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US stock market report – Fed raises rates, Chinese stocks surge

Ahead of the Federal Reserve, decision the Chinese stock market jumped more than 12% in Wednesday’s session after the government announced wide-ranging support for the market and economy. It marks a stark turnaround from the 24% fall for the market in March alone.

In a wide-ranging release, the government indicated the crackdown on big tech would be coming to an end, along with property taxes and that progress had been made on ensuring the future of companies listed on US stock exchanges.

The result was a 37% jump in Alibaba (NYSE: BABA), a 39% increase in both JD.com (NASDAQ: JD) and Baidu (NASDAQ: BIDU), and a more than 50% gain from Pinduoduo (NASDAQ: PDD).

US Fed raises rates

Turning to the US and all three benchmarks were stronger with the Nasdaq gaining 3.7% despite the Federal Reserve making the well-flagged decision to hike the cash rate by 0.25%. They now predict seven more increases despite the impending threat of an oil price driven recession.

The S&P 500 and Dow Jones also gained, adding 2.2% and 1.6%.

In further positive news, the fourth round of peace talks between Ukraine and Russia appeared to be making progress, offering another potential catalyst.

Berkshire Hathaway unstoppable

In stock-specific news, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) class A shares are now sitting above US$500,000 a pop. Bucking the market volatility, shares are up 10% so far this year and 21% in the last six months.

I recently recorded a podcast episode with analyst Owen Rask reflecting on the latest Berkshire Hathaway shareholder letter and sharing 10 pieces of Buffett’s wisdom. Click here to listen now.

US stock market movers

Here’s how other popular US stocks performed on Wednesday.

Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to follow this positive lead from US markets to open higher this morning. For a round-up of the latest news, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.


Disclosure: At the time of publishing, Drew owns shares in Alibaba.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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