The US stock market has experienced a surge to record highs following the election of Donald Trump and a subsequent interest rate cut by the Federal Reserve.
This market optimism is reminiscent of the reaction to Trump's first election in 2016, which led to tax cuts and stock market growth. The potential for a Republican majority in the House of Representatives is being closely monitored, as it could facilitate the implementation of Trump's preferred trade and tax policies.
China is also adjusting its economic strategy in response to these developments, with a focus on stimulating housing and consumption to combat deflation and maintain stability.
The upcoming release of the October consumer price index (CPI) report and the Federal Reserve's monetary policy decisions will be important indicators for the US economy.
Technical analysis of major indices suggests that the Nasdaq 100 and S&P 500 are showing strength and are expected to continue their upward trajectory, although a break below key support levels could signal a potential decline. Overall, the interplay between economic indicators, monetary policy, and geopolitical factors will shape the outlook for US stocks in the coming weeks.