On October 2, the Fed entered a rate-cutting cycle, and there are three possible market trends after the holiday. The October Federal Open Market Committee (FOMC) Meeting is likely to result in a drop of 25 basis points. The interest spread between both sides continues to decrease, and domestic expectations for reserve requirement ratio cuts and interest rate reductions have significantly increased.

On October 30, the Federal Open Market Committee (FOMC) Meeting has three possibilities. The first is to drop interest rates by 25 basis points, which meets market expectations, and the Fed enters a rate-cutting cycle. This would be beneficial for global stock markets, and a slight increase in the Shanghai Composite Index, breaking through 3900 points, is to be expected.
The second option is to drop interest rates significantly by 50 basis points, far exceeding market expectations, entering a rapid interest rate cut cycle. A significant rate cut is very beneficial for the stock market, leading to a substantial rise in U.S. stocks and accelerating the rise of Asian-Pacific stock markets. The possibility of the Shanghai Composite Index surpassing 4000 points is very high.
The third scenario is that there is no interest rate cut, which is below market expectations. Global stock markets are at high levels, with some profit-taking as they enter a rate-cutting cycle. If there is no rate cut, US stocks will drop significantly, and global stock markets will follow suit. The Shanghai Composite Index is likely to retract to 3700 points. I have repeatedly emphasized that the previous major bull markets occurred during the Fed's rate-cutting cycles. In October, the Fed is expected to cut rates by 25 basis points, and the likelihood of a domestic reserve requirement ratio cut and rate reduction increases significantly, leading to a substantial rise in the Shanghai Composite Index. The Shenzhen Component Index and ChiNext have higher market activity, and their gains will surpass that of the Shanghai Composite Index.
The market outlook for October is very optimistic, with the three major indexes slowly climbing, making the bull market trend irreversible. Even if there is a certain degree of pullback, it will not change the upward trend. After a hundred battles in yellow sand, one will not return until the city of Loulan is broken. Stay confident in the bull market, and wish everyone good luck after the holiday! #打榜优质内容 #