• October 4, 2024

U.S. Stock Indices Open Higher Following Strong September Jobs Data

According to BlockBeats, on October 4, the release of stronger-than-expected September non-farm payroll data led to a positive opening for the three major U.S. stock indices. The Dow Jones Industrial Average opened with a 0.56% increase, the S&P 500 index rose by 0.76%, and the Nasdaq Composite Index saw a 1.2% gain.

  • October 4, 2024

U.S. September Job Growth Accelerates, Reducing Need for Major Fed Rate Cuts

According to BlockBeats, U.S. job growth accelerated in September, diminishing the necessity for significant rate cuts by the Federal Reserve in its remaining two meetings this year. The U.S. Department of Labor's Bureau of Labor Statistics released a report on Friday indicating that non-farm payrolls increased by 254,000 in September, following an upward revision to 159,000 in August. Federal Reserve Chairman Jerome Powell recently countered investor expectations of a 50 basis point rate cut in November, stating that the committee does not feel an urgency to lower rates swiftly.

  • October 4, 2024

U.S. September Nonfarm Payroll Report to Be Released Amid Fed Rate Cuts

According to Odaily, the United States will release its September nonfarm payroll report on Friday, October 4, at 20:30 UTC+8. This report is significant as it is the first since the Federal Reserve opened the door to rate cuts with a 50 basis point reduction. It is also one of the two nonfarm payroll data releases before the November meeting. With inflation receding, the performance of the job market has become the Federal Reserve's primary concern.A Reuters survey indicates that nonfarm payrolls are expected to increase by 140,000 in September, significantly lower than the average monthly increase of 202,000 over the past 12 months. The unemployment rate is anticipated to remain unchanged at 4.2%. Despite the Federal Reserve's rate hikes, the U.S. economy has shown remarkable resilience, avoiding the widely predicted recession. However, the job market has gradually lost momentum. From June to August, the average monthly net increase in new jobs was only 116,000, the lowest three-month average since mid-2020.Last month, the Federal Reserve cut rates by 50 basis points to a range of 4.75%-5.00%, marking the first rate cut since 2020. This move aimed to alleviate growing concerns about the health of the labor market. Federal Reserve Chairman Jerome Powell stated on October 1 that he does not want the job market to continue cooling. Analysts expect the Federal Reserve to cut rates again in November and December, though the extent of these cuts remains uncertain. Powell mentioned that if the economy performs as expected, there would be two more 25 basis point rate cuts this year.

  • October 4, 2024

Federal Reserve's Losses Surpass $200 Billion

According to Odaily, the Federal Reserve's losses have exceeded the $200 billion mark this week, as reported by data released on Thursday. The Fed's report indicates that as of Wednesday, its so-called remittances to the Treasury stood at a negative $201.2 billion. This figure represents a book loss, but Fed officials have emphasized that it will not impair their ability to conduct monetary policy.Chicago Fed President Austan Goolsbee reiterated on Thursday that interest rates need to be 'significantly' lowered next year. With the Fed's recent 50 basis point rate cut and the prospect of further easing, the pace of future losses may slow, as the interest expenses required to maintain the rate target will decrease. However, before the Fed can resume returning cash to the Treasury, it must effectively repay deferred assets, a process that could take several years.

  • October 4, 2024

Active U.S. Funds Underperform Market Due to Low Nvidia Allocation

According to Odaily, active U.S. funds have not outperformed the market this year, with a key factor being their underweight position in Nvidia. Despite Nvidia's popularity on Wall Street, many large investors remain cautiously optimistic about the stock. Bank of America Global Research analyst Vivek Arya and his team recently conducted a quarterly review of semiconductor stock holdings in active funds. The findings revealed that although Nvidia is the most held semiconductor stock in active funds, with a holding rate of approximately 70%, its relative weight is still considered 'low.' Arya noted that Nvidia's relative weight is 0.99 times, significantly lower than the top 16 peers in the information technology and communication services sectors, even though Nvidia's sales growth potential could be more than five times that of these companies. Companies with higher relative weights than Nvidia include Meta, Salesforce, Microsoft, and Alphabet. In the semiconductor industry, companies like Applied Materials, KLA, and Micron Technology also have higher relative weights.