Market Overview - The A-share major indices experienced an upward trend last week, although trading volume continued to decline [7][11] - Among the 31 Shenwan first-level industries, the communication, electronics, and comprehensive sectors performed relatively well [5][7] Macro Data Analysis - The National Bureau of Statistics reported that from January to October, the profits of industrial enterprises above designated size increased by 1.9% year-on-year, while profits in October decreased by 5.5% year-on-year [3][10] - In the cumulative year-on-year perspective, the mining industry saw a decline of 27.8%, while the manufacturing sector grew by 7.7%, and the electricity, heat, gas, and water production and supply industry grew by 9.5% [3][10] - In October, the year-on-year profit growth rates for upstream, midstream, and downstream industries were -12.0%, -4.8%, and -13.9%, respectively, with positive growth recorded in the computer communication electronics manufacturing, automotive manufacturing, and non-ferrous metal rolling industries [3][10] Stock Market Strategy Outlook - The market is currently in a phase of fluctuation, with low trading volume and various technical indicators showing weakness, although financing data has improved [4][11] - The expectation for a Federal Reserve interest rate cut in December has reached 80%, contributing to a rebound in the technology sector [4][12] - The upcoming Federal Reserve meeting on December 10 is expected to significantly impact market sentiment, with the current economic fundamentals and technology narratives remaining unchanged [4][12] - In the long term, the ongoing U.S.-China competition has established a baseline, with international capital markets beginning to question the U.S. government's governance capabilities and institutional credibility [6][12] - The trend of passive investment in public funds and the long-term investment strategies of insurance and brokerage firms are likely to strengthen, with significant stock holdings reported by major A-share insurance companies [6][12] Industry Focus - For defensive dividend sectors, it is recommended to maintain allocation ratios, with a short-term increase in market defensive tendencies likely [6][12] - The technology sector remains a key focus, particularly in areas such as AI, domestic computing power, commercial aerospace, and robotics, which are expected to have high industry prosperity and significant adjustment potential [6][12] - The internal demand and high prosperity sectors may require strong catalysts for market movements, with low valuation opportunities in certain electric new energy segments and specific mechanical and chemical industries becoming more prominent [6][12]