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reporter of every economic news: ye feng editor of every economic news: xiao ruidong

last week, the federal reserve announced a 50 basis point cut in the benchmark interest rate, marking the official launch of the first easing cycle of u.s. monetary policy since march 2020. the move is aimed at preventing signs of weakness in the u.s. economy and labor market and pushing inflation down further. fed chairman powell said that the u.s. economy is currently in good shape, and the decision to cut interest rates is aimed at maintaining this trend and enabling policies to flexibly respond to economic changes.

driven by this, u.s. stocks rose strongly last thursday. the dow jones industrial average broke through the 42,000 mark for the first time, up 1.26%. the s&p 500 also rose 1.70%. the nasdaq rose 2.51%. all three major stock indexes recorded gains for the second consecutive week.

some market analysts believe that the current interest rate level is still too high, and it is expected that after the fed cuts interest rates by 50 basis points this time, the central bank will cut interest rates at least twice more. evercore isi data shows that over the past few decades, in non-recessionary periods, the s&p 500 index has risen by an average of 14% within six months after entering a rate cut cycle.

in the morning trading today, the nasdaq index etf (159501) which tracks the nasdaq 100 index jumped up and opened up 0.53%, and continued to trade at a premium during the session. investors without stock accounts can also use the nasdaq index etf link fund (016533) to plan for the long-term bull market opportunities in the us technology sector.

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