Tonight, the technology stocks in the U.Sstock market are surging!

On the evening of October 27, Beijing time, several technology stocks in the U.Sexperienced significant gains, with Intel rising over 11%, Amazon almost 8%, and the Nasdaq index increasing by more than 1%. Chinese concept stocks also showed strong performance, with the Nasdaq China Golden Dragon Index rising by 1.4%.

On the same day, multiple favorable developments emerged for Chinese assets.

The Surge of U.S

Tech Stocks

After experiencing some adjustments in the preceding days, U.Stechnology stocks finally rebounded on the night of October 27. By around 10 PM, the Nasdaq index had risen over 1%, the S&P 500 index increased by 0.4%, while the Dow Jones Industrial Average saw a slight declineChinese concept stocks collectively strengthened, with the Nasdaq China Golden Dragon Index rising by 1.4%.

Several tech giants exceeded market expectations in their earnings reports, boosting market sentimentAmong large tech stocks, Intel rose over 11%, exceeding a market cap of $150 billion; Amazon jumped nearly 8%, surpassing a market cap of $1.33 trillion

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Tesla saw an increase of more than 2%, while Microsoft rose more than 1%. In terms of Chinese concept stocks, Pinduoduo and Li Auto surged over 3%, Alibaba increased nearly 2%, iQIYI rose close to 6%, and Lufax Holdings gained nearly 4%.

On the information front, data released on Friday showed that the U.Score PCE price index increased by 3.70% year-on-year in September, the lowest level since May 2021, matching expectations while down from the previous figure of 3.90%. The month-on-month rise in the core PCE price index stood at 0.3%, in line with expectations, and up from a previous value of 0.10%. Personal spending increased by 0.7% month-on-month in September, exceeding the expected 0.5% increase, while actual personal consumption increased by 0.4% against an expectation of 0.3% and a previous value of 0.1%.

Previous reports released on Thursday indicated that the U.S

GDP growth rate for the third quarter reached 4.9%, the fastest in nearly two years, surpassing market expectations of 4.5% and previous figures of 2.1%. Continued growth in personal consumption and private investment has significantly impacted the positive overall economic indicators, with figures showing a noticeable recovery in industrial profits.

According to CICC, inventory rebounds significantly contributed, indicating that stock replenishment may have quietly begunWhen excluding inventory, final sales also remained strong, indicating that internal demand within the U.Seconomy continues to expand steadilyFurthermore, the substantial growth in private consumption expenditure in the third quarter demonstrates robust consumer purchasing capacity, which contradicts the popular view that excess savings are depleting

CICC believes that robust GDP supports the notion that U.Sinterest rates will remain higher for longer, but it will have limited influence on the Federal Reserve's interest rate decisionsThe Fed is most likely to pause rate hikes next week, awaiting more data from the fourth quarter.

Intel and Amazon Report Earnings Above Expectations

Recent financial reports revealed that chip giant Intel's third-quarter performance and guidance for the fourth quarter exceeded market expectationsIn the third quarter, Intel's revenue was $14.2 billion, down 8% year-over-year, but surpassing the market expectation of $13.54 billion

Revenue from client computing was $7.9 billion, down 3% year-over-year but higher than the forecast of $7.4 billion; revenue from the data center and AI sector was $3.8 billion, down 10% from the previous year, whereas market expectations were for $3.9 billionIntel reported a net profit of approximately $300 million for the third quarter, with an adjusted earnings per share (EPS) of $0.41, both above expectationsIntel anticipates that its adjusted revenue for the fourth quarter will be between $14.6 billion and $15.6 billion, exceeding the market expectation of $14.35 billion, and predicts an adjusted gross margin of 46.5%, compared to the expected 44.2%.

In the third quarter, Intel's data center revenue was $3.8 billion, down 10% year-over-year, while the overall decline for the first half of the year was 28.5%. Intel's CEO stated in the earnings conference that signs of normalization in the data center market have emerged, but Nvidia continues to be a formidable competitor that Intel needs to challenge

The surge of generative AI this year has propelled rapid growth in the data center market, with most chip demands directed towards Nvidia's data center GPU products, making this the biggest and fastest-growing revenue source for Nvidia.

Intel's core PC business revenue achieved $7.9 billion in the third quarter, down only 3% year-over-year, significantly narrowing from a 26% decline over the first half of the yearCFO David Zinsner noted in the earnings report that all business segments performed better than expected, with the personal computer business standing out the most.

Amazon's earnings also significantly exceeded market expectations

The company's third-quarter revenue rose 13% year-over-year to $143.08 billion, beating the estimated $141.6 billion, with net profit soaring to $9.879 billion, an increase of over 243% year-over-year; diluted earnings per share were reported at $0.94, well above the market expectation of $0.60. Breaking down the business, the e-commerce sales revenue, which is central to Amazon's operations, continued its recovery with a year-on-year increase of 6%, reaching $57.267 billion, compared to a 5% increase in the previous quarterFurthermore, Amazon's advertising services generated $12.06 billion in revenue, marking a 25% year-on-year growth, while subscription services brought in $10.17 billion, up 13% year-over-year.

Amazon's CEO Andy Jassy indicated that the company achieved strong business growth in the third quarter, significantly reducing costs and improving delivery speeds as an e-commerce platform

The growth rates of AWS (Amazon Web Services) cloud services have stabilized, while advertising revenue has seen staggering increasesJassy also mentioned that the company has signed several new agreements with clients that will take effect this month, which could drive significant growth for the cloud department due to the rising demand for generative artificial intelligence.

He stated that Amazon aims to become a leading player in the generative AI sector, a technology capable of generating texts or images based on vast datasetsJassy described this technology as representing a potential revenue stream of “hundreds of billions of dollars” for AWS over the next several yearsWhile it remains unclear how much these applications have driven sales in that segment, he asserted that the department's business growth is occurring “very, very quickly.”

Chinese Assets Welcoming Multiple Positive Developments

It's noteworthy that on October 27, several favorable developments emerged for Chinese assets.

Firstly, further signs of economic recovery in China have been observed, with continuous improvement in the profits of industrial enterprises.

Data released on the 27th indicated that industrial companies' profits have gradually rebounded each quarter, with profits turning from a decline to an increase in the third quarter

In the first three quarters, the profits of large-scale industrial enterprises dropped by 9.0% year-on-year, a significant improvement compared to declines of 7.8% and 12.4% in the first half and first quarter, respectivelyLooking at the quarterly breakdown, profits for the first and second quarters fell by 21.4% and 12.7% respectively, while profits in the third quarter increased by 7.7%, marking the first increase after five consecutive quarters of decline, indicating a trend of accelerating recoveryMonthly data showed that in September, the profits of large-scale industrial enterprises rose by 11.9% year-on-year, achieving double-digit growth for two consecutive monthsIn the third quarter, revenue from large-scale industrial enterprises increased by 0.3% year-on-year after two consecutive quarters of declines, driving a rapid improvement in profits.

Secondly, a significant development occurred between China and the U.S

On October 26, local time, Foreign Minister Wang Yi met with U.SSecretary of State Antony Blinken in WashingtonWang stated the need to push for a quick return of China-U.Srelations to a healthy, stable, and sustainable development trajectory.

Additionally, on October 25, a video meeting was held between the Chinese and U.Sfinancial working groups, co-chaired by deputy-level officials from the People's Bank of China and the U.STreasury Department, along with participants from the National Financial Regulatory Administration, the Federal Reserve, and the U.SSecurities and Exchange CommissionThe two parties engaged in professional, practical, candid, and constructive communication on topics concerning monetary and financial stability, financial regulation, sustainable finance, anti-money laundering and anti-terrorist financing, as well as global financial governance

Both sides agreed to maintain communication.

Thirdly, for the first time in nearly three months, northbound funds recorded a net inflow into A-shares for two consecutive daysWind data indicated that northbound funds accelerated their entry into the market in the afternoon of the 27th, with a total net purchase of 4.668 billion yuan, marking two consecutive days of buyingAnalysts pointed out that the current valuation of the Chinese capital market is extremely attractive.

Around 9 PM on the evening of the 27th, the central bank released its 2023 report on the internationalization of the RMBThe report clearly indicated that it will continue to optimize policies regarding cross-border capital management for international investors investing in domestic bonds and stocks, support more central banks and monetary authorities to include the RMB in their reserves, and create a friendly investment ecosystem for RMB assets that better meets the needs of global investors