Overnight US stock market trends diverged, while Chinese concept stocks strengthened.
Chinese concept stocks strengthen
The US stock market closed with mixed gains and losses, with the Dow Jones Industrial Average falling for the third consecutive trading day, the Nasdaq up 0.6%, and the S&P 500 index up 0.39%. US treasury bond bond yields climbed. This week, the market is paying attention to a batch of important corporate financial reports, including Nvidia, as well as the Federal Reserve's interest rate policy and the outlook for the US stock market after the election.
Most large technology stocks have risen, with Tesla rising over 5%, Intel and Netflix soaring over 2%, Google, Apple and others rising over 1%, and Meta and Microsoft rising slightly; Nvidia fell over 1%, while Amazon experienced a slight decline.
Trump's media technology has risen by over 16%; The US stock BKKT surged 162.37%, triggering a circuit breaker during trading. According to reports, Trump's social media company is in deep negotiations to acquire Bakkt, a cryptocurrency trading platform under the Intercontinental Exchange.
Earlier, it was reported that the team of President elect Trump would seek to relax the supervision of autonomous vehicle. According to reports, Trump plans to participate in the SpaceX launch event tomorrow.
The US Department of Justice will push Google to sell Chrome to break the monopoly and demand measures to allow websites to choose not to use artificial intelligence.
Nvidia will announce its performance on Wednesday, and traders will pay attention to guidance regarding the company's demand for its Blackwell artificial intelligence (AI) chips. According to sources cited by the media, Nvidia's Blackwell chips have experienced overheating in servers.
Supermicro Computer submitted a compliance plan to NASDAQ, and the company's stock price rose 20% after hours. Supermicro Computer appoints BDO as auditor to submit delayed declaration plan.
Most popular Chinese concept stocks rose, with the Nasdaq China Golden Dragon Index closing up 1.71%.
In terms of individual stocks, Bilibili rose over 4%, NIO rose nearly 4%, Miniso and Xiaopeng Motors rose over 2%, and Ideal Auto rose over 1%. IQiyi fell more than 2%, while Lufax Holdings fell more than 1%.
The FTSE China A50 futures index closed up 0.11% in consecutive night trading, at 13453 points.
In terms of digital currencies, Bitcoin has risen. In the past 24 hours, over 110000 people have sold out.
COMEX gold futures rose 1.78% to $2615.9 per ounce. COMEX silver futures rose 2.67% to $31.245 per ounce.
The settlement price of international crude oil futures has risen significantly by over 3%. WTI December crude oil futures closed up $2.14, or 3.19%, at $69.16 per barrel. Brent crude oil futures closed up $2.26, or 3.18%, at $73.3 per barrel in January.
Divergent expectations of Federal Reserve interest rate cuts
The market continues to pay attention to the post election trend of the US stock market.
Renowned bear and Morgan Stanley strategist Michael Wilson holds an optimistic outlook for the US stock market in 2025. Given the expectation that improved economic growth and further interest rate cuts by the Federal Reserve will drive the index up, he expects the S&P 500 index to be around 6500 points by the end of next year, up 11% from Friday's closing price.
Wilson previously predicted that the S&P 500 index would reach 5400 points by mid-2025, and the index had already surpassed the 6000 point mark last week. Wilson wrote in the research report, "We expect this profit growth to continue as the Federal Reserve cuts interest rates and business cycle indicators continue to improve
Investors continue to pay attention to the path of the Federal Reserve's interest rate cuts. Last Thursday, Federal Reserve Chairman Jerome Powell stated that given strong economic growth and a robust labor market, the Fed is not "in a hurry" to cut interest rates - which led to a sell-off in US stocks last week.
According to the Chicago Mercantile Exchange's Federal Reserve observation tool, most investors are now pricing their overnight loan rates at the end of this year between 4.25% and 4.50%.
Nomura Securities no longer expects the Federal Reserve to cut interest rates at its December policy meeting. This makes it the first global brokerage firm to suggest that the Federal Reserve will pause its interest rate cut cycle after Trump won the election.
Nomura Securities now expects that the Federal Reserve will only cut interest rates twice, each by 25 basis points, at its meetings in March and June 2025. The securities firm maintains its forecast for the Federal Reserve's federal funds rate until next year at 4.125% unchanged.
Nomura Securities believes that in the context of sustained economic growth and the possibility of further inflation, policy makers have recently made hawkish remarks, which further indicates that the Federal Reserve is not in a hurry to cut interest rates. Therefore, the Federal Reserve will suspend its tightening cycle next month.
Meanwhile, other global securities firms including Goldman Sachs and JPMorgan still expect the Federal Reserve to cut interest rates by 25 basis points next month.