Early this morning Beijing time, Federal Reserve Governor Waller gave the latest opinion on the upcoming interest rate cut expectations at a Stanford University meeting. He believes that future interest rate cuts need to be "more cautious", implying that the magnitude of future interest rate cuts will be smaller than the significant rate cut in September.
Waller cited recent reports on employment, inflation, GDP, and income, pointing out that the economy may not have slowed down as expected, and is much stronger than previously thought, with little sign of a significant slowdown in economic activity. He said that the current economic data allows the Federal Reserve to cut interest rates at an "appropriate pace" until a neutral rate is achieved.
On Monday local time, the three major indexes of the US stock market closed slightly higher, with the S&P 500 index and Dow Jones Industrial Average reaching new historical highs. As of the close, the Dow Jones Industrial Average rose 0.47% to 43065.22 points; The Nasdaq index rose 0.87% to 18502.69 points; The S&P 500 index rose 0.77% to 5859.85 points.
In terms of individual stocks, Nvidia has hit a new closing high after four months, with a cumulative increase of over 13% since October and a cumulative increase of over 178% for the year. Recently, Nvidia has been giving the market reassurance: as an AI chip giant, Nvidia CEO Huang Renxun recently stated that the company's Blackwell series chips have been fully put into production and demand is strong. Morgan Stanley, which met with Nvidia management last week, also released a report confirming the above.
In terms of commodities, overnight, international oil prices plummeted, with WTI crude oil and Brent crude oil both experiencing daily declines of nearly 5%. On the news front, some media reported that Israel does not intend to strike Iran's oil and nuclear targets, while the Organization of the Petroleum Exporting Countries has lowered its global oil demand expectations for 2024 and 2025 for the third consecutive month.
S&P 500 Index and Dow Jones Industrial Average hit new highs
On Monday local time, all three major US stock indexes turned red, with the S&P 500 index and Dow Jones Industrial Average reaching new historical highs. As of the close, the Dow Jones Industrial Average rose 201.36 points, or 0.47%, to 43065.22 points; The Nasdaq index rose 159.75 points, or 0.87%, to 18502.69 points; The S&P 500 index rose 44.82 points, or 0.77%, to 5859.85 points.
Most bank stocks rose, with Goldman Sachs, Morgan Stanley, and Wells Fargo rising more than 1%, Citigroup rising slightly, and JPMorgan Chase and Bank of America falling slightly.
The chip and semiconductor sectors rose, with ARM up over 6%, Qualcomm and ASML up over 4%, and Anson Semiconductor up over 3%.
Airline stocks fluctuated, with Delta Air Lines rising over 3%, United Airlines rising over 2%, American Airlines rising slightly, Boeing falling over 1%, and Southwest Airlines falling slightly.
Trump concept stocks saw a significant increase, with Trump Media Technology Group rising over 18%.
Popular Chinese concept stocks generally fell, with the Nasdaq China Golden Dragon Index falling 2.09%. Xiaopeng Motors fell more than 9%, NIO fell more than 7%, Pinduoduo fell more than 6%, iQiyi, Weibo, Baidu, and Futu Holdings fell more than 4%, NetEase and Bilibili fell more than 3%, Alibaba fell more than 2%, Ideal Auto fell more than 1%, and Tencent Music and Vipshop fell slightly. Manbang rose by over 1%, while JD.com saw a slight increase.
Last week, JPMorgan Chase and Wells Fargo announced better than Wall Street's expectations for their third quarter performance. Some market participants believe that this means that as the Federal Reserve lowers interest rates, the US economy is steadily moving forward, which gives the US stock market the motivation to continue rising.
Early this morning Beijing time, Federal Reserve Governor Waller gave the latest opinion on the upcoming interest rate cut expectations at a Stanford University meeting. He believes that future interest rate cuts need to be "more cautious", implying that the magnitude of future interest rate cuts will be smaller than the significant rate cut in September.
Waller cited recent reports on employment, inflation, GDP, and income, pointing out that the economy may not have slowed down as expected, and is much stronger than previously thought, with little sign of a significant slowdown in economic activity. He said that the current economic data allows the Federal Reserve to cut interest rates at an "appropriate pace" until a neutral rate is achieved.
Nvidia hits new high after 4 months
On October 14th local time, most large technology stocks in the US stock market rose, with Nvidia rising more than 2%, setting a new historical closing high after four months. As of the close, Nvidia's cumulative increase since October has exceeded 13%, and its cumulative increase for the year has exceeded 178%.
In terms of market value, Nvidia surpassed Microsoft last week to take second place, second only to Apple. On Monday of this week, Nvidia's market value has reached $3.4 trillion, continuing to expand its leading advantage over Microsoft.
As an AI chip giant, Nvidia's every move has attracted market attention. Previously, there were media reports that due to design flaws, the most advanced AI chip in Nvidia's Blackwell series of chips will be delayed for three months or more, and bulk shipments of Blackwell chips may be delayed until the first quarter of next year.
Since then, the production progress of Blackwell chips has been constantly affecting the "nerves" of all parties in the market. After the stock market closed on October 2nd, Nvidia CEO Huang Renxun made it clear that the Blackwell architecture chips had been "fully put into production" and that there was "insane demand for Blackwell chips." At the time, some comments suggested that Huang Renxun's speech eased concerns about the delay in Blackwell chip production.
Meanwhile, Morgan Stanley released a report after meeting with Nvidia management last week, once again sending a positive signal. The report reveals that Blackwell chips have been sold out in the next 12 months, indicating strong market demand and a continued high growth trend for shipments throughout the year. The report states that "all signs indicate that the business remains strong and the outlook is very bright.
In terms of other technology stocks, Apple and Google rose more than 1%, while Microsoft, Tesla, and Meta rose slightly; Netflix fell over 1%, while Amazon experienced a slight decline.
International oil prices plummet
Overnight, international oil prices fell sharply, and near the end of trading, WTI crude oil and Brent crude oil suddenly plunged. As of the close, WTI crude oil fell 4.9% to close at $71.86 per barrel; Brent oil fell 4.87% to $75.19 per barrel.
On the news front, according to The Washington Post, Israeli Prime Minister Netanyahu informed the United States that Israel does not intend to strike Iran's oil and nuclear targets, but will strike the Iranian military.
In addition, according to CCTV News on the 15th, the Organization of the Petroleum Exporting Countries (OPEC) released its monthly oil market report on October 14th local time, lowering its expectations for global oil demand in 2024 and 2025. This is the third consecutive downward adjustment of the organization's global oil demand forecast for the next two years, following two reductions in August and September.
The report shows that OPEC has lowered its forecast for the year-on-year increase in global average daily oil demand in 2024 from 2.03 million barrels to 1.93 million barrels. The adjusted annual average daily oil demand is expected to be around 104 million barrels.
OPEC stated that this adjustment was made based on data received by the organization and expectations for oil demand in some regions.
In addition, OPEC has lowered its forecast for the increase in global daily oil demand from 1.74 million barrels per day in 2025 to 1.64 million barrels per day compared to the previous year. The adjusted annual daily oil demand is expected to be around 106 million barrels per day.
Author: Yan Xiaofei
