Zhong Guo Ji Jin Bao·2025-09-18 16:18Market Performance - The U.S. stock market reached a new historical high following the Federal Reserve's interest rate cut and signals of further cuts to come, with the Nasdaq rising nearly 1% and the S&P 500 increasing by about 0.5% [2][3] - Major technology stocks performed strongly, with Nvidia's investment of $5 billion in Intel leading to a nearly 30% surge in Intel's stock, marking its largest single-day gain in nearly 40 years [3][4] Federal Reserve Actions - The Federal Reserve cut the benchmark interest rate by 25 basis points and indicated two more cuts are expected this year to support the job market, which has driven bullish sentiment in the stock market [4][5] - Fed Chairman Jerome Powell described the rate cut as "risk management," dampening some investors' expectations for a long-term easing cycle [5] Analyst Insights - Analysts expect that with the declining interest rates, investors will refocus on fundamentals, including regulatory easing, corporate earnings, and a recovering IPO market, which could benefit large tech and financial stocks [6] - In a low-interest-rate environment, large tech stocks typically outperform, while the financial sector may benefit from increased merger activity and mortgage business [6] Chinese Stocks - Chinese stocks faced a downturn, with the China concept stock index declining by approximately 2% [7]