Overnight U.S. Stocks | S&P 500 Index Approaches 6000 Points, Trump Media & Technology Group Falls 22.9%

Zhitong Finance learned that on Thursday, all three major indices reached intraday historical highs. The Nasdaq closed above 19,000 points for the first time, and the S&P 500 index approached the 6,000-point mark. The Federal Reserve lowered interest rates by 25 basis points as expected.

[U.S. Stocks] As of the close, the Dow Jones Industrial Average fell slightly, closing at 43,729.34 points; the Nasdaq rose by 285.99 points, an increase of 1.51%, closing at 19,269.46 points; the S&P 500 index rose by 44.06 points, an increase of 0.74%, closing at 5,973.10 points. Trump Media & Technology Group (DJT.US) fell by 22.9%, Tesla (TSLA.US) rose by 2.9%, and Nvidia (NVDA.US) rose by 2%. The Nasdaq Golden Dragon China Index rose by 3.5%, XPeng (XPEV.US) rose by 15%, Bilibili (BILI.US) rose by 8.8%, and JD.com (JD.US) rose by over 6.5%.

[European Stocks] The German DAX 30 index rose by 1.7%, the UK FTSE 100 index fell by 0.32%, the French CAC 40 index rose by 0.76%, the Euro Stoxx 50 index rose by 1.07%, the Spanish IBEX 35 index rose by 0.65%, and the Italian FTSE MIB index rose by 0.12%.

[Asia-Pacific Stock Markets] The Nikkei 225 index fell by 0.25%, the Jakarta Composite Index in Indonesia fell by 1.9%, and the KOSPI index in South Korea rose slightly.

[Cryptocurrency] Bitcoin rose by 0.07%, priced at 75,646.1; Ethereum rose by over 5.7%, priced at $2,878.58 per coin.

[Crude Oil] The price of West Texas Intermediate (WTI) crude oil futures for December delivery on the New York Mercantile Exchange rose by 67 cents, an increase of 0.93%, closing at $72.36 per barrel. The settlement price of Brent crude oil futures for December delivery on the Intercontinental Exchange rose by 71 cents, an increase of 0.95%, closing at $75.63 per barrel.

[Gold] COMEX gold futures rose by 1.45%, priced at $2,715.00 per ounce. COMEX silver futures rose by 2.73%, priced at $32.115 per ounce.

[Metals] London metals closed higher, with copper rising by 3.89%, nickel rising by 2.48%, zinc rising by 3.37%, and aluminum rising by 3.63%.

[Macroeconomic News]

The asset size of U.S. money market funds rises to $6.59 trillion, a record high. The asset size of U.S. money market funds has reached a record high as investors continue to flock to these assets seeking relatively high returns amid the Federal Reserve entering a rate-cutting cycle. According to data from the Investment Company Institute, approximately $79.5 billion flowed into U.S. money market funds in the week ending November 6, bringing the total asset size to $6.59 trillion. The inflow of funds comes just before the Federal Reserve's decision on Thursday, where it lowered rates by 25 basis points as expected. Even after the Federal Reserve cut rates by 50 basis points in September, money market funds continued to attract new inflows, as their yields are higher than other investment tools, especially bank deposits. Compared to banks, money market funds typically transmit the impact of Federal Reserve rate cuts more slowly In addition, investors such as corporate treasurers are often more willing to outsource cash management rather than handle it themselves to generate returns. Many market participants believe that the scale of such assets reaching $7 trillion is just a matter of time.

U.S. wholesale inventories decline more than expected in September. According to data from the U.S. Department of Commerce, U.S. wholesale inventories fell slightly more than expected in September. Based on the adjusted data released on Thursday, wholesale inventories decreased by 0.2% month-on-month in September, offsetting a 0.2% increase in August, while the market had expected a decline of 0.1%. The data indicated that the decline in inventories was due to a 0.5% drop in durable goods inventories, while non-durable goods inventories rose by 0.3%.

Federal Reserve cuts interest rates by 25 basis points as expected, dropping "more confident" language. According to IFR, a media outlet under Reuters, as widely anticipated by the market, the Federal Reserve lowered the target range for the federal funds rate by 25 basis points to 4.50%-4.75% and made some modifications to its statement. Although the overall outlook they stated remained unchanged, as they continued to assert that the economic outlook is uncertain, they dropped a phrase indicating they were "more confident that inflation is sustainably moving toward the target."

Federal Reserve's balance sheet falls below $7 trillion mark. The total size of the Federal Reserve's balance sheet has fallen below $7 trillion for the first time since August 2020, indicating that the Fed has reduced its balance sheet by about $2 trillion in this round. The Fed previously stated in its latest announcement that it would maintain the pace of balance sheet reduction, which involves a monthly reduction of $25 billion in U.S. Treasuries and $35 billion in MBS.

U.S. money market fund assets rise to $6.59 trillion, a record high. The assets of U.S. money market funds have reached a record high as investors continue to flock to these assets seeking relatively high returns in the face of the Fed entering a rate-cutting cycle. Data released by the Investment Company Institute (ICI) showed that for the week ending November 6, approximately $79.5 billion flowed into U.S. money market funds, bringing the total asset size to $6.59 trillion. The inflow of funds came just before the Fed's decision on Thursday, where it cut rates by 25 basis points as expected.

Powell takes a stand: I won't resign even if Trump pressures me. At the Federal Reserve's press conference, Chairman Powell stated clearly that if "President-elect" Trump asked him to leave, he would not resign. Previously, CNN reported that a senior advisor to Trump revealed that Trump might allow Powell to complete his remaining term. Federal Reserve watchers had speculated that if Trump forced Powell to resign, Powell would step down before his term ends in May 2026. However, Powell's response left no doubts for the market; he intends to serve until the end of his term. Analysts noted that Powell was previously a lawyer and is very firm against any political threats facing the Federal Reserve. He is clearly prepared to withstand any political pressure they may face. Some analysts also suggested that it remains to be seen whether Trump himself will respond to Powell's comments that the president does not have the authority to dismiss the Fed chair or vice chair The wealth of the world's top ten billionaires surged to a record high after Trump's victory. Wednesday was not only a good day for Trump, but also a historic day for the wealth of the ten richest people in the world. The world's richest person and one of Trump's most loyal supporters, Elon Musk, saw his wealth increase by $26.5 billion to $290 billion. Amazon founder Jeff Bezos's wealth grew by $7.1 billion after his newspaper, The Washington Post, announced it would not endorse Harris. Larry Ellison, co-founder of Oracle and another supporter of Trump, saw his wealth increase by $5.5 billion on Wednesday. Other beneficiaries included former Microsoft executives Bill Gates and Steve Ballmer, former Google executives Larry Page and Sergey Brin, and Warren Buffett of Berkshire Hathaway. According to statistics, the total wealth of the ten richest people in the world increased by $64 billion, setting a record for daily growth.

【Stock News】

Intel (INTC.US) CEO bought company shares before Trump's victory, now showing a 15% increase. Intel CEO Pat Gelsinger "voted" for his own company on U.S. election day. On November 4, Gelsinger purchased 11,150 shares of Intel stock for $251,200, at an average price of $22.53 per share. According to a form he submitted to the U.S. Securities and Exchange Commission, he currently holds 105,033 shares of Intel stock in his personal account. He also holds 540,840 shares through a trust. Reports indicate that he bought the shares on the open market before the first polling stations opened for the U.S. election, well before the news of Trump's victory over Harris was announced. Intel's stock, along with the three major U.S. stock indices, surged afterward. The stock's recent trading price was $25.97, reflecting a 15% increase compared to the shares Gelsinger purchased earlier.

HSBC (HSBC.US) executive: The first round of layoffs will occur in a few weeks, mainly focused on senior positions. Michael Roberts, head of HSBC's newly established Global Wholesale Banking division, stated that the bank plans to complete its ongoing restructuring "very quickly" and may announce the first round of layoffs in a few weeks. The CEO of corporate and institutional banking and head of Western markets said that the layoffs will focus on senior positions, and the restructuring plan announced last month by CEO Noel Quinn will be completed in a "thoughtful manner."

Boeing (BA.US) is set to resume production of the 737 MAX, with the FAA stating it will enhance oversight. The Federal Aviation Administration (FAA) announced that Boeing's 737 MAX production will resume as Boeing workers have ended a seven-week strike, and the agency will enhance its oversight of Boeing. The agency stated that FAA Administrator spoke with Boeing CEO David Calhoun this week and emphasized the importance of using a safety risk management system when resuming production. The FAA noted that as Boeing begins to implement its return-to-work plan, the agency will further strengthen targeted oversight. Boeing has not yet disclosed when it will resume production