U.S. retail sales and factory output for August showed unexpected increases, leading the market to anticipate the Federal Reserve's interest rate decision on Wednesday. On September 17, both the S&P 500 and the Dow Jones Industrial Average achieved new intraday highs, while notable Chinese concept stocks exhibited strong performance. Concurrently, gold prices retreated from their recent peak.

U.S. Retail Sales Unexpectedly Rise; Economic Fundamentals Remain Robust

Retail sales in the United States for August rose unexpectedly, suggesting that the U.S. economy remained solid throughout much of the third quarter. Specifically, following a revised 1.1% increase in July, August retail sales showed a modest month-over-month growth of 0.1%. Moreover, when excluding volatile categories such as automobiles, gasoline, building materials, and food services, core retail sales increased by 0.3% in August, building on a revised 0.4% rise in July. This core retail data is closely aligned with the consumer spending component of GDP. Consequently, the acceleration in consumer spending during the second quarter has established a robust foundation for further growth in the July-September quarter.

S&P 500 and Dow Jones Reach New Intraday Highs; Chinese concept stocks Exhibit Strong Performance

On September 17, the three major U.S. stock indices closed with mixed results. At the close, the Dow Jones Industrial Average fell by 15.90 points, or 0.04%, to 41,606.18; the Nasdaq Composite rose by 35.93 points, or 0.20%, to 17,628.06; and the S&P 500 increased by 1.49 points, or 0.03%, to 5,634.58. Although the S&P 500 did not achieve a record close, it extended its gains for the seventh consecutive session.

Intraday, the Dow Jones reached a peak of 41,835.28 points, and the S&P 500 touched a high of 5,670.81 points, both setting new intraday historical records.

(Source: uSMART HK)

Furthermore, among prominent Chinese concept stocks, Li Auto surged by 12.28%, XPeng Inc. rose by over 6% and closed up 1.46%, NIO Inc. increased by more than 5% and closed up 0.19%, Bilibili saw a 3.2% rise, JD.com gained 2.36%, Meituan ADR was up 1.42%, Alibaba increased by 1.32%, Pinduoduo rose by 1.21%, Tencent Holdings ADR was up 0.54%, and NetEase gained 0.31%.

(Source: uSMART HK)

Gold Prices Decline

On Tuesday, gold futures experienced a retreat as investors reduced their gold positions ahead of the Federal Reserve's interest rate decision, considering the potential for a 25 or 50 basis point cut.

Specifically, COMEX December gold futures fell by 0.52% to $2,595.30 per ounce by the close. Spot gold initially saw a slight increase, reaching a pre-European market high of $2,586.99. However, it subsequently declined, dropping over 0.8% to $2,560.90 during U.S. midday trading, moving away from the September 16 record high of $2,589.35.

In this context, Goldman Sachs has indicated that if the Federal Reserve implements only a 25 basis point rate cut, gold prices may experience a short-term decline but are expected to rebound to new highs. On the other hand, Jeffrey Gundlach, known as the "Bond King," anticipates a 50 basis point cut by the Fed on Wednesday. Meanwhile, JPMorgan CEO Jamie Dimon expects a rate cut but predicts it will be "unremarkable." The probability of a 50 basis point rate cut by the Fed in September remains approximately 63%.

How to Trade on uSMART

To execute trades on the uSMART HK APP, log in and click on "Search" at the top right of the page. Enter the security code, such as "Li Auto," to access the details page for trading information and historical trends. Click on "Trade" at the bottom right, select "Buy/Sell," and then enter the trade conditions before submitting the order. Please refer to the image guide below for further instructions:

(Source: uSMART HK)