On November 5th, U.S. stocks saw significant gains, with all three major indices rising more than 1%. The S&P 500 climbed by 1.23% to 5782.76 points, the Dow Jones increased 1.02% to 42221.88 points, and the Nasdaq advanced by 1.43% to 18439.17 points. Notably, stocks like Vimeo surged 44.70%, Astera rose by 37.70%, and logistics technology company ArcelorMittal Holdings soared 34.77%. Meanwhile, Marqeta suffered a steep decline of 42.52%, Jeld-Wen Holdings dropped 29.87%, and Mediaalpha fell by 27.83%.
The U.S. non-farm payroll data came in significantly below expectations, leading institutions to anticipate a substantial increase in the likelihood of the Fed cutting interest rates again at its November meeting. This could result in another boost to global market liquidity. Simultaneously, the upcoming U.S. election appears to be presenting new opportunities for the market, supporting the recent uptick in stocks.
There was a notable impact on tech-heavy funds, which performed well. Exemplifying this trend, certain international funds that focus on technology and AI stocks, such as those investing in Nvidia, have shown impressive returns over the past year, attributed to strong third-quarter earnings. These funds have strategically positioned themselves in both U.S. and Hong Kong tech giants.
Elsewhere, over 20 U.S. states commenced early voting for the 2024 presidential election. In related market movements, Trump Media & Technology Group saw its shares rise more than 16%, reflecting optimism in Trump-related stocks. Tesla shares also rose over 3%, following news of salary increases for employees at its Berlin gigafactory.
Cryptocurrency-related stocks experienced early strength with MicroStrategy up nearly 9%, CleanSpark rising over 5%, and MARA Holdings up close to 5%. Bitcoin itself rallied by 2.7%, reaching 69,700 USD.
Chinese stocks listed in the U.S. also registered gains, with the Nasdaq Golden Dragon China Index up over 1%. Notable increases included Kingsoft Cloud surging more than 15% and Bilibili rising over 6%.
The increase in service sector activity was reflected in the latest economic data, with the U.S. October ISM non-manufacturing PMI reported at 56, surpassing expectations and suggesting robust economic activity.
Additionally, pending the election results, analysts are cautiously optimistic about the potential for market fluctuation and any subsequent impact on 2024 economic policies. The interplay between fiscal policies and market performance remains a focal point of investor attention as the Fed's monetary policy meeting approaches.