Preview of US Stock Market | Futures of three major stock indices all rose, heavyweight impact of the Federal Reserve interest rate decision approaching.

Pre-market Market Trends 1. Before the market opened on September 18 (Wednesday), futures for the three major US stock indices rose. As of the time of drafting, Dow Jones futures were up 0.13%, S&P 500 index futures were up 0.16%, and Nasdaq futures were up 0.21%. 2. As of the time of drafting, the Germany DAX index was unchanged, the UK FTSE 100 index was down 0.68%, the France CAC 40 index was down 0.49%, and the Europe Stoxx 50 index was down 0.39%. 3. As of the time of drafting, WTI crude oil was down 1.14% at $69.16 per barrel. Brent crude oil was down 1.07% at $72.91 per barrel. Market News Preview of the Fed interest rate decision: In addition to the first rate cut, what other important information should be noted? The Fed will announce its interest rate decision at 2 a.m. Beijing time on Thursday. The meeting is full of unusual mystery. While the market collectively agrees that the Fed will cut rates, there is still intense debate over how much the policymakers will cut rates whether to follow the traditional 25 basis points cut or take a more aggressive first step with a 50 basis points cut. In addition to the debate over the rate cut of 25 or 50 basis points, this meeting is expected to include other important information such as the FOMC Summary of Economic Projections (SEP), providing unofficial forecasts on unemployment, Gross Domestic Product (GDP) and inflation, as well as the highly anticipated dot plot policymakers will provide forecasts on future rate movements. Additionally, Fed Chair Powell's speech during the press conference after the rate decision as well as any signals he may convey will also be closely watched by the market. JP Morgan CEO: Fed rate cut impact limited, more concerned about political conflicts at GEO Group Inc. Jamie Dimon, CEO of JP Morgan, stated that whether the Fed cuts rates by 25 or 50 basis points, it "will not have a dramatic impact." Dimon said, "they need to do it," but "it's just not that important when the Fed raises or lowers rates, because there's still the real economy underneath." Dimon previously expressed that he doesn't think it's as important as others do, citing ongoing economic uncertainties and inflation pressures. Dimon has been warning for over a year that inflation may be trickier than investors expect, and in his annual letter to shareholders in April, he wrote that his company was prepared for rates of 2% to 8% or higher. Dimon reiterated that political issues at GEO Group Inc (including wars in Ukraine and the Middle East) are his biggest concern. He stated, "Its the most important issue Ive come across since Ive been working. Expectations of rate cut heating up, US bonds rise for five months, will fragile rally be shattered by Fed rate decision? US bonds have risen for five consecutive months, with short-term yields sensitive to Fed policy pushed to the lowest level in two years. The two-year Treasury yield, sensitive to policy changes, has dropped significantly from near 5% at the end of April to nearly 3.5% this week, its lowest since September 2022, due to rising expectations of a Fed rate cut amidst easing price pressures and signs of weakness in the labor market. Bond investors betting on the Fed's first rate cut in four years are about to find out if their trades are correct. Despite the Fed holding its most uncertain policy meeting since 2007, the number of traders betting on a significant rate cut is still at a record high. Therefore, if Fed officials ultimately choose a more moderate 25 basis points rate cut, all traders betting on a significant cut will face huge losses. Some market participants believe that the bond market's expectations for Fed rate cuts for this week and next year have gone too far. Bridgewater Founder: Fed's 25 basis points rate cut is the "right move" for bondholders. Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, stated that from the overall situation of the US economy, the Fed may make a slight rate cut this week. Dalio said, "The Fed has to keep rates high enough for the creditors to get a real return and not so high that it causes trouble for the debtors." He stated, "Whether it's 25 basis points or 50 basis points, if you look at the big picture, 25 basis points is the right thing to do. If you see more troubles in the mortgage area affecting more people, there might be a need for a 50 basis points cut." Dalio also said that in the long run, the Fed's move this week "doesn't make a difference." "I think its a silly bet - 25 or 50 basis points," he added, saying that policymakers ultimately need to keep real interest rates low to be able to pay off growing debt. Goldman Sachs Group, Inc.: Gold price will drop if Fed only cuts 25 basis points, but will eventually rebound to new highs. Goldman Sachs Group, Inc. reiterated its optimistic outlook on gold prices, citing strong central bank demand and the upcoming Fed rate cut at this week's policy meeting. Analysts at Goldman Sachs Group, Inc. stated that if the Fed chooses to only cut rates by 25 basis points, gold prices may face setbacks in the short term. However, with the help of increased funds flowing into gold-supported ETFs, gold will rebound to record levels. Analysts Lina Thomas and Daan Struyven from Goldman Sachs Group, Inc. said, "Fed rate cuts will attract Western capital back into gold ETFs, which has been a fundamental part of gold's substantial rise in the past two years." They reiterated the bank's forecast for gold prices to rise to $2,700 per ounce at the beginning of next year. Individual Stock News Continued expansion in the AI landscape! Rumor has it that NVIDIA Corporation (NVDA.US) is considering acquiring.OctoAI, a software startup company, is reported to have received a bid of approximately $165 million from NVIDIA Corporation for the acquisition. The company, based in Seattle, sells software to help customers run their artificial intelligence models more efficiently. OctoAI's shareholders include Tiger Global Management, Madrona Venture Group, and Amplify Partners. NVIDIA Corporation has been active in the acquisition field, with four transactions so far this year. In April, they acquired Israeli data center management software company Run:Ai for $700 million; in May, they acquired Israeli end-to-end deep learning platform developer Deci for $300 million; in June, they acquired data center fault automation company Shoreline for around $100 million; and in July, they acquired AI development tool startup Brev.dev, with the financial terms of the deal undisclosed.Apple Inc. (AAPL.US) iPhone 16 not selling well? Chinese online retailers offer discounts in advance. It is reported that PDD Holdings Inc. Sponsored ADR Class A (PDD.US) has started selling the iPhone 16 Plus with 512GB of storage space for RMB 8999 (approximately $1268), which is a 10% discount from the official price of RMB 9999. At the same time, the 128GB iPhone 16 is being sold at an even larger 11% discount. PDD Holdings Inc. Sponsored ADR Class A and Alibaba Group Holding Limited Sponsored ADR (BABA.US) under the Taobao platform are offering a 4% discount on the 256GB iPhone 16 Pro Max, reducing the price by 400 yuan to 9599 yuan. Alibaba Group Holding Limited Sponsored ADR's Tmall shopping platform is offering buyers the option of a 24-month installment plan with no interest. The discounts indicate weak demand for Apple Inc.'s new phones in China, which is the world's largest smartphone market and one of the most competitive markets. After a fierce strike, Boeing Company (BA.US) and the union will resume contract negotiations on Wednesday. Following a failure to reach an agreement on key issues such as wages and pensions on Tuesday, the International Association of Machinists and Aerospace Workers stated that Boeing Company and the union will resume contract negotiations on Wednesday with the presence of a federal mediator. Last Friday, union members started a strike in the early hours of the 13th local time, with about 33,000 people participating. In the first comprehensive contract negotiation with Boeing Company in 16 years, the union has been pushing for a 40% raise over the next four years, significantly higher than Boeing Company's previously rejected 25% raise proposal. The strike has already led to Boeing Company halting production of its best-selling 737 MAX jets, as well as the 777 and 767 wide-body jets, and delaying deliveries to airlines. The decision on the review of Nippon Steel's acquisition of United States Steel Corporation (X.US) will be postponed until after the US election. According to an insider, the Committee on Foreign Investment in the United States (CFIUS) is allowing the two companies to resubmit their application for approval of Nippon Steel's $14.9 billion acquisition of United States Steel Corporation. This means that the decision on this politically sensitive transaction will be postponed until after the US presidential election on November 5th. This brings a glimmer of hope to the two companies. The insider stated on Tuesday that CFIUS needs more time to understand the impact of the deal on national security and to engage with all parties. CFIUS has set a new 90-day deadline for the two companies to resubmit their application for review of the proposed merger and make a decision. Another insider expects the review to take almost the full 90 days. This deal has become a political hot potato, with both parties vying for union votes. As of the time of writing, United States Steel Corporation's pre-market trading on Wednesday rose over 2%. Intuitive Machines (LUNR.US) surged over 52% in pre-market trading! Secures a $4.82 billion NASA contract. Intuitive Machines announced that the company has secured a nearly $4.82 billion contract from the National Aeronautics and Space Administration (NASA) for communication and navigation services for missions extending from the Earth's surface to near space beyond the moon. The contract has a base period of five years, with an option to extend for five more years. Cantor Fitzgerald senior analyst Andres Sheppard stated, "We believe today's victory is a significant validation of Intuitive Machines' prospects and its ability to continue winning more contracts." Upcoming important economic data and events: 8:30 PM Beijing time - Preliminary US August Building Permits Rate 8:30 PM Beijing time - US August New Home Starts Annual Rate 10:30 PM Beijing time - US EIA Crude Oil Inventory Change as of the week ending September 13 2:00 AM the following day Beijing time - The Federal Reserve announces interest rate decisions and economic outlook summaries 2:30 AM the following day Beijing time - Federal Reserve Chairman Powell holds a press conference on monetary policy.