Core Insights - The Federal Reserve is facing internal dissent regarding its decision to cut interest rates, with some officials arguing that it is too early to ease measures against inflation [2][5][6] - The Fed's dual mandate of maintaining low inflation and high employment is creating conflicting pressures, complicating its decision-making process [3][5][6] Summary by Sections Federal Reserve's Decision - Three Federal Reserve officials expressed disagreement with the Federal Open Market Committee's (FOMC) recent decision to cut the benchmark interest rate by a quarter-point [2][6] - Kansas City Fed president Jeffrey Schmid voted to keep rates steady but was outvoted [2][3] Inflation and Employment Dynamics - Inflation has been above the Fed's target of 2% for over four years, with tariffs exacerbating the situation, which would typically prompt rate hikes [4][6] - Conversely, trade wars initiated by President Trump have created uncertainty, hindering job growth and prompting the Fed to lower rates to support employment [4][6] Implications for Economic Policy - The divisions within the FOMC are making interest rate movements less predictable, as members disagree on which issue—inflation or employment—should take precedence [5][6] - Fed Chair Jerome Powell acknowledged the "strongly differing views" among FOMC participants during the recent policy meeting [5]

Market Performance - On October 30, US stock indices collectively declined, with the Dow Jones Industrial Average falling by 0.23%, the S&P 500 down by 0.99%, and the Nasdaq Composite dropping by 1.57% [1] - Major tech stocks experienced significant losses, with Meta reporting its largest single-day drop in three years [1][3] - The Nasdaq Golden Dragon China Index fell by 1.88%, indicating a broader decline in Chinese concept stocks [1][4] Company-Specific Developments - Meta's third-quarter revenue was $51.242 billion, a 26% year-over-year increase, but net profit plummeted by 83% to $2.709 billion [3] - Tesla's stock dropped by 4.64% amid ongoing challenges with its autonomous taxi service rollout in Arizona and Nevada [3] - Amazon's stock surged over 12% in after-hours trading following a strong third-quarter report, with total revenue of $180.169 billion (up 13%) and net profit of $21.187 billion (up 38%) [3] - Apple's after-hours stock rose over 2% after reporting third-quarter revenue of $102.47 billion (up 7.9%) and net profit of $27.47 billion (up 86.4%), despite a 3.6% decline in revenue from Greater China [3] Chinese Stocks Performance - Chinese concept stocks generally fell, with notable declines including Xiaoma Zhixing down over 6%, and several others like Century Internet and Bilibili down over 5% [4] - New Oriental saw a rise of 3.91%, while other companies like Atour and Yikaitong also experienced gains [4]

Group 1: Market Overview - On October 30, US stock indices collectively declined, with the Dow Jones Industrial Average falling by 0.23%, the S&P 500 down by 0.99%, and the Nasdaq Composite dropping by 1.57% [1] - Major tech stocks experienced significant losses, with Meta reporting its largest single-day drop in three years [2] - The Nasdaq Golden Dragon China Index fell by 1.88%, indicating a broader decline in Chinese concept stocks [1][3] Group 2: Company Performance - Meta's third-quarter revenue was $51.242 billion, a 26% year-over-year increase, but its net profit plummeted by 83% to $2.709 billion [2] - Tesla's stock dropped by 4.64% amid ongoing challenges with its autonomous taxi service rollout [2] - Amazon's stock surged over 12% in after-hours trading following a strong third-quarter report, with total revenue of $180.169 billion (up 13%) and net profit of $21.187 billion (up 38%) [2] - Apple's after-hours stock rose over 2%, reporting third-quarter revenue of $102.47 billion (up 7.9%) and net profit of $27.47 billion (up 86.4%), although revenue in Greater China fell by 3.6% [2] Group 3: Chinese Stocks - The Nasdaq Golden Dragon China Index saw widespread declines among Chinese stocks, with notable drops including Pinduoduo and JD.com [3] - Specific stocks like Xiaoma Zhixing and Century Internet fell over 6% and 5%, respectively, while New Oriental saw a gain of 3.91% [3] Group 4: Economic Policy - The US Senate passed a resolution to terminate the comprehensive tariff policy implemented by former President Trump, which included tariffs ranging from 10% to 50% on various countries [4] - The resolution still requires approval from the House of Representatives, where previous attempts to overturn tariffs have faced opposition [4] Group 5: Federal Reserve Actions - The Federal Reserve lowered the federal funds rate target range by 25 basis points to between 3.75% and 4.00%, marking the second rate cut this year [5] - Treasury Secretary Yellen criticized the Fed for being "stuck in the past" and called for comprehensive reforms [5] - Market predictions indicate a 74.7% probability of another 25 basis point cut in December [5]

Market Overview - On October 30, US stock indices collectively declined, with the Dow Jones Industrial Average falling by 0.23%, the S&P 500 down by 0.99%, and the Nasdaq Composite dropping by 1.57% [1]. Technology Sector Performance - Major tech stocks experienced significant declines, with Meta reporting its largest single-day drop in three years, falling over 11% and reaching a new low since June. The company's Q3 revenue was $51.242 billion, a 26% year-over-year increase, but net profit plummeted by 83% to $2.709 billion [4]. - Other tech stocks also faced losses: Tesla dropped 4.64% amid challenges in its autonomous taxi service, Amazon fell over 3%, Microsoft down by over 2%, Nvidia decreased by 2%, and Netflix dropped over 1%. In contrast, Google rose by 2.45%, and Apple saw a slight increase [4]. Earnings Reports - Following the market close, several companies reported earnings that led to after-hours gains. Amazon's stock surged over 12% after reporting Q3 revenue of $180.169 billion, a 13% year-over-year increase, and a net profit of $21.187 billion, up 38%. AWS cloud revenue grew by 20%, exceeding expectations [4]. - Apple also saw an after-hours increase of over 2%, with Q3 revenue of $102.47 billion, a 7.9% year-over-year increase, and net profit of $27.47 billion, up 86.4%. However, revenue from Greater China unexpectedly declined by 3.6% [4]. Chinese Stocks Performance - Chinese stocks listed in the US generally fell, with the Nasdaq Golden Dragon China Index down by 1.88%. Notable declines included Xiaoma Zhixing down over 6%, Century Internet and Bilibili down over 5%, and several others including Baidu and Alibaba down over 3% [5].

Core Viewpoint - Federal Reserve Chair Jerome Powell has dampened expectations for a holiday rate cut, indicating that a December reduction is uncertain due to a cooling labor market and persistent inflation [1][2]. Summary by Sections Federal Reserve's Current Stance - The Federal Reserve has lowered its benchmark federal funds rate to a range of 3.75% to 4% as of October 29, but Powell emphasized that certainty regarding future cuts is lacking [2][5]. - Powell highlighted the ongoing government shutdown as a factor that hampers the Fed's access to crucial economic data, contributing to uncertainty in policy decisions [2][3]. Labor Market and Inflation - Powell noted signs of a cooling labor market and persistent inflation, which currently stands at 3%, above the Fed's target of 2% [6]. - He described the current situation as a "risk management" scenario, where both inflation and labor market conditions present challenges [6]. Committee Dynamics - There are strong disagreements among Federal Reserve voting members regarding the path forward, with some advocating for a cautious approach to assess potential risks to the labor market [4]. - Powell stated that a further reduction in the policy rate at the December meeting is not guaranteed, reflecting the divided views within the committee [4]. Market Reactions - Futures markets, which previously anticipated a rate cut, shifted their expectations following Powell's comments, now predicting that the Fed will maintain current rates [7]. - Some economists have adjusted their expectations for a rate cut at the end of the year, citing a less threatening inflation outlook due to various mitigating factors [8]. Future Projections - Despite a tempered outlook, some economists still expect a December rate cut, with a belief that additional cuts may be necessary next year to support growth [9].

Core Viewpoint - The Hong Kong Monetary Authority has lowered the base interest rate by 25 basis points to 4.25%, following the Federal Reserve's decision to reduce the federal funds rate target range by the same margin [1] Interest Rate Adjustment - The adjustment is based on a preset formula under the linked exchange rate system, aiming to maintain synchronization between Hong Kong dollar and US dollar interest rates [1] - Banks will make their own decisions regarding deposit and loan rates, considering factors such as interbank market liquidity, interbank offered rates, and their own funding cost structure [1] Market Impact - New economy sectors sensitive to interest rates are expected to benefit first from improved liquidity expectations [1] - The valuation of Hong Kong stocks is currently at a relatively low historical level, making stable dividend-paying stocks more attractive [1] - For instance, the Hong Kong Central Enterprises Dividend ETF (513910) has achieved a dividend yield of 5.70% over the past 12 months as of October 29 [1]

Group 1 - The Federal Reserve has lowered the federal funds rate target range by 25 basis points to 3.75%–4.00%, marking the second consecutive rate cut since September, aligning with market expectations [1] - The French National Assembly has approved a revision to the 2026 budget, proposing to increase the tax rate on digital revenues from companies like Amazon, Alphabet, and Meta from 3% to 6% [1] - Barclays Bank plans to issue panda bonds in China to raise 4 billion RMB, indicating a significant move by a major global bank into the Chinese bond market [1] Group 2 - The Reserve Bank of India is accelerating the repatriation of overseas gold reserves, having brought back nearly 64 tons of gold in the first six months of the fiscal year, with domestic gold reserves now exceeding 65%, nearly doubling from four years ago [2] - The Bank of Canada has lowered its benchmark interest rate by 25 basis points to 2.25%, marking the second consecutive rate cut in line with market expectations [3] - The Hong Kong Monetary Authority has reduced its benchmark interest rate by 25 basis points to 4.25% [4] - The Saudi Central Bank has lowered its repo rate by 25 basis points [5] - The Central Bank of Oman has cut its repo rate by 25 basis points [6] - The Central Bank of the UAE has reduced its benchmark rate by 25 basis points [7] - The Qatar Central Bank has lowered its deposit rate by 25 basis points [8] - The Central Bank of Bahrain has cut its overnight deposit rate by 25 basis points [9] Group 3 - The Dow Jones Industrial Average fell by 0.16% to 47,632 points, while the S&P 500 remained flat at 6,890.59 points, and the Nasdaq Composite rose by 0.55% to 23,958.47 points [10] - COMEX gold futures dropped by 1.04% to $3,941.7 per ounce, and COMEX silver futures decreased by 0.1% to $47.275 per ounce [11] - The main contract for U.S. oil rose by 0.35% to $60.36 per barrel, while Brent crude oil increased by 0.64% to $64.24 per barrel [12] Group 4 - The 2-year U.S. Treasury yield rose by 10.82 basis points to 3.5980%, the 5-year yield increased by 10.18 basis points to 3.7113%, the 10-year yield went up by 10.01 basis points to 4.0757%, and the 30-year yield rose by 8.53 basis points to 4.6252% [13] - The U.S. dollar index increased by 0.43% to 99.16, while the euro fell by 0.45% against the dollar to 1.1601 [13]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has lowered the base interest rate by 25 basis points to 4.25% following the Federal Reserve's decision to reduce the federal funds rate by 0.25% to a range of 3.75% to 4% [1] Summary by Relevant Sections - **Interest Rate Changes** - The HKMA's base interest rate is now set at 4.25%, reflecting a decrease of 25 basis points [1] - This adjustment aligns with the Federal Reserve's recent rate cut, which was anticipated by the market [1] - **Mechanism of Base Rate Calculation** - The base interest rate serves as the foundation for calculating the discount rate applicable to repurchase transactions conducted through the discount window [1] - Currently, the base rate is determined by taking the higher of either the lower limit of the current U.S. federal funds rate target range plus 50 basis points or the average of the 5-day moving average of overnight and 1-month Hong Kong Interbank Offered Rates (HIBOR) [1]

Core Viewpoint - The Federal Reserve, led by Chairman Jerome Powell, indicates that the U.S. economy is experiencing moderate expansion, but the government shutdown may temporarily hinder economic activity. The labor market is gradually cooling, with rising downside risks to employment, yet initial jobless claims remain low, suggesting a slow decline rather than a rapid downturn [1][2]. Economic Outlook - Powell expects the economic growth rate for the year to be around 1.6%, lower than the previous year. He emphasizes that there has been no significant deterioration across various economic sectors [2]. - The Fed's monetary policy remains moderately restrictive, with inflation slightly above target levels. The core personal consumption expenditure (PCE) is projected to be around 2.3% to 2.4%, while inflation excluding tariffs is only 0.5% to 0.6% above the 2% target [1][3]. Monetary Policy Adjustments - The Fed plans to end its balance sheet reduction on December 1, citing recent pressures in the money market that necessitate immediate adjustments. Powell notes that the benefits of continuing quantitative tightening (QT) are diminishing, and the Fed will maintain stability in the short term [3]. - Powell acknowledges that there is no zero-risk policy path, and the balance of risks has shifted. The recent rate cuts are steps toward a more neutral policy stance, but the decision for further rate adjustments in December remains uncertain due to data shortages caused by the government shutdown [2][4]. Market Reactions - Following Powell's statements, the dollar index rose by 0.60%, while the two-year Treasury yield surged to 3.59%. The stock market experienced a downturn as traders adjusted their expectations for a December rate cut, now estimated at 65%, down from 90% prior to the meeting [4][5]. - Analysts suggest that Powell's comments reflect internal tensions within the Fed regarding further rate cuts, especially with inflation remaining high. This has led to a temporary market reaction, as investors had anticipated more aggressive rate cuts to stimulate the economy [5][6].

Core Viewpoint - The Federal Reserve is anticipated to cut interest rates by 25 basis points, which is expected to stimulate economic activity and support market momentum heading into 2026 [1][3][4]. Economic Conditions - The current economic environment is characterized by declining energy, gasoline, and grocery prices, alongside lower mortgage rates, which the President attributes to the economy's performance rather than the Federal Reserve's actions [2]. - The White House is optimistic that cheaper borrowing will lead to increased spending and building activities [4]. Market Reactions - Wall Street is experiencing record highs, with the expectation that the rate cut will further boost market performance [1][4]. - The stock market has shown resilience, performing well even under restrictive monetary policies, suggesting that the anticipated rate cut could enhance this trend [5][6][24]. Impact on Small Businesses - The rate cut is viewed as beneficial for small businesses, potentially lowering borrowing costs and enabling expansion [5][10][12]. - There is a concern that small businesses may not be fully benefiting from advancements in AI compared to larger corporations, highlighting the importance of reduced borrowing costs for their recovery [10][12]. Federal Reserve's Strategy - The Federal Reserve's decision-making is under scrutiny, with criticisms regarding its slow response to economic conditions and the lack of comprehensive data due to the government shutdown [13][16][17]. - There is speculation about the potential for further rate cuts before the end of the year, depending on economic indicators [3][15]. Nvidia's Market Position - Nvidia has reached a market capitalization of $5 trillion, with significant projections for future orders and partnerships, indicating strong growth potential in the tech sector [37][39]. - The company's strategy includes investing in various sectors, which may position it as a leader in the ongoing technological revolution [39][42].