1. Good morning, brothers and sisters, there was another big positive news from overseas on Friday night! The three major stock indexes of the United States collectively rose sharply! The Nasdaq index rose by 2 percent! Apple's stock price also rose by 6 percent, and its market value increased by $160 billion.
2. Why did U.S. stocks suddenly rise sharply, and what happened?
Last night's sudden surge in U.S. stocks was described in one sentence: the non-farm payrolls data led to the Fed's interest rate cut expectations, which led to the rise of U.S. stocks
The specific situation is this, the US Labor Department released the April non-farm payrolls report released last night, which showed that the number of non-farm payrolls in the United States increased by 175,000 in April, significantly lower than the expected 240,000, and the unemployment rate in the United States in April was 3.9%, higher than the expected 3.8%.
Non-farm payrolls fell sharply short of expectations in April, which somewhat eased expectations that inflation would continue to rise and strengthened investors' hopes that the Fed could start cutting interest rates soon, leading traders to bring forward their expectations for the Fed's first rate cut from November to September. And the latest U.S. interest rate futures currently expect the Federal Reserve to cut interest rates by 25 basis points twice in 2024, and the pre-farm expectation is one.
In addition, Apple's sharp rise last night was because Apple released its second-quarter results (first quarter of 2024) The company's second-quarter revenue and net profit exceeded expectations, and Apple also announced an increase of $110 billion (about 800 billion yuan) in the buyback plan, which was the largest in Apple's history, which led to a 6% rise in Apple's stock price.
Now the U.S. stock market is completely controlled by the Federal Reserve in the short term, and the news of a little increase in interest rates will rise immediately, and the news of a little delay in interest rate cuts and no interest rate cuts will fall, and the Fed will do nothing in this way, and it will affect the market just by talking about it, but generally speaking, it will not affect the rise of U.S. stocks.
3. Will the U.S. stock market rise in the future?
U.S. stocks will continue to rise, first of all, there is no negative for U.S. stocks, Dalong believes that no matter whether the Federal Reserve cuts interest rates or not, it will not affect the long-term bull market trend of U.S. stocks, but the interest rate has risen more, and the interest rate has risen slowly, and now global funds are still flowing into U.S. stocks, and as long as U.S. technology stocks do not fall, U.S. stocks can continue to rise, and the long-term good performance of U.S. technology stocks promotes U.S. stocks to continue to rise, The top five stocks in the U.S. stock market are Microsoft, Apple, Nvidia, Amazon and Meta, they are both from the technology industry, accounting for nearly a quarter of the market capitalization, To put it bluntly, as long as these technology giants continue to rise, US stocks can continue to rise, these technology giants have also continued to hit new highs in recent years, and the market outlook can still be expected to reach a new high after the Fed cuts interest rates in the second half of this year.
4. What is the impact of the sharp rise in U.S. stocks on A-shares after the holiday?
The global stock market rose sharply in the past few days, Hong Kong stocks rose 7 points in two days, US stocks also rose 4 points, and Chinese assets also rose sharply, which is also a positive impact on the opening of A shares next Monday.
In a word, whether it is a U.S. stock or a share, Dalong is optimistic about the short-term, Dalong believes that the rise of A-shares after the holiday is basically stable!
It's not easy to code words, hard work to give Dalong homeopathic a thumbs up and support, with everyone's encouragement and support, Dalong has the motivation to keep sharing, I wish you all to eat meat every day!
Commonly used indices ($SSE Index$ ChiNext $ $ NASDAQ $ Dow Jones $ S&P 500 $ CSI 300$ )
Daily posting time
Morning review: 8 a.m. - 9 p.m
Afternoon review: before 12 o'clock
Fund operation: before 14:10
Re-entry: Before 20:10
Daily fund real return update: 0:00 points