Breakfast | Quantum Computing concept stocks plummet! Meme stock QUBT crashes 41%

Market Overview

After rebounding more than 400 points during the day, the Dow Jones Industrial Average gave back most of its gains, barely ending its longest streak of declines in fifty years. The S&P 500 and Nasdaq opened high but fell back, failing to sustain their rebounds; Nvidia closed up over 1%, halting a four-day decline, while Tesla initially rose nearly 4% before turning down. Micron Technology, with poor earnings guidance, plummeted 16%.

After the Federal Reserve cut interest rates as expected, it adopted a hawkish stance. The yield spread between two-year and ten-year U.S. Treasury bonds reached its widest in two and a half years, and the ten-year Treasury yield hit a nearly seven-month high. The U.S. dollar index reached a two-year high.

The Bank of Japan's governor dampened recent rate hike expectations, causing the yen to drop nearly 2% during the day, falling below the 157 mark to a five-month low. The Bank of England held steady but more voting members supported a rate cut, leading the pound to fall to a near four-week low.

The renminbi rebounded, with offshore renminbi once rising over 200 points to reclaim 7.31, moving away from a one-year low. Bitcoin fell over $6,000 for two consecutive days, dropping below the $96,000 mark.

Crude oil turned down over 1% during the day, closing at a new low for over a week. Spot gold turned up after hitting a one-month low, rising over 1% at one point, while silver futures fell over 5% during the day.

In the Asian session, the Northbound Stock Connect 50 rose over 3%, Hong Kong stocks saw Tencent rally in the afternoon, while Baidu fell. WeChat's gray test of the "gift" function was noted, and Weimob Group surged over 40%.

Goldman Sachs: Although the Fed is hawkish, Powell is dovish, still expecting three rate cuts next year

Goldman Sachs believes that Powell leaned dovish during the press conference, mentioning four times that the Fed's policy remains "significantly restrictive," disagreeing with the view that "the federal funds rate is close to neutral." Goldman Sachs expects rate cuts in March, June, and September next year, but it should be noted that the March cut requires better inflation data or worse employment data to support it.

U.S. Q3 Real GDP Significantly Revised Up! Annualized quarterly growth rate final value at 3.1%, accelerating growth

Thanks to strong growth in consumer spending and exports, the U.S. economy grew faster than expected in the third quarter, with overall economic growth accelerating compared to the second quarter. The annualized quarterly real GDP final value for Q3 was 3.1%, expected at 2.8%, and the previous value was 2.8%. The Fed's "favorite inflation indicator"—the core Personal Consumption Expenditures (PCE) price index—had an annualized quarterly final value of 2.2%, expected at 2.1%, and the previous value was 2.1%.

Bitcoin briefly fell 5% to approach $96,000, analysts: may retreat to $90,000

Riot Platforms closed down 6.36%, Bitdeer Technologies closed down 6.49%, and Canaan Creative closed down 10.81%. Cryptocurrency exchange giant Coinbase closed down 10.2%, BTC Digital closed down 10.82%, and "Bitcoin whale" MSTR closed down 6.63%.

Sean McNulty, trading director at liquidity provider Arbelos Markets, stated that after the Fed meeting, market hedging demand against Bitcoin's decline has increased. Zann Kwan, chief investment officer at Revo Digital Family Office, predicts that Bitcoin may retreat to just above $90,000 in the short term

Quantum Computing concept stocks plummet!

Quantum Corporation (QMCO) closed down 39.97%, Quantum Computing (QUBT) closed down 41.04%, D-Wave Quantum (QBTS) closed down 28.91%.

After the Federal Reserve's decision day, $6.5 trillion in options expiration becomes Wall Street's next test

As investors digest the Federal Reserve's intention to slow down interest rate cuts, the traditionally tumultuous Friday options expiration becomes the last risk for the market to experience a wave of calm before the end of the year.

According to estimates from derivatives analysis firm Asym 500, approximately $6.5 trillion in options associated with individual stocks, indices, and exchange-traded funds (ETFs) will expire on this quarterly "triple witching day," marking the largest scale this year and ranking among the largest in history, although slightly lower than a year ago.

Given that the Federal Reserve cut rates for the third consecutive time on Wednesday while also signaling a readiness to slow down the pace of rate cuts, the timing of this triple witching day is unusual. Wall Street participants may sometimes exaggerate risks, but trading volume often surges on triple witching day, and stock price fluctuations are common as options expire or traders establish new positions.

Trump lashes out, then a "48-hour escape": House Republicans urgently seek alternatives to avoid government shutdown

House Republican members met on Thursday in Speaker Johnson's office, with the chair of the appropriations committee stating that Republicans are exploring various options, saying, "There are many choices," and "We are moving in a good direction." Some departing members indicated that progress is being made. Trump stated that if the debt ceiling is not extended or completely eliminated, he would prefer a government shutdown, claiming that a shutdown would only hurt current President Biden. Media reports suggest that the Republican agreement may include raising the debt ceiling.

Two major U.S. creditors, China and Japan, have sold U.S. Treasuries for two consecutive months, with China's holdings in October hitting a new low since 2009

U.S. Treasury Department data shows that in October, Japan's holdings of U.S. Treasuries decreased by $20.6 billion from September, falling to $1.1027 trillion, the lowest in a year; China's holdings dropped by $11.9 billion to $760.1 billion, marking a four-month decline.

Surge in immigration drives fastest U.S. population growth since 2001

Data from the U.S. Census Bureau shows that a surge in immigration has led to the largest annual population increase in the U.S. since 2001. The latest estimates released by the Census Bureau on Thursday indicate that the U.S. population is expected to grow by nearly 1% in 2024, reaching 341 million. Of the 3.3 million new residents, about 2.8 million are from outside the U.S. The number of births exceeded deaths by nearly 519,000, up from a low of 146,000 during the pandemic in 2021