【Early Morning Report】Significant interest rate cut by the US, based on the inflation indicators of August = FRB officials. Optimistic mood strengthens after FOMC approval.
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The key points of this morning's first report are as follows.
● [Tokyo Stock Market Forecast Range] Domestic market closed (substitute holiday)
- The US significantly lowers interest rates, based on August inflation indicators = Federal Reserve Board (FRB) Director.
- FRB does not overreact to data = Philadelphia Federal Reserve Bank President.
● The Dow average has recovered in a small plus zone, with daily record highs in US stocks.
● Morgan Stanley: Short-term bearish memory chips, TSMC may be a 'big winner' compared to AI chips
moomoo news of individual stocks Evelyn
Market Overview
In the U.S. stock market on the 20th, both the Dow Jones Industrial Average and the Nasdaq started in the negative territory, but the Dow Jones Industrial Average rebounded into positive territory by a small margin at the close, setting a new record high on a closing price basis for consecutive days. The Nasdaq, although in the negative territory, has narrowed the degree of decline compared to earlier. The closing prices were: Dow Jones Industrial Average up 38.17 dollars at 42,063.36 dollars, Nasdaq Composite Index down 65.66 at 17,948.32, and S&P 500 down 11.09 at 5,702.55.
● [Tokyo Stock Market Forecast Range] Domestic market closed (substitute holiday)
- The US significantly lowers interest rates, based on August inflation indicators = Federal Reserve Board (FRB) Director.
- FRB does not overreact to data = Philadelphia Federal Reserve Bank President.
● The Dow average has recovered in a small plus zone, with daily record highs in US stocks.
● Morgan Stanley: Short-term bearish memory chips, TSMC may be a 'big winner' compared to AI chips
moomoo news of individual stocks Evelyn
Market Overview
In the U.S. stock market on the 20th, both the Dow Jones Industrial Average and the Nasdaq started in the negative territory, but the Dow Jones Industrial Average rebounded into positive territory by a small margin at the close, setting a new record high on a closing price basis for consecutive days. The Nasdaq, although in the negative territory, has narrowed the degree of decline compared to earlier. The closing prices were: Dow Jones Industrial Average up 38.17 dollars at 42,063.36 dollars, Nasdaq Composite Index down 65.66 at 17,948.32, and S&P 500 down 11.09 at 5,702.55.
Top News
Substantial rate cut by the U.S., August inflation indicators are the basis=FRB Director
On the 20th, Christopher Waller, a director of the Federal Reserve Board (FRB), explained that the reason for supporting a more substantial cut of 0.5 points at this week's meeting was not due to concerns about a weakening labor market, but based on the indicators released during the (period when FRB officials refrain from making public statements) blackout period. The indicators for August.Inflationexplained it.
The FRB should not overreact to the data. - President of the Federal Reserve Bank of Philadelphia
In a speech on the 20th, Patrick Harker, the president of the Federal Reserve Bank of Philadelphia, stated that central banks around the world need to have a comprehensive understanding of the situation and should not overreact to unstable economic indicators. He emphasized the need for a more long-term approach to monetary policy that does not overly rely on specific datasets.
Qualcomm makes acquisition proposal to Intel, according to sources.
Top U.S. semiconductor company. $Qualcomm (QCOM.US)$It is the same industry. $Intel (INTC.US)$proposed an acquisition. There is a possibility that this could be one of the largest and most influential acquisitions in recent years. Multiple sources familiar with the matter revealed that Intel's market capitalization is about $90 billion (approximately 13 trillion yen). With over 50 years of history, Intel is facing its largest crisis due to its poor performance. Insiders have warned that the acquisition proposal is far from being agreed upon.
Morgan Stanley: Short-term bearish on memory, TSMC may be the "big winner" over AI chips
Currently, AI is undoubtedly the main driving force behind the growing chip market. $Taiwan Semiconductor (TSM.US)$Benefiting from the outperformance of the inventory cycle, it is expected to maintain an average profit growth of 26% in the next four quarters. In addition, the memory chip industry is entering a decline cycle, and companies such as Hynix are facing pressure.
Outlook for the US stock market: Optimism is growing after the FOMC meeting, with attention on the Russell 2000.
Next week's US stocks are expected to continue to perform well. The market after the FOMC meeting is filled with optimism, as expectations of a soft landing are strengthening. The VIX index, which indicates investor anxiety, has dropped to 16.15 points, the lowest level since September 2. It is expected that financial easing will continue to support the economy and promote inflow of funds into the stock market, as it has safely passed the first interest rate cut in four and a half years. As a result, the Dow Jones Industrial Average and the S&P 500 are gradually reaching new all-time highs, and the Nasdaq is also likely to be conscious of its all-time high soon. However, as the presidential election on November 5 approaches, it is assumed that the celebratory mood will not last long.
Foreign exchange
Substantial rate cut by the U.S., August inflation indicators are the basis=FRB Director
On the 20th, Christopher Waller, a director of the Federal Reserve Board (FRB), explained that the reason for supporting a more substantial cut of 0.5 points at this week's meeting was not due to concerns about a weakening labor market, but based on the indicators released during the (period when FRB officials refrain from making public statements) blackout period. The indicators for August.Inflationexplained it.
The FRB should not overreact to the data. - President of the Federal Reserve Bank of Philadelphia
In a speech on the 20th, Patrick Harker, the president of the Federal Reserve Bank of Philadelphia, stated that central banks around the world need to have a comprehensive understanding of the situation and should not overreact to unstable economic indicators. He emphasized the need for a more long-term approach to monetary policy that does not overly rely on specific datasets.
Qualcomm makes acquisition proposal to Intel, according to sources.
Top U.S. semiconductor company. $Qualcomm (QCOM.US)$It is the same industry. $Intel (INTC.US)$proposed an acquisition. There is a possibility that this could be one of the largest and most influential acquisitions in recent years. Multiple sources familiar with the matter revealed that Intel's market capitalization is about $90 billion (approximately 13 trillion yen). With over 50 years of history, Intel is facing its largest crisis due to its poor performance. Insiders have warned that the acquisition proposal is far from being agreed upon.
Morgan Stanley: Short-term bearish on memory, TSMC may be the "big winner" over AI chips
Currently, AI is undoubtedly the main driving force behind the growing chip market. $Taiwan Semiconductor (TSM.US)$Benefiting from the outperformance of the inventory cycle, it is expected to maintain an average profit growth of 26% in the next four quarters. In addition, the memory chip industry is entering a decline cycle, and companies such as Hynix are facing pressure.
Outlook for the US stock market: Optimism is growing after the FOMC meeting, with attention on the Russell 2000.
Next week's US stocks are expected to continue to perform well. The market after the FOMC meeting is filled with optimism, as expectations of a soft landing are strengthening. The VIX index, which indicates investor anxiety, has dropped to 16.15 points, the lowest level since September 2. It is expected that financial easing will continue to support the economy and promote inflow of funds into the stock market, as it has safely passed the first interest rate cut in four and a half years. As a result, the Dow Jones Industrial Average and the S&P 500 are gradually reaching new all-time highs, and the Nasdaq is also likely to be conscious of its all-time high soon. However, as the presidential election on November 5 approaches, it is assumed that the celebratory mood will not last long.
Foreign exchange
Major market events
Source: Dow Jones, MINKABU, Bloomberg, moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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