Fed Raises Rates 25 Basis Points; US Stocks Slip Intraday

The Federal Reserve held its policy meeting in the early hours and announced a 25 basis point rate increase, while raising its 2026 forecasts for economic growth and inflation. Affected by the decision and the accompanying remarks, US stocks weakened during intraday trading. With this rate increase delivered, uncertainty over the Fed's monetary policy has been clearly resolved.

China's A-share market fluctuated and rebounded yesterday, with trading volume somewhat larger than the previous day. At the close, the Shanghai Composite Index rose 0.71%, the Shenzhen Component Index gained 1.26%, the ChiNext Index advanced 1.96%, and the STAR 50 Index rose more than 4%. Combined turnover in the Shanghai and Shenzhen markets reached RMB 1.84 trillion, and more than 4,100 stocks across the market gained. On the board, sectors including computing power hardware, PCB, optical fiber, CPO, liquid-cooled servers, and semiconductor materials showed strong performance, while construction machinery and other sectors were relatively weak. The window for third-quarter earnings disclosures is approaching.

Technology sectors rebounded across the board yesterday. In the computing power hardware sector, Aohong Electronics recorded a fourth consecutive limit-up, Bohui Technology posted a third consecutive limit-up with a 20% gain, Huaci shares and Tongding Interconnection achieved two consecutive limit-ups, and Chaozhou Electronic and Shuangxing New Materials extended their gains. Weighted names including Zhongji Innolight, Eoptolink, Cambricon, and Dongshan Precision all rose more than 5%. In the chip supply chain, Zhongjing Technology recorded a second consecutive limit-up, while Lion Microelectronics, Youyan Silicon, and Youyan New Materials hit the limit-up. The semiconductor sector had previously undergone a sustained deep correction.