To The Moon

Fed rate cut boosts Wall Street; Chinese stocks surge as market anticipates government may accelerate stimulus measures.

🇺🇸 S&P 500: +0.75% 📈

🇺🇸 Nasdaq: +1.51% 📈

🇪🇺 Stoxx 600: +0.66% 📈

🇯🇵 Nikkei 225: -0.25% 📉

🇭🇰 Hang Seng: +2.10% 📈

🇨🇳 CSI 300: +3.04% 📈

🇸🇬 Straits Times Index: +1.98% 📈

U.S. stock market performed strongly, with the S&P 500 and Nasdaq rising 0.8% and 1.5%, respectively, as the market welcomed further easing from the Federal Reserve, aligning with expectations of a broad market rebound and continuing the optimism from Trump's victory.

For the week ending November 2, U.S. unemployment claims increased by 3,000 to 221,000, slightly above the expected 223,000 but lower than the previous 218,000. This reassured the market, showing that labor strength remains stable despite hurricanes and strikes that nearly stalled job growth in October.

Asia-Pacific markets rebounded, with the Hang Seng Index and CSI 300 rising 2.1% and 3.0%, respectively. Market optimism grew that the government would take more proactive measures and roll out fiscal stimulus plans earlier to address any backlash from U.S. export policies against China.

💡 Upcoming Events: 💡

By the end of the week, we will see the U.S. Federal Funds Rate decision, FOMC statement, U.S. preliminary Michigan Consumer Sentiment Index, Michigan Inflation Expectations, Malaysia industrial production YoY, and unemployment rate.

💡 Key Things to Know Today: 💡

1. The Fed cut rates by 25 basis points as expected, and the possibility of another rate cut in December remains high. Market expectations for 2025 are still in line with the Fed's guidance of a 100 basis point cut, bringing rates down to the 3.75%-4% range.

2. Powell reassured the media that he will not step down during Trump's presidency, and that dismissing or demoting any Federal Reserve Board leaders, including himself, would be “legally not allowed.” He stated that the U.S. presidential election would not affect the Fed's short-term policy decisions and noted that it is too early to determine the timing or content of any potential fiscal policy changes.

Powell

3. Taiwan Semiconductor Manufacturing Company (TSMC) $Taiwan Semiconductor Manufacturing(TSM)$ , which has garnered attention after Trump's victory, stated that its investment plans in the U.S. will remain unchanged. Trump had criticized Taiwan for allegedly stealing U.S. semiconductor business during his campaign.

TSMC

4. Bank Negara Malaysia noted that narrowing yield differentials due to more aggressive policy easing in developed economies would benefit the ringgit, as Malaysia is likely to keep its policy rates unchanged given favorable economic fundamentals. The final OPR review for the year is expected to maintain the rate at 3%.

Bank Negara Malaysia

5. Malaysia's IPO market, despite a series of lackluster debuts in October, with first-day gains of less than 8%, still sees strong interest from issuers, and local sentiment continues to support liquidity in the stock exchange.

Bursa Malaysia

✅ Key Takeaways:

The latest Fed rate cut has already been fully priced in by the market. Combined with weak employment data from last week, investors are now turning their attention to upcoming Fed comments to guide the direction of monetary policy.

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