ADDX Go Morning Market Wrap - Oct 3rd

Market Key Focus

Equities: Hang Seng rally continues and Securities & real estate stocks continue to surge

Crypto: Investors sold Bitcoin and bought gold as Iran launched missiles at Israel

US Treasury Bonds:  Treasury yield curve steepens with long end higher

FX: Japanese yen plunged 2% on PM Ishiba’s dovish shift

Gold and oil: Oil halts rally after EIA data

Smart Money Tracking

ARKK Investment Holdings Update:

Reduced its holdings of Shopify Inc by 7,032 shares, a decrease of 0.68% from the previous period, and currently accounts for 10.68% of the total holdings.

Stocks to Focus

1. After the market closed, Huang Renxun said that the demand for Blackwell chips was crazy, and Nvidia rose more than 1% again
2. Tesla deliveries fall short of expectations

Market events

Initial Jobless Claims

Previous: 218K

Forecast: 221K

ISM Non-Manufacturing PMI(Sep)

Previous: 51.5

Forecast: 51.6

FOMC Member Bostic Speaks

Macros

1. The latest US ADP jobs report exceeded expectations, with an increase of 143,000 jobs, surpassing the 120,000 forecast and marking an acceleration from the revised figure of 103,000 in the previous report. However, wage growth is showing signs of slowing, as the median annual pay increase for job stayers dropped to 4.7% from 4.8% year-over-year, while pay changes for job changers decreased to 6.6% from 7.3%. This report indicates ongoing hiring but a slowdown in pay growth, which could dampen expectations for Federal Reserve easing. Attention now shifts to the non-farm payrolls data set to be released on Friday.
2. In Japan, Prime Minister Shigeru Ishiba stated that the economy is not yet prepared for additional interest rate hikes. This remark followed his first meeting with Bank of Japan Governor Kazuo Ueda as Ishiba begins his new administration. This statement reinforces the notion of a cautious approach to normalization by the Bank of Japan.

Earnings

Before Open: Constellation Brands A, VinFast, AngioDynamics

US Equities

US stocks saw a slight increase on Wednesday as investors exercised caution amid rising tensions in the Middle East. The S&P 500 finished nearly unchanged, while the Dow Jones added 39 points and the Nasdaq rose by 0.1%. In Asia, the Hang Seng Index continued its upward trend, climbing 6.2% during the session, driven by strong performances in consumer and property sectors. Notably, Meituan surged 14.6% and Longfor Group jumped 24.7% yesterday.

In economic news, ADP's jobs report indicated stronger-than-expected growth, with 143,000 private-sector jobs created in September. This data has led investors to anticipate Friday's jobs report for further insights into the economy and potential impacts on the Federal Reserve's interest rate decisions.

On the corporate front, Nike's shares fell 6.8% after the company retracted its full-year outlook, while Tesla's stock dropped 3.5% due to weaker-than-expected delivery numbers, recording 462,890 units compared to the anticipated 463,310. Defense and energy stocks remain in focus amid the escalating geopolitical situation, highlighting opportunities within the defense sector.