U.S. Stock Diary | S&P Nasdaq rises 1% as gains increase after interest rate meeting
The Wall Street stock market performed well. On the first trading day of November, the three major indexes rose for three consecutive days. The U.S. Federal Reserve kept interest rates unchanged for two consecutive times. The market expected that the chance of raising interest rates would decrease. The rally increased at noon. The S&P 500 Index and Nasdaq Index closed up more than 1%, with the latter returning to the 13,000-point level. The bond market rebounded, with the 10-year U.S. Treasury bond interest rate falling back below 4.8%. The U.S. dollar first rose and then fell, and the price of gold fell.
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Market conditions on November 1 (Wednesday)
l The Dow Jones index rose 221.71 points, or 0.67%, to 33,274.58 points.
l The S&P 500 index rose 44.06 points, or 1.05%, to 4,237.86 points.
l The Nasdaq index rose 210.23 points, or 1.64%, to 13,061.47 points.
l New York oil futures for December delivery closed at US$80.44 a barrel, down US$0.58 or 0.7%.
l New York December gold futures closed at 1,987.5 US dollars 94.3 an ounce, down 6.8 or 0.3%.
l The U.S. 10-year Treasury bond yield closed at 4.789%, down 8.6 points.
Technology stocks outperformed the market, with semiconductor companies AMD and Micron rising 9.7% and 3.8% respectively. The seven technology giants all rose, with Meta and Nvidia rising by more than 3.5% respectively, Amazon rising by nearly 3%, and the rest all rising by about 2% or more.
Although cosmetics company Estee Lauder’s performance was better than market expectations, its outlook disappointed investors. It closed down 19%, not only the largest single-day drop in history, but also falling to a six-year low.
The Federal Reserve did not raise interest rates at two consecutive interest rate meetings, and the federal funds rate was maintained between 5.25% and 5.5%, in line with market expectations. The interest rate statement raised the economic assessment for the third quarter to “strong” from “stable” in September. On the other hand, employment growth has slowed compared to the September statement, but the word “slow” was no longer used.
Chairman Powell said at a press conference that the strong economic activity was surprising, and added that if there is evidence that economic growth is above potential, the Fed may deem it appropriate to raise interest rates. He also emphasized that there is currently no consideration or discussion about interest rate cuts: “The question now is whether we should raise interest rates again.”
Despite its hawkish tone, after the meeting, the market believed that the chance of raising interest rates in the future was reduced. The interest rate futures market showed that investors believed that the chance of raising interest rates at the December meeting was 17.1%, which was significantly lower than the 28.8% of the previous day.
“We hope that Powell’s rhetoric will be tougher, lest the market interpret the two inactions as a license to re-bet on risk assets.” said Chris Zaccarelli, investment director at Independent Advisor Alliance.
The S&P 500 index successfully regained some of its losses in October this week, but BTIG’s Jonathan Krinsky believes that the upward trend cannot be sustained. “Although the S&P 500 index has successively created higher highs and higher lows in the past two days, We think this is just an oversold bounce. We think resistance is at 4220-4240.”
In terms of data, the ADP employment agency reported that private enterprise employment in the United States increased by 113,000 in October, which was lower than expected.
However, according to the Job Openings and Labor Turnover Survey (JOLTs) released by the U.S. Bureau of Labor Statistics, the number of open positions increased to 9.6 million, up from the downwardly revised 9.5 million in August and higher than Bloomberg’s median estimate of 9.4 million. . Job vacancies unexpectedly rose for the second consecutive month, reflecting that the labor market remains hot.
2023-11-01 22:34:40
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