Long positions continue but insufficient breadth

U.S. stocks continued to hit intraday highs supported by earnings reports and the launch of the Federal Reserve Board meeting, but gains were concentrated in large technologies. The Dow Jones Industrial Average was provisionally reported at 47,885.59, up 0.72%; the S & P 500 was provisionally reported at 6,893.32, up 0.26%; the Nasdaq was provisionally reported at 23,799.71, up 0.69%; Philadelphia Semiconductor was provisionally reported at 7,200.55, up 0.45%. The number of declines on the market is still more than those on increases, indicating that funds are biased towards minority stocks and the market breadth is relatively insufficient.

The intersection of financial reports and interest rate decisions affects emotions

The Fed's two-day meeting entered a critical moment. The market generally bet on a one-yard interest rate cut. Investors remained on the sidelines before making a statement after the meeting and talking to the chairman. On the boom side, the consumer confidence index has weakened to a multi-month low, and concerns about income and employment prospects still exist. However, driven by large-scale weights and popular themes, overall risk appetite can still support the index's high.

Large-scale technology support effect is obvious

The top seven U.S. stocks generally rose during the session, with Nvidia(NVDA)194.92, up 1.79%;Microsoft(MSFT)543.09, up 2.18%;Amazon (Amazon, AMZN)230.78, up 1.68%;Tesla(Tesla, TSLA)464.47, up 2.66%;Apple(Apple, AAPL)269.33, up 0.19%;Meta Platforms(Facebook, META)756.18, up 0.71%;Alphabet (GOOGL)268.72, down 0.45%. The trend of weight stocks provides upward support for the index and also highlights the structure where funds are concentrated in a few leaders.

Payment and cloud theme ignition

PayPal(PYPL) surged sharply. The company partnered with OpenAI to embed its digital wallet into ChatGPT to provide instant checkout services, stimulating the market's imagination of payment service penetration and commercialization. Microsoft's buying is driven by a clearer cooperation structure with OpenAI, showing that AI ecosystem issues continue to be the main line of technology stocks.

Mergers and acquisitions drive communication chips

Skyworks Solutions(SWKS) plans to use approximately US$22 billion to acquire Qorvo(QRVO) to ignite the communications chip community. SWKS's intraday surge was 11.91%, Qorvo rose 10.70%, and the transaction volume was significantly enlarged. Sentiment in Apple's supply chain and radio frequency related stocks has warmed up, coupled with the simultaneously rising Philadelphia Semiconductor Index, showing that funds continue to favor key components behind AI and connected devices.

Differences in performance between transportation and traditional industries

United Parcel Service(UPS) became the focus of the market after revenue and profits were better than expected and the transformation progress was confirmed. Among Dow Jones constituents, Sherwin-Williams(SHW) performed well due to better-than-expected third-quarter earnings; in contrast, F5(F5, FFIV) weakened due to information security incidents, which disrupted its short-term sales cycle and became conservative, reflecting that the pace of corporate IT spending is still unstable.

Tourism, leisure and real estate investment trusts are under pressure

Royal Caribbean Cruises(RCL) fell as revenue fell short of market expectations, and sentiment among tourism and cruise groups weakened. In terms of real estate investment trusts, Alexandria Real Estate Equities (ARE) fell 17.57%, and industrial technology equipment company Zebra Technologies(ZBRA) fell 15.88%, reflecting the impact of earnings and outlook pressure on the market. In addition, CarMax (KMX) fell due to the establishment adjustment that was removed from the S & P 500 and transferred to the S & P Small Cap 600.

Trends in commodities and foreign exchange bonds show stable risk sentiment

International gold and oil prices futures fell intraday, indicating a wait-and-see view of the path of demand and interest rates. The yield rate on the 10-year U.S. government bond has not changed much, the U.S. dollar has weakened against the Japanese yen and the euro, and the trend of cryptocurrencies has diverged. The overall risk aversion has not yet heated up sharply, and market risk appetite has remained stable and cautious.

Market breadth and volume show the characteristics of news boards

Although the index continued to hit high during the session, more than half of the stocks fell, and the structure of high capital concentration remained unchanged. Gains such as Skyworks, Qorvo, UPS and Regeneron Pharmaceuticals(REGN) were accompanied by increased volume, showing that subject matter and financial reports dominated buying; in contrast, Alexandria Real Estate Equities and Zebra Technology fell in volume, and selling pressure was also concentrated on individual stocks with clear negative news.

Prosperity signals and policy variables will dominate the next pace

Under the tug of high index and narrow breadth, the market still uses the Fed's interest rate decision and the chairman's conversation as the core variables in the short term, and subsequent intensive financial reports will also test risk tolerance. Investors are concerned about whether technology equity will continue to support the market, whether inflation and demand clues will improve, and whether semiconductor and payment themes can spread to a wider range of stocks, forming a healthier upward structure.