Last Friday, the Federal Reserve Chairman spoke at the global central banks' annual meeting, declaring that the time for interest rate adjustments has arrived, hinting at upcoming rate cuts. This move was regarded by Wall Street as one of the strongest signals for rate reduction to date. The major U.S. stock indices ended on a high note; the Dow Jones rose by 1.1%, the S&P 500 increased by 1.1%, and the tech-rich Nasdaq climbed 1.4%, with the semiconductor index up by approximately 2.8%. Over the week, these indices saw consistent gains, with investors showing optimism about the easing of monetary policy. The Dollar Index retreated to its yearly low, though it remained just above the critical 100 level. Meanwhile, gold prices in New York reached $2550 per ounce, poised to challenge historic highs, and oil prices on Friday rose nearly 2.5%. In a notable surge, Bitcoin rocketed by nearly 8% in a single week, nearing the $65,000 milestone. The Taiwan stock market also saw significant advancement, with an increase of 167 points in the Friday night session.

The following details the performance of significant stocks last Friday: Apple (AAPL-US) saw an increase of 1.0%. Microsoft (MSFT-US) went up by 0.3%, while Facebook (META-US) dropped by 0.7%. Amazon (AMZN-US) gained 0.5%, and Google (GOOG-US) rose by 1.1%. Nvidia (NVDA-US) jumped 4.5% ahead of its highly anticipated financial report due August 28, referred to as 'Nvidia’s Moment' by Wall Street. This week was also remarkable for server manufacturers like Super Micro Computer (SMCI-US), up 1.3%, and semiconductor leaders like AMD (AMD-US) up 2.1%, Broadcom (AVGO-US) up 2.5%, with Micron (MU-US) bucking the trend with a 1.3% fall. Additionally, Taiwan Semiconductor ADR (TSM-US) nearly saw a 3.0% increase, and Tesla (TSLA-US) rose by 4.6%. The Intel AI PC stock (INTC-US) saw a rise of 2.2%, and Dell (DELL-US) increased by 2.8%. Eli Lilly (LLY-US), a major pharma, slightly dropped by 0.1%, but the global healthcare ETF IJX-US, influenced by Eli Lilly, continued to rise by 0.8%, achieving historic highs for nine consecutive days. The small-cap Russell 2000 index greatly increased by 3.2%, and the Nasdaq NBI biotech index was up 1.1%. Indices like BDI saw a 4.2% rise over the week, and the BCI Cape Index rose by more than 12%.

From the above data, it's clear that the Federal Reserve is committed to a long-term easing of interest rates. However, Powell also reassured the public that the economy is not facing a recession. This enhances the positive impact for small and medium-sized businesses which have suffered under high rates in recent years, resonating with the significant rise in indexes like the Russell 2000 and Nasdaq NBI biotech index, both edging closer to new highs. Post-central bank meeting, the focus shifted to Nvidia's financial disclosures, with the market predicting a slowdown in revenue growth but an increase in overall revenue.

On a different note, renewed conflict in the Middle East on Sunday saw the Hezbollah in Lebanon launch rockets and drones at Israel, which responded in kind. Iran did not officially engage in the conflict, which still influences ongoing cease-fire negotiations. This ongoing crisis in the Red Sea region remains a critical point of attention!

Turning back to the Taiwanese stock market, everything aligns with expected trends. With the renewed conflict in the Middle East and Iran’s non-committal stance, the oil market should remain relatively stable, while gold prices are poised to challenge historical highs. Keep an eye on companies like Chia Lung (9955-TW) and King Yee Ding (8390-TW), which hold promising positions in our bullish investment portfolio. The Taiwanese stock index, which started low but made substantial gains on Friday, seems to have preemptively responded to the Fed Chair’s remarks, and, despite Nvidia’s financial report, I don’t foresee it altering the ongoing consolidation pattern in U.S. stocks before the presidential elections.

In other aspects of our investment portfolio, the Bitcoin-related stock Qing Yun (5386-TW) saw a dramatic surge to its daily limit early on Friday, potentially reaching new milestone dividends (dividend yield of 7.2 NT$). Given the recent surge in Bitcoin over the past three days, it seems the excitement for Qing Yun is just beginning. This has been a frequent highlight in this column, being recommended multiple times over the past month alone. Support for cryptocurrency-related stocks, particularly Qing Yun, reflects our bullish long-term outlook on cryptocurrencies.

As we look at other stocks, the prospects remain strong for maritime giants and biotech leaders, with better technical prospects seen for Wan Hai (2615-TW) and Mytime Bio (1795-TW). In the semiconductor space, our focus remains on Via Technologies (2388-TW), with this week's critical level at 150 NT$. For photonic silicon investments, Opto Tech (4979-TW) is most promising, and for heavy electric machinery, Asia Plastic (1514-TW) tops our list.

As the Taiwanese bull market regains its footing, I encourage investors to take this opportunity for significant gains. For stock selections and investment details, refer to this morning's freshly recorded free member video on the official YT channel, 'Taiwan Stock Strategy.' For those navigating these risky market conditions, I invite you to join my LINE group for personalized advice.

Stay tuned for the latest developments, and place your investment strategies confidently under the guidance of seasoned strategies. Taiwan Stock Strategy is your gateway to mastering global markets. For further assistance, call the hotline at 02-2653-8299.

Article Source: Analyst Ding-Tai Chiu / Henda Investments

Our company’s stock recommendations are devoid of improper financial interests. Past performance does not guarantee future profitability. Investors should independently evaluate and assume responsibility for the risks associated with their investments.

Last edited at：2024/12/16