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Boom! US stocks soar, Dow jumps 1500 points

AInvestWednesday, Nov 6, 2024 7:30 pm ET
2min read

U.S. stocks soared last night after Trump's victory, with major indexes hitting new highs.

The Dow Jones Industrial Average surged 1,508.05 points, or 3.57%, to 43,729.93. It was the first time the index had risen more than 1,000 points in a single day since 2022.

Trump-related stocks rose. Trump Media & Technology gained nearly 6%, and Tesla jumped more than 14% to a new high since July 2023.

With the U.S. election results settled, the market's focus gradually shifted to this week's Federal Reserve meeting, and the market generally believes that the Fed will almost "set in stone" a 25-basis-point cut this week. The cut is good for tech stocks, and the U.S. tech seven giants index soared nearly 1,500 points overnight.

Intel rose more than 7%, Nvidia and Google rose about 4%, Amazon rose more than 3%, Netflix and Microsoft rose more than 2%. Among them, Nvidia, Amazon and Netflix all set new closing highs.

Meanwhile, the Philadelphia Bank Index rose more than 10%, Goldman, Wells Fargo rose more than 13%, Morgan Stanley rose more than 11%, Citigroup and Bank of America rose more than 8%.

However, Chinese assets were mostly green last night, with the Nasdaq China Dragon Index falling 1.83%.

Most of the hot Chinese stocks fell. Neta Auto fell more than 5%, Bilibili fell more than 4%, Xiaopeng Auto fell nearly 4%, JD and Li Auto fell more than 3%.

At 3:00 a.m. Beijing time on November 8, the Fed will announce its latest interest rate decision. Although the market predicts a 100% probability of a cut, the market has already reduced its forecast for the Fed's rate cut in 2025, and the futures market for gold, silver and copper fell sharply overnight.

Huatai Securities believes that in this situation, the market believes that the Fed's rate cut path next year will see new twists and turns. At present, traders continue to expect the Fed to cut interest rates in November and December, but they reduce their bets on the Fed's rate cut next year.

Foreign investors continue to see investment opportunities in A shares.

Alliancebernstein Fund said on November 6 that A shares still have investment opportunities in the medium and long term, and the medium and long-term trend of A shares is highly correlated with the domestic macro economy and the outlook for corporate profits. With the current policy support and determination, the domestic economy is expected to stabilize and recover and drive corporate profit growth (the market consensus expects that the profits of listed companies in the CSI 300 Index in 2025 will rise 13.5% year-on-year), coupled with the fact that A shares are still attractive in terms of valuation and more than 1,000 listed companies in A shares, there are still many opportunities to select stocks to create excess returns.

Goldman reiterated its bullish stance on Chinese assets. In a research report on November 4, Liu Jingjin, chief China stock strategist of Goldman Research Department, and his team maintained the "overweight" rating for A shares and H shares and expected potential returns of about 20% for the next 12 months.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.