Just now, the US stock market plunged! The Chinese stocks listed in the US are strong overall! The Fed will pause its rate cut? There are big differences
1min read Major indices in the U.S. stock market all plunged into the red shortly after the opening on Monday evening.
Tesla opened up more than 6%. Sources said the Trump team expressed the hope to loosen the U.S. regulations on autonomous vehicles.
Super Micro Computer opened high and climbed further, up 19%. The company plans to submit a compliance plan to Nasdaq on Monday to maintain its stock market trading qualification.
The U.S. dollar index fell sharply in the short term, and spot gold, silver and bitcoin all fluctuated higher.
Brent crude oil surged more than 2% during the trading day, as Norway's Sverdrup, the country's largest oil field, temporarily halted oil production.
China assets ETFs and popular Chinese stocks rallied across the board, with the 3x leveraged FTSE China ETF up more than 5%, and the Nasdaq China Dragon Index up more than 1%.
Specifically, Geely Auto jumped more than 6%, Neta Auto up more than 4%, NetEase, Xiaopeng Auto, Bilibili and Trip.Com up more than 2%.
Fed to pause rate cut in December?
Analysts at Nomura said in their latest note that they expect the Fed to pause its rate cut at its policy meeting in December, making it the first global brokerage to signal that the Fed will pause its rate cut after Trump's victory.
Nomura currently expects the Fed to cut its policy rate twice by 25 basis points in March and June next year, leaving its forecast for the federal funds rate unchanged at 4.125% before next year.
However, other investment banks including Goldman and Morgan Stanley still expect the Fed to cut its policy rate by 25 basis points next month.
Goldman: Focus on consumer and infrastructure
On the A-share market, foreign investors remain optimistic.
Goldman's 2025 outlook report released on November 18 expects the MSCI China Index and the CSI 300 Index to rise 15% and 13% respectively in 2025, mainly due to earnings per share growth and modest valuation growth. From the industry perspective, Goldman advocates adding the consumer sector to the investment portfolio and upgrades the rating of the healthcare and brokerage sectors.
Moreover, Goldman believes that the investment in public welfare and new infrastructure projects may accelerate as the debt relief program takes effect, and the consumer and infrastructure sectors can be paid attention to.