Global Surge
On the evening of the 19th, U.S. stocks maintained their upward momentum in the early session on Thursday, with the Dow Jones and S&P indices setting new intraday highs. The Federal Reserve's first interest rate cut in four years has boosted risk assets.
The Dow Jones Industrial Average rose by over 400 points, while the Nasdaq Composite Index increased by nearly 2%.
The latest economic data shows that the number of first-time unemployment benefit claimants in the United States last week decreased by 12,000 to 219,000, reaching the lowest level since May this year, with an estimated 230,000. This indicates that despite a slowdown in hiring, the labor market remains healthy. This partly confirms that the Federal Reserve is working towards a soft landing for the economy.
Large technology stocks surged under the stimulus of the interest rate cut.
Tom Lee, Head of Research at Fundstrat Global Advisors, said that this Federal Reserve interest rate cut cycle has laid the foundation for the market to perform strongly in the next month or three months.
Adam Crisafulli, founder of Vital Knowledge, said, "As the market digests the Federal Reserve's substantial interest rate cut, the stock market will explode upward." He predicts that U.S. stocks can continue to rise until the U.S. elections.
Fawad Razaqzada from City Index and Forex.com said, "Despite some fluctuations after the Federal Reserve's interest rate cut, the bull trend of the S&P 500 index remains intact. The Federal Reserve's decision to cut interest rates by 50 basis points was widely welcomed by investors. This move is seen as a bold but necessary measure to alleviate economic concerns without sending a panic signal similar to the 2008 financial crisis."
In addition, Chinese assets surged, with the NASDAQ Golden Dragon Index rising by more than 3%.
European stock markets rose collectively, with France surging by more than 2%!NDRC Announces Positive Measures
On September 19th, the National Development and Reform Commission (NDRC) held a press conference for the month of September. At the conference, Jin Xiandong, Director of the Policy Research Office and spokesperson for the NDRC, responded to hot topics such as the current economic operation situation, stimulating the vitality of private investment, and ensuring the price stability and supply of livelihood goods during the National Day holiday.
Jin Xiandong stated that they will strengthen policy pre-research and reserve, and introduce a batch of incremental policy measures that are operable, effective, and perceptible to the public and enterprises in a timely manner.
Jin Xiandong mentioned that a new batch of significant foreign-funded projects with leading and driving effects will be launched in due course, further consolidating the basic position of foreign investment. Currently, the 144-hour visa-free transit policy has been expanded to 37 ports, and the policy facilitating the travel of tourists and international merchants from various countries has been effectively implemented.
Jin Xiandong indicated that the NDRC will improve the implementation and promotion mechanism, and cooperate with relevant departments to study and propose specific policy measures such as household registration system reform, providing basic public services based on the place of residence, compulsory education for children of migrants, and accelerating the construction of affordable housing.
Jin Xiandong pointed out that in the next step, the NDRC will continue to actively create conditions and remove access barriers. On the premise of fully respecting the investment intentions of enterprises, they will adhere to the principles of fairness, openness, and justice to attract more private capital to participate in major project constructions such as nuclear power and railways.