Federal Reserve Chairman Powell speaks at a press conference after the Federal Reserve’s Federal Open Market Committee meeting in Washington, D.C., on November 1, 2023.
Kevin Dickey | Getty Images News | Getty Images
This report comes from today’s CNBC Daily Open, our new international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see?You can subscribe here.
What you need to know today
Markets cheered the decision
U.S. markets rose on Wednesday as investors digested and cheered the Federal Reserve’s decision to keep interest rates steady. Asia-Pacific markets mostly followed Wall Street higher Thursday. Although South Korea’s inflation rate reached 3.8% in October, which was the third year-on-year price increase, South Korea’s Kosdaq index still rose by about 4.2%. Japan’s Nikkei 225 was another winner on Thursday, rising 1.13%.
bond relief
The U.S. Treasury Department will auction $112 billion in debt next week, divided into three tranches: $48 billion in 3-year bonds, $40 billion in 10-year bonds, and $24 billion in 30-year bonds. After that, the department said it would focus more on interest-bearing notes and bonds. Investors are watching the auction closely because it could affect the trajectory of bond yields, which have recently been at multi-year highs.
exciting sales
October is a prosperous month for Chinese electric vehicle companies. Xpeng 20,002 vehicles delivered ideal car 40,422 vehicles were delivered – both figures are new records, according to figures released by the company. Nioh Deliveries increased in October, but the 16,074 units were still about 4,000 units lower than July’s deliveries. BYD With sales of 165,505 pure electric vehicles last month, it remains the dominant player in the industry.
(PRO) S&P 500(0) Dream
In August, Morgan Stanley Investment Management’s Andrew Slimmon said the S&P 500 would hit 5,000 this year. Is Slimone still holding on to his beliefs even as the index falls for three straight months? If so, which stocks would he buy to take advantage of the rally?
bottom line
In the space of a year, the Fed has gone from a harbinger of doom for the stock market to a beacon of hope.
Take how the market plummeted in response to the epidemic as an example The Federal Reserve meeting last November.
However, the market rebounded after the Federal Reserve meeting yesterday.this S&P 500 Index It rose 1.05% and closed above 4,200 points for the first time since October 24. Dow Jones Industrial Average up 0.67% Nasdaq Index Boosted by technology stocks, the stock price rose 1.64% AMD and Nvidiathe best day since August 29th.
Of course, the key facts of the two Fed meetings are clearly different. Compared with last year’s 75 basis point rate hike, the Fed kept interest rates unchanged this time as expected.
But the environment surrounding the Fed’s decision is also different. Recession fears dogged investors last year. Today, the Federal Reserve upgraded its assessment of the U.S. economy, saying “economic activity expanded strongly in the third quarter.” (By contrast, the Federal Reserve said in its September statement that the economy was expanding at a “solid pace.”)
However, this “strong pace” – an annualized growth rate of 4.9% in the third quarter – comes with signs of slowing growth.Data shows private payrolls rose less than expected while U.S. manufacturing activity grew Data from Institute for Supply Managementshrinking more than expected.
Given that core inflation was 3.7% in September, it’s no surprise that stocks are rising: investors are hoping for a soft landing of subdued inflation without a recession.
That’s not to say Powell has completely abandoned his hawkish rhetoric. He still warned that inflation has exceeded the 2% target set by the Federal Reserve; the Federal Reserve will make a decision in December; and interest rate cuts are not at all on the table.
But compared to the events of a year ago, it is undeniable that on many fronts tremendous progress has been made. While investors are preoccupied with the market’s day-to-day swings, it’s also a reminder that things do get better in the long run.
Svlook
