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On October 16, 2023, major U.S. stock indices experienced significant gains, with the S&P 500 rising by 1.07%, the Dow Jones increasing by 1.12%, and the Nasdaq 100 climbing 1.30%. Notably, December E-mini S&P futures rose 1.12%, while December E-mini Nasdaq futures jumped 1.32%. Market sentiment improved following President Trump’s comments regarding U.S.-China trade relations and optimism around upcoming Q3 earnings.
This week, the U.S. and China are scheduled to conduct talks in Malaysia in preparation for a meeting between President Trump and Chinese President Xi Jinping later this month. Additionally, China’s Q3 GDP experienced a 1.1% quarter-over-quarter increase, exceeding expectations, while the jobless rate fell to 5.2%. In contrast, the ongoing U.S. government shutdown may lead to significant furloughs, with estimates of 640,000 federal workers affected.
The market anticipates a 99% likelihood of a 25 basis point rate cut during the next FOMC meeting on October 28-29, with investors keeping an eye on earnings reports as 85% of S&P 500 companies that have reported so far surpassed forecasts.
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