Preview of US Stock Market | Three major stock index futures rose together, and this week US PCE data and speeches by Federal Reserve officials took turns on stage.

1. Before the US stock market opens on Monday, the futures of the three major US stock indexes are all rising. As of press time, the Dow Jones futures were up 0.02%, the S&P 500 index futures were up 0.11%, and the Nasdaq futures were up 0.18%. 2. As of press time, the German DAX index rose 0.50%, the UK FTSE 100 index fell 0.16%, the French CAC 40 index fell 0.23%, and the Euro Stoxx 50 index rose 0.22%. 3. As of press time, WTI crude oil rose 0.46% to $71.33 per barrel. Brent crude oil rose 0.42% to $74.00 per barrel. Market News Heavyweight week ahead! US PCE data and speeches by Federal Reserve officials coming one after another. This week, global financial markets will see many important data releases and events. A slowdown in the price indicators favored by the Federal Reserve and strong consumer demand will support the Fed's decision to significantly cut interest rates and Federal Reserve Chairman Powell's view that the economy remains strong. Economists expect the US August PCE price index, to be released on Friday, to rise by only 0.1% month-on-month for the second consecutive month. This inflation indicator is expected to rise 2.3% from the same period last year, the smallest annual increase since early 2021, slightly above the Federal Reserve's 2% target. Investors will be paying attention to speeches by several Federal Reserve officials in the coming week. On Thursday, Federal Reserve Chairman Powell pre-recorded a video for an event opening. In addition, Federal Reserve Board Governors Michelle Bowman, Adriana Kugler, Lisa Cook, as well as regional Federal Reserve Presidents Raphael Bostic and Austan Goolsbee will be attending various events. Federal Reserve's Kashkari: The balance of risks has shifted towards further weakness in the labor market and rising unemployment rates. He stated that the Federal Reserve's 50 basis point rate cut was the "right decision," reflecting progress on inflation and a slowing labor market. He expects the Federal Reserve's policy rate to be 4.4% at the end of 2024 and 3.4% at the end of 2025, consistent with the median forecast of Federal Reserve policymakers. Economic growth and rate cuts are happening simultaneously, posing a challenge for US stock traders in terms of investment strategy. As the Federal Reserve begins an easing cycle, Wall Street traders face a unique challenge in betting on the market as historical trends no longer provide guidance. During rate cuts, a classic trading strategy is to buy stocks in defensive industries that are not affected by economic conditions. Another popular strategy is to buy stocks in industries that pay high dividends, such as utilities. This is because the Federal Reserve typically lowers rates to counter economic weakness or boost a slowing economy. During this period, stocks in growth sectors like technology tend to be affected. However, this is not happening now. Instead, the economy is growing, stock indices are reaching historic highs, and corporate earnings are expected to continue growing, while the Federal Reserve has started a rate cut cycle with a 50 basis point cut. Significant Federal Reserve rate cuts exacerbate valuation anxiety, prompting investors to flock to corporate bonds. Investors are pouring a significant amount of funds into corporate bonds, tightening credit spreads, as the Federal Reserve's rate cut reignites hopes of avoiding a recession. At the same time, some fund managers believe that the market is overly complacent about potential concerns. Simon Matthews, senior portfolio manager at Neuberger Berman, stated, "The US election is approaching and expectations for German economic growth are the weakest since before the COVID-19 pandemic, consumers are feeling financially constrained, and Chinese economic growth is slowing. When you take all these factors into account, it doesn't tell you that credit spreads should be close to their limit." He also added that a decrease in borrowing costs will help alleviate some negative factors. Investors have been disregarding potential negative factors, delving deeper into the riskiest credit sectors to seek higher returns. Bull market emboldens! Goldman Sachs Group, Inc. envisions the S&P 500 reaching 6000 points by the end of the year: but a rebound after short-term volatility. Scott Rubner, Managing Director of the Global Markets Division at Goldman Sachs Group, Inc., stated that the US stock market is expected to rebound before the end of the year, but only after experiencing unfavorable short-term situations such as technical positioning, capital flows, and pre-election anxiety. In a client report last Friday, Scott Rubner said, "From a tactical perspective, I am bearish on the quarter-end, but the target is for the S&P 500 index to rebound before the end of the year." Data from Goldman Sachs Group, Inc. shows that in the past two trading days up to September 20, long positions have been reduced by approximately $6.1 billion, the third largest cut since 2019. This means that Wall Street traders are not buying on dips to maintain neutral positions. Scott Rubner also forecasts that selling pressure will increase in the next month or so. Federal Reserve rate cuts may not be a positive development! Bank of America warns: Bubble risks are resurfacing, recommends buying bonds and gold. Strategist Michael Hartnett of Bank of America Corp warns that the excitement in the stock market after Federal Reserve rate cuts has exacerbated bubble risks, making bonds and gold attractive tools to hedge against economic recession or rising inflation. This strategist, who was bearish on the US stock market for most of last year, previously indicated a preference for bonds by 2024. He stated that the stock market currently expects further easing of Federal Reserve policy and around an 18% increase in earnings for S&P 500 index constituent companies by the end of 2025. However, he warns that "bubble risks" are resurfacing, and advises buying bonds and gold on dips. The strategist also stated that in the event of an economic soft landing, non-US equities and commodities are good targets, with the latter serving as hedges against inflation. He also mentioned that international stock prices are lower and starting to outperform US stocks. Individual Stock News Uxin Ltd. Sponsored ADUxin.US Financial Report: Retail sales volume in the second quarter of 2024 increased by 142% year-on-year, and is expected to increase by another 40% in the third quarter. The second-hand car retail dealer Uxin Ltd. Sponsored ADR group showed strong growth momentum in the second quarter of 2024, with total revenue increasing by 38.8% year-on-year, and retail transaction volume increasing by 142.4% year-on-year. Performance guidance indicates that retail transaction volume in the next quarter is expected to continue to increase by over 40%. The financial report shows that Uxin Ltd. Sponsored ADR group achieved total revenue of 401 million yuan in this quarter, an increase of 25.7% quarter-on-quarter and 38.8% year-on-year; total trading volume of used cars reached 5605 vehicles, an increase of 38.1% quarter-on-quarter, a 72.2% increase from the same period last year's 3254 vehicles. Among them, retail transaction volume reached 4090 vehicles, an increase of 30.9% quarter-on-quarter, a significant increase of 142.4% from the same period last year's 1687 vehicles, reaching a historical high. Looking ahead to the third quarter of 2024, the company expects retail transaction volume to be between 5800 and 6000 vehicles, with an increase of over 40% quarter-on-quarter.General Motors Company (GM.US) continues to swing the layoff sword, planning to lay off nearly 1,700 people at a factory in Kansas. General Motors Company announced that it will lay off nearly 1,700 employees at its Fairfax assembly and stamping plant in Kansas. The car manufacturer made this announcement in worker adjustment and retraining notices submitted to the Kansas Department of Commerce. Reports indicate that the layoffs of 680 people will begin on November 18. General Motors Company has carried out several layoffs this year. The factory, located in Kansas City, Kansas, opened in 1987 and produces Chevrolet Malibu sedans and Cadillac XT4 SUVs. General Motors Company states that the company has around 2,300 employees. Earlier this year, General Motors Company announced that it will cease production of the Malibu in November. A spokesperson for General Motors Company said that the layoffs are "temporary" and that the company will invest $390 million to retool the factory to produce Chevrolet Bolt electric vehicles. Apollo Global Management Inc (APO.US) is reportedly planning to invest billions of dollars in Intel Corporation (INTC.US). According to sources, Apollo Global Management Inc has proposed to invest billions of dollars in Intel Corporation. This move would be a vote of confidence in the chipmaker's turnaround strategy. One source indicated that Apollo Global Management Inc recently hinted that it is willing to make a equity investment in Intel Corporation of up to $5 billion. Sources state that Intel Corporation executives have been considering the proposal from this alternative asset management company. Sources also added that nothing is final yet, the potential investment size could change, and negotiations could break down resulting in no final agreement. It is worth noting that the two companies already have a working relationship. In June, Intel Corporation agreed to sell its stake in a joint venture factory in Ireland to Apollo Global Management Inc for $11 billion, bringing in more external funding for its large-scale expansion of factory networks. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) and Samsung Electronics (SSNLF.US) are considering building a chip factory in the United Arab Emirates. According to reports citing sources, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR and Samsung Electronics are in discussions to build a large chip factory in the UAE in the coming years to meet the growing demand for artificial intelligence computing. The report states that executives from Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR recently visited the UAE to discuss building a comprehensive facility in the UAE that would rival Taiwan Semiconductor Manufacturing Co., Ltd.'s advanced facilities in Taiwan. Another source familiar with Samsung Electronics' strategy stated that Samsung Electronics has also sent individuals to the UAE to discuss significant new business in the country. The report added that discussions are still in early stages, and considering the technical and other obstacles these projects face, they may not succeed. The projects under consideration may require an investment of over $100 billion. Upcoming Important Economic Data and Events 9:45 p.m. Beijing time: Initial value of the September SPGI Manufacturing PMI in the United States. 8:00 p.m. Beijing time: FOMC voter for 2024, Atlanta Fed President Bostic, will give a speech on the economic outlook. 10:15 p.m. Beijing time: FOMC voter for 2025, Chicago Fed President Evans, will participate in a fireside chat. 1:00 a.m. Beijing time the next day: FOMC voter for 2026, Minneapolis Fed President Kashkari, will deliver a speech.