【Morning report】Expectations for a 0.25% rate cut by the FRB rise, as weak employment statistics and job cuts lead to Berkshire's record high cash on hand, and sale of Apple shares.

On the 2nd, the US stock market rebounded. The Dow Jones Industrial Average closed at 42,052.19, up 288.73 points, while the Nasdaq closed at 18,239.92, up 144.77 points.
In response to the expected rate cut after the employment statistics, the market rose after the opening. Positive corporate earnings, buying interest, and new funds flowing in at the beginning of the month supported the uptrend. Despite the rise in long-term interest rates, online retail and the semiconductor sector's gains provided support, leading Nasdaq to trade positively throughout the day. By sector, retail and semiconductor & manufacturing equipment rose, while the utilities industry declined. $Amazon (AMZN.US)$And semiconductors $Intel (INTC.US)$showed strength throughout the day and closed positively. By sector, retail, semiconductors & manufacturing equipment rose, while the utilities industry declined.
The Tokyo stock market will be closed on the 4th.

Top News
Speculation about a 0.25% rate cut by the FRB increases, amid weak employment statistics and job cuts.
・Weak October employment statistics maintained the trajectory for the Federal Reserve Board (FRB) to lower interest rates by 0.25% at next week's meeting, allowing for continued financial easing.
・The number of non-farm payroll employees increased by a mere 0.01 million, but this figure is highly likely to have been distorted by two hurricanes and a large-scale strike at Boeing. However, data released on Friday showed that employment numbers for August and September decreased more than anticipated, with an unemployment rate remaining stable at 4.1%.

Berkshire's cash holdings reached a record high of $325.2 billion, prompting the sale of Apple shares.
・Berkshire, led by Mr. Buffett, $Apple (AAPL.US)$announced in a statement on Saturday that it had once again reduced its shareholding in the company. It decreased from $84.2 billion in the second quarter to $69.9 billion at the end of the quarter.
・The company is struggling to find ways to deploy its mountain of cash as Mr. Buffett has determined that the market prices are too high to find attractive deals. At the annual meeting, Mr. Buffett stated that Berkshire would not rush to spend unless it was something with "little risk and a great profit potential."

Nvidia joins the Dow Inc stocks, replacing Intel
・The chipmaker that plays a key role in the artificial intelligence boom, $NVIDIA (NVDA.US)$However, it has become one of the three oldest stock commodity benchmarks on Wall Street. The company, with a history of 128 years, will replace its rival, $Dow Jones Industrial Average (.DJI.US)$, in the midst of its 128-year history, with its rival $Intel (INTC.US)$being replaced by the company.
・The inclusion of Nvidia in the blue-chip index is evidence of the power of the AI-led rally that has increased Nvidia by 900% over the past 24 months. The Dow average, which until now did not have Nvidia in its shareholding, was the only U.S. stock commodity benchmark.

The Tokyo Stock Exchange will extend the trading hours for physical transactions as planned, starting from the 5th.
The Tokyo Stock Exchange announced on the 3rd that it will implement the upgrading of the physical stock trading system 'arrowhead' as planned starting from the 5th.

The U.S. non-farm payroll in October increased by 0.012 million, significantly lower than market estimates, due to hurricanes and Boeing strikes.
According to the employment statistics released by the US Department of Labor on the 1st day,Non-farm payroll employment in Octobermentionedincreased by 0.012 million people, falling below the market expectation of 0.106 million people.The previous period was downwardly revised by 0.223 million, with the smallest increase since 2020. Two hurricanes and a Boeing strike were contributing factors. According to the Bureau of Labor Statistics statement, while hurricanes may have impacted employment in certain industries, quantifying the impact on total national employment, work hours, and income is difficult. The bureau also noted that the response rate of business surveys useful for statistics is significantly below average.

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