Preview of US Stock Market | Three major stock index futures fell together, and the Fed's interest rate cut cycle may usher in the "melt-up" curtain.

eing Company 1. Before the US stock market opened on September 24th (Tuesday), the futures of the three major US stock indexes all fell. As of the time of writing, the Dow Jones futures fell by 0.03%, the S&P 500 index futures fell by 0.05%, and the Nasdaq futures fell by 0.06%. 2. As of the time of writing, the Germany DAX index rose by 0.69%, the UK FTSE 100 index rose by 0.28%, the France CAC 40 index rose by 1.38%, and the Europe Stoxx 50 index rose by 0.99%. 3. As of the time of writing, WTI crude oil rose by 2.36% to $72.03 per barrel. Brent crude oil rose by 2.148% to $74.78 per barrel. Market News Is the US stock market party far from over? The rate cut cycle of the Federal Reserve may kick off a "melt-up". Ed Yardeni, the founder of the well-known investment institution Yardeni Research who has long been bullish on the US stock market, stated that the unexpected large rate cut of 50 basis points by the Federal Reserve last week may lead to a "melt-up" in the US stock market due to rapid easing - where the stock market continues to rise to historic highs, similar to the dot-com bubble in the late 1990s. Yardeni also mentioned that if the Federal Reserve and other central banks do not take a cautious stance, it could lead to a rapid resurgence of inflation rates. Yardeni stated that the latest policy decision by the Federal Reserve has increased the possibility of a "melt-up" in the US stock market from 20% to 30%, and the best explanation for the term "melt-up" is the dot-com bubble period. Federal Reserve officials intensively speak out, opening the door to another significant rate cut. Several Federal Reserve officials opened the door to another significant rate cut on Monday, indicating that the current level of interest rates is still putting significant pressure on the US economy. However, these Federal Reserve officials did not indicate a preference for repeating last week's 50 basis points rate cut and mentioned that the upcoming data will guide their decisions. Chicago Fed President Evans, Atlanta Fed President Bostic, and Minneapolis Fed President Kashkari all expressed support for the Federal Reserve's decision to cut rates by 50 basis points last week. On the question of how quickly the Federal Reserve should cut rates, Bostic appeared to be more cautious than Evans. But he also admitted that there may still be room for rate cuts before reaching a neutral rate. After the significant rate cut by the Federal Reserve, US companies launch a wave of bond issuance. Following the Federal Reserve's significant lowering of benchmark interest rates last week to lower borrowing costs, US companies flocked to the bond market on Monday. Ten high-rated issuers, including T-Mobile US, raised a total of $12.2 billion, rebounding from lower-than-expected issuance last week. Syndicate trading desks stated that issuance this week could reach $20 to $25 billion. Ten companies borrowed in the junk bond market, making it the busiest day this year in terms of the number of issuers. In the US, 18 leveraged loan deals were launched. The Fed's decision last week to cut rates by 50 basis points further tightened credit spreads. This provided an opportunity for borrowers to refinance and raise new capital before profit disruptions and potential volatility from US elections or upcoming economic data. Former market expert at Merrill Lynch, Charles Clough: The current stock market is different from the dot-com bubble period, still has room to rise. Despite the strong rally in US stocks this year, there are still many who choose to be bearish, including the well-known former Chief Market Strategist at Morgan Stanley, Marko Kolanovic, who has already resigned. Charles Clough, who resigned as Chief Investment Strategist at Merrill Lynch nearly twenty-five years ago, is now managing Clough Capital hedge fund. Clough believes that the cash flow generated by American companies is enough to prove that the continuously rising stock prices are justified, with a well-functioning economy, expectations of declining inflation and interest rates. In his view, the stock market still has significant room for upside. Goldman Sachs Group, Inc.: As interest rates fall, hedge funds rush to buy US technology stocks. According to a Goldman Sachs Group, Inc. institutional brokerage client report seen on Monday, spurred by expectations of a 50 basis point rate cut by the Federal Reserve, hedge funds bought US technology and media stocks at the fastest pace in four months last week. The expected rate cut is expected to boost industrial spending, make it easier for businesses to borrow at lower costs, and for consumers to purchase technology products, all of which could benefit the industry's stock prices. The report from the institutional brokerage firm stated that hedge funds' long positions betting on the rise of information technology stocks were almost three times the long positions betting on their decline. The report from Goldman Sachs Group, Inc. indicated that buying interest in semiconductor and related equipment companies exceeded the selling interest in technology hardware companies like computers, displays, and hard disk drive manufacturers. Hedge funds also increased their long positions in interactive media and entertainment companies while expecting a decline in asset values. Individual Stock News Boeing Company proposed a 30% salary increase to settle a strike, but was firmly rejected by the union. Boeing Company bypassed angry union leaders and directly proposed a 30% salary increase to striking workers in an attempt to settle a strike that has severely impacted its aircraft manufacturing plant in The Pacific Northwest region. This strike has led to the closure of Boeing Company's airplane manufacturing plant in Seattle. The aircraft manufacturer proposed a 30% salary increase for workers at the Seattle plant over a four-year period, higher than the 25% salary increase rejected earlier this month by the 33,000 members of the International Association of Machinists and Aerospace Workers (IAM). Boeing Company's proposal was firmly rejected by the union, and the strike continues.Boeing Company stated that these terms are the final offer, valid until September 27th. IAM 751 union responded harshly on their website a few hours later, stating that the proposal was "thrown at us without any discussion." The union stated that Boeing Company has refused to meet since negotiations broke down last week, and added that they will not arrange a vote on the latest proposal. Nippon Steel urges USW leadership to engage in negotiations to facilitate the acquisition of United States Steel Corporation (X.US). Nippon Steel Vice Chairman Takahiro Mori stated on Tuesday that the company is still committed to negotiating with the United Steelworkers Union (USW) regarding the acquisition of United States Steel Corporation. Mori, as the primary negotiator for the acquisition deal, expressed in a letter to United States Steel Corporation employees that USW President David McCall "has not seriously considered any of our proposals." David McCall responded, "Nippon Steel has never made a commitment that cannot be easily revoked. Their so-called guarantees are conditional, allowing Japanese executives in Tokyo to change business plans at any time, putting workers and their communities at a disadvantage." Prior to the November presidential election in the United States, this agreement faced opposition from prominent figures in the Democratic and Republican parties, including Democratic candidate Harris and her Republican competitor Donald Trump. Coinbase (COIN.US) and the US SEC clash over new cryptocurrency regulations. The largest cryptocurrency exchange in the United States, Coinbase (COIN.US), faced off against the US Securities and Exchange Commission (SEC) in the Philadelphia Federal Appeals Court on Monday, urging the SEC to establish new rules for digital assets. Coinbase filed a lawsuit against the SEC last year in an attempt to compel the regulatory agency to act on a rulemaking petition submitted by Coinbase for 2022. In the petition, Coinbase urged the SEC to clarify the status of digital assets as securities and create a new market structure framework compatible with cryptocurrencies. The SEC rejected Coinbase's request to establish new rules in December 2023, stating that existing financial market regulations also apply to cryptocurrencies. SEC Chairman Gary Gensler has repeatedly stated that most cryptocurrencies are securities and fall under SEC jurisdiction. Reports suggest that the US Department of Justice will sue Visa (V.US) for monopolizing the debit card market. According to sources, the US Department of Justice plans to file a lawsuit against Visa (V.US), the world's largest payment network operator, alleging that the company illegally monopolized the country's debit card market. Insiders revealed that the antitrust division is expected to file a lawsuit against Visa in federal court on the 24th, accusing the company of various anticompetitive practices. In 2023, the US Department of Justice's antitrust division requested information from Visa regarding its debit card business in the United States and competition with other payment networks. The investigation began in 2021, and at that time, Visa stated that it believed its debit practices complied with applicable laws. Important economic data and events forecast 22:00 Beijing Time: US September Conference Board Consumer Confidence Index, US September Richmond Fed Manufacturing Index. Next day, 04:30 Beijing Time: US API Crude Oil Inventory Change (in thousands of barrels) for the week ending September 20. 21:00 Beijing Time: Federal Reserve Board Member Bowman speaks on economic outlook and monetary policy. 22:00 Beijing Time: US President Biden delivers a speech at the United Nations General Assembly.