U.S. Non-Farm Payrolls Surge in September, Fuels Stock Market Optimism

U.S. stocks opened lower last Friday and then rallied, with all three major indices posting gains.

In terms of data, the U.S. added 336,000 non-farm jobs in September, significantly surpassing expectations. The likelihood of a Fed rate hike this year has increased (as indicated by federal funds futures, there is about a one-third chance of another rate hike in November, although the probability has increased slightly, the magnitude of the hike is not significant).

CME’s Fed watch tool also suggests that the market has increased its bets on a rate hike in the November meeting following the release of the latest non-farm payroll data.

Currently, investors believe that there is a 71.3% chance that the Fed will maintain interest rates in the range of 5.25-5.5% in November, with a 28.7% chance of a 25 basis point hike, an increase of 8.6% from one day ago.

U.S. Stocks

Fundamental Analysis:

Large-cap tech stocks saw widespread gains, with Meta rising over 3%, Microsoft, Netflix, and Google-C rising over 2%, Amazon and Apple rising over 1%, and Tesla showing a slight increase.

Chip stocks also rose across the board, with AMD up over 4%, STMicroelectronics and ASML Holdings up over 3%, ARM, TSMC, NVIDIA, and ASML all up over 2%.

Popular Chinese concept stocks mostly saw gains, with the Nasdaq Golden Dragon China Index up 2.60%, Pinduoduo up over 7%, Kingsoft Cloud up over 6%, iQiyi up over 4%, KE Holdings up nearly 4%, Baidu, JD.com, and Bilibili up over 3%, Alibaba, XPeng, and New Oriental up over 2%.

Technical Analysis:   

(S&P 500 Index, 1-day chart)

Market Trends:

  • Dow Jones Industrial Average rose 288.01 points, an increase of 0.87%, closing at 33,407.58 points.
  • Nasdaq Composite Index (Nasdaq) gained 211.51 points, an increase of 1.60%, closing at 13,431.34 points.
  • S&P 500 Index rose 50.31 points, an increase of 1.18%, closing at 4,308.50 points.

Hong Kong Stocks

Hong Kong stocks were closed in the morning due to the influence of Typhoon Signal No. 8 and are set to resume trading at 2:00 PM.

FTSE China A50 Index

Fundamental Analysis:

On the first trading day after the extended holiday, the A-share market’s three major indices opened lower, briefly testing lows with all three indices falling by more than 1%.

Subsequently, there was a rapid rebound, with the ChiNext Index briefly turning positive but then falling again.

In terms of industry sectors, auto parts, automobile manufacturing, shipbuilding, power equipment, and automotive services led in terms of gains, while travel and hotels, jewelry and jewelry, real estate development, cultural media, and real estate services led in terms of losses.

In terms of themes, Huawei’s automotive venture, liquid cooling concepts, weight loss drugs, fast charging, electronic rearview mirrors, and hub motors were active concepts.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) fell by 0.69%, closing at 3,088.94 points.
  • Shenzhen Component Index (SZCOMP) fell by 0.68%, closing at 10,040.81 points.
  • ChiNext Index (CHINEXT) fell by 0.96%, closing at 1,984.72 points.
  • SSE STAR Market 50 Index (SSE50) fell by 0.41%, closing at 884.14 points.

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