTV News reported on November 7th local time that a senior advisor to Trump said that if Trump is elected as the President of the United States, he is likely to retain Powell's position as Federal Reserve Chairman until Powell's term ends in May 2026.
The advisor stated that although Trump may change his mind at any time, the current view of Trump and his economic team is that Powell should continue to serve as the chairman of the Federal Reserve because the Fed is implementing a rate cut policy.
The European Union may impose a fine of up to 1.8 billion euros on Apple
Chip stocks have generally risen, with Intel up over 4%, TSMC up over 4%, AMD up over 3%, Broadcom up over 2%, ASML up over 2%, Nvidia up over 2%, and Micron Technology up over 1%.
Nvidia's latest market value exceeds $3.65 trillion, further solidifying its position as the world's top market value. Goldman Sachs released a report stating that before Nvidia disclosed its third quarter results, the bank reiterated its "buy" rating and included it in the "buy with confidence" list. Although the bank expects Nvidia's first quarter performance to be disclosed in April next year to be the truly breakthrough quarter, it is expected that Blackwell's progress and improved supply side conditions will bring significant positive adjustments to earnings per share at that time.
The European Commission plans to impose fines on Apple Inc. under the Digital Markets Act, which could amount to 1.8 billion euros, or approximately 13.9 billion yuan. Because Apple restricts app developers from recommending non Apple Pay options to users, it limits users' opportunities to obtain more favorable prices. It is expected that the punishment will be determined this month.
Just a few months after Apple was fined 1.8 billion euros by the European Union for similar allegations, this potential fine is significant. Because the Digital Markets Act stipulates that the European Commission has the authority to impose fines of up to 10% of a company's global annual revenue on first-time violators, and for repeat violators, the fine amount will be increased to 20%.
If Apple continues to resist compliance, the European Commission will impose daily fines on it, up to 5% of the company's daily revenue.
HSBC executive: The first round of layoffs will take place within a few weeks
Michael Roberts, head of HSBC Holdings' newly established global wholesale banking division, stated that the bank is planning to move forward with the current restructuring process "extremely quickly" and may announce the first wave of layoffs in the coming weeks.
Roberts stated in an interview on Thursday that layoffs will be concentrated in senior positions, and the restructuring plan announced by CEO Georges Elhedery last month will be completed in a "thoughtful manner".
We are very aware that this will distract our work attention, so we will take action as soon as possible, "Roberts said." We announced a few weeks ago that the first round of layoffs will quickly unfold in the coming weeks
Bank stocks fell across the board, with JPMorgan Chase down over 4%, Goldman Sachs down over 2%, Citigroup down over 1%, Morgan Stanley down over 2%, Bank of America down over 1%, and Wells Fargo down over 3%.
Popular Chinese concept stocks mostly rise
Most Chinese concept stocks rose, with the Nasdaq China Golden Dragon Index up 3.5%. In terms of popular Chinese concept stocks, Century Internet rose over 16%, Xiaopeng Motors rose over 15%, Wanguo Data ADR rose over 13%, Futu Holdings rose over 12%, Tiger Securities rose over 9%, and Bilibili rose over 8%.
(Compiled by Zhao Xinyi)
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