Wall Street Rallies as China Concept Stocks Shine

On September 8th, Eastern Time, the US stock market experienced a strong day, with major indices rising and the Nasdaq Composite Index (IXIC) hitting a new record high. Simultaneously, Chinese assets saw a notable rebound during late trading hours, with most US-listed Chinese stocks showing an upward trend. The Nasdaq Golden Dragon China Index rose by 2.12%, bringing its cumulative gains since the beginning of the year to nearly 20%.

36Kr Takes Center Stage

Among the numerous Chinese stocks, 36Kr's (KRKR.O) performance was particularly impressive. The stock experienced over 20 trading halts due to extreme volatility during the session, with the price soaring as high as 307% before ultimately settling at gains of nearly 93%. Founded in 2010 and headquartered in Beijing, 36Kr is a service platform focused on technology innovation and entrepreneurship. The company started as a media platform focusing on startups, covering news about startups, venture capital, the internet, and the tech industry. Over the years, 36Kr has expanded its operations to encompass three core segments: online content and media business, enterprise services and financing matchmaking, and innovative conferences and events. The company listed on the Nasdaq in the US in 2019, earning the title of "China's first technology media stock." The significant increase in its share price also boosted the performance of other Chinese stocks.

Broad-Based Gains Among Chinese Stocks

Other stocks like NetEase saw gains of over 7%, Baidu rose by over 6%, and both JD.com and Alibaba experienced gains of over 4%. Additionally, Xiaopeng Motors and NIO rose by over 3% respectively, and Bilibili, Li Auto, and Pinduoduo also saw modest gains.

Market Expectations and Interest Rate Impact

This surge marks the Nasdaq's 21st new high trading day of the year. Given the disappointing jobs report for August, an interest rate cut next week seems almost certain. However, the potential size of this cut and the extent to which the Federal Reserve will further cut interest rates in the future remain a topic of discussion. According to data from CME, traders expect the Federal Reserve's interest rate at the end of the year to be between 3.5% and 3.75% with a probability of approximately two-thirds. This is equivalent to the Federal Reserve cutting interest rates by 25 basis points at each of its remaining three meetings in 2025. Traders expect the year-end interest rate to decline by one percentage point with a probability of 9%, implying that there will be at least one larger interest rate cut.

Positive Outlook Ahead

David Lefkowitz of UBS Global Wealth Management stated that even with the market soaring to new heights, there is still room for further growth. He said, "US stock markets have seen a series of record highs in recent weeks, driven by better-than-expected second-quarter earnings, strong performance from AI-related companies, and a higher probability of the Federal Reserve cutting interest rates in September." He added, "We believe the bull market will continue, and we expect the S&P 500 to reach 6800 points by June 2026." Michael Wilson, a strategist at Morgan Stanley, believes that short-term market volatility could pave the way for strong performance at the end of the year and in 2026. He believes that although the Federal Reserve remains focused on inflation, weak but not "terrible" labor market data creates uncertainty about the magnitude of interest rate cuts in the short term.

Data-Heavy Week Ahead

Investors are currently preparing for a data-heavy week, including the release of two key inflation reports – the Producer Price Index (PPI) and the Consumer Price Index (CPI).