To The Moon

Strong service sector PMI data signals a resilient U.S. economy, while Chinese stocks surged due to government measures attracting foreign investment.

🇺🇸 S&P 500: +1.23% 📈

🇺🇸 Nasdaq: +1.43% 📈

🇪🇺 Stoxx 600: +0.06% 📈

🇯🇵 Nikkei 225: +1.11% 📈

🇭🇰 Hang Seng: +2.14% 📈

🇨🇳 CSI 300: +2.53% 📈

🇸🇬 Straits Times Index: +0.27% 📈

U.S. stocks cheer: The S&P 500 and Nasdaq Composite both surged 1.2% and 1.4%, respectively, as strong service sector momentum eased recession fears and drove broad market gains.

U.S. ISM Services PMI accelerated from 54.9 last month to 56.0, the highest level since August 2022, exceeding the forecast of 53.8.

Asia-Pacific markets rise: The Hang Seng Index and CSI 300 rose 2.1% and 2.5%, respectively, with the former hovering near a 3-month high. This was driven by robust service sector expansion, growing at its fastest pace since July, and further measures to attract foreign investors, expected to boost local stock liquidity and valuations.

💡 Upcoming Events: 💡

Wednesday: U.S. services PMI final, Eurozone services PMI final

Thursday: U.S. unemployment claims

By the end of the week: U.S. Federal Funds Rate, FOMC statement, U.S. preliminary Michigan Consumer Sentiment Index, Michigan Inflation Expectations and unemployment rate.

💡 Key Things to Know Today: 💡

1. U.S. trade deficit widened by 19.2% YoY to -$84.4 billion, the highest level since April 2022, with a revised August deficit of $70.8 billion. Exports fell, while companies increased imports to meet strong domestic demand, anticipating higher tariffs. Investments in data centers and semiconductors supported capital goods imports, while robust consumer demand led retailers to increase inventory.

US Trade Deficit

2. Super Micro Computer $SUPER MICRO COMPUTER INC(SMCI)$  plunged 14% in after-hours trading after the company forecasted sales between $5.5 billion and $6.1 billion, lower than the expected $6.79 billion, and still hasn't finalized the financial report for the previous fiscal year. The company missed the deadline for submitting its annual report in August, raising concerns about its governance and transparency.

SMCI

3. China's local governments are doubling efforts to meet their economic growth targets for the year in the final quarter, urging officials to accelerate investment, boost consumption, and expand foreign trade, as the window of opportunity narrows. A statement from the committee called for officials to adopt a“no excuse attitude and“cherish every second.”

4. Taiwan's Foxconn $Foxconn Technology Co., Ltd.(FXCOF)$  , the world's largest contract electronics manufacturer and Apple's $Apple(AAPL)$   biggest iPhone assembler, issued a positive earnings forecast, with October revenue rising 8.59% YoY to a record high of TWD 804.8 billion. The company expects both quarterly and annual growth, with more details likely to be closely watched.

Foxconn

✅ Key Takeaways:

Election day trading remained relatively calm. As trading continued, early trends linked to the "Trump trade" (such as rising U.S. Treasury yields and gains in Trump media $TRUMP MEDIA & TECHNOLOGY GROUP CORP(DJT)$   and tech stocks) started to reverse, while cryptocurrency successfully maintained its gains.

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