The Dow Jones Industrial Average jumps to a new high

The US stock market surged, with two major stock indices reaching new highs. Wall Street is weighing the risks of Google's spin off while analyzing the latest minutes of the Federal Reserve meeting and preparing for the latest consumer inflation report.

Firstly, the Nasdaq Composite Index rose by 0.6%. The S&P 500 index rose about 0.7%, while the Dow Jones Industrial Average rose more than 1%, or nearly 450 points. The Dow Jones Industrial Average and the S&P 500 Index both hit historic highs on Wednesday, and the S&P Index is gradually approaching the next integer milestone: 5800. In the intense debate surrounding the economic situation, the Federal Reserve finally relaxed its policies and the stock market experienced significant fluctuations. The Federal Reserve's decision to significantly cut interest rates by 50 basis points has raised concerns in the market that the Fed may face unforeseen risks. This has raised concerns among investors about the possibility of a "no landing" situation for the Federal Reserve, where the economy continues to grow and inflation risks reappear.

Secondly, the minutes of the September meeting of the Federal Reserve showed that the vast majority of officials supported lowering interest rates by half a percentage point. But some attendees support lowering interest rates by 25 basis points. After the release of the meeting minutes, the market expects a 24% chance that the Federal Reserve will not cut interest rates at the November meeting. According to the Chicago Mercantile Exchange's FedWatch tool, this probability has significantly increased from a day ago to 0% a week ago.

On the other hand, due to the rise of technology stocks and investors getting rid of geopolitical concerns, the stock market rose for the second consecutive trading day, with both the S&P 500 index and the Dow Jones Industrial Average setting closing records. The S&P 500 index rose 0.71% to close at 5792.04, setting a new historical high, while the Nasdaq Composite Index and Dow Jones Industrial Average rose 0.6% to close at 18291.62. The 30 constituent stocks of the Dow Jones Industrial Average surged 431.63 points, or 1.03%, to close at 42512.00 points, setting a new historical high for the closing. Technology stocks are the clear leaders of this round of gains, with Amazon and Apple rising by over 1%. Super Micro Computer has increased by 4%. The rise helped correct the unfavorable start of October and pushed the major stock indexes into an upward range this month.

In addition, driven by the rise in technology stocks and the decline in oil prices, the Wall Street stock market has performed strongly. These trends seem to reflect growing optimism that the Federal Reserve can achieve a soft landing, especially after last week's employment report showed sustained strength in the labor market. It can be certain that even with a potential upward trend, the market may still face further volatility in the most turbulent months of the year in history, especially before the US presidential election. In terms of the economy, investors are waiting for the release of the September Consumer and Producer Price Index. The earnings season will kick off on Friday with major banks JPMorgan Chase and Wells Fargo.

Although the Federal Reserve has started to cut interest rates, they remain high and bond market yields remain at attractive levels. He stated that assuming inflation is under control, bonds should be able to provide investors with income and diversified investments, which will help protect investment portfolios during turbulent times. Meanwhile, investors are paying attention to the situation in the Middle East as Israel may retaliate against Iran's missile attack earlier this week.

Overall, investors have also noted the news that the US Department of Justice is considering requiring judges to force Google to sell key businesses to correct its monopoly position. The stock price of Google's parent company fell in early trading, following a general rebound in technology stocks, which led to a significant increase in the stock price.