On Friday, Eastern Time, driven by Netflix's financial report and a general rise in technology stocks, the three major U.S. stock indices closed higher collectively, with the S&P 500 and the Dow Jones Industrial Average both setting new historical closing highs. In addition, popular Chinese concept stocks rose across the board, with the NASDAQ Golden Dragon China Index up by 3.03%!

It is worth noting that the U.S. stock market has been on an upward trend for six consecutive weeks, a clear continuation of a bull market. So, what are the reasons for the sustained rise in U.S. stocks? Can U.S. stocks continue to rise? What impact will it have on A-shares? Let's delve further!

Two major reasons for the six-week consecutive rise in U.S. stocks!

Reason 1: The Federal Reserve has entered a rate-cutting cycle, positively impacting the rise of U.S. stocks. On September 18, the Federal Reserve announced a reduction of 50 basis points in the target range of the federal funds rate, bringing it down to between 4.75% and 5.00%.降息通常会导致市场流动性 to ease, which is a significant positive for U.S. stocks, hence the rise.

Reason 2: Robust U.S. economic data has boosted U.S. stocks. Recently, many of the economic indicators released by the U.S. have far exceeded expectations, which also has a positive effect on U.S. stocks. Influenced by strong economic data, U.S. stocks have also risen.

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Can U.S. stocks continue to rise?

Currently, some overseas institutions believe that U.S. stock valuations are too high and may face adjustments. Taking the S&P 500 as an example, the forward price-to-earnings ratio is close to 22 times, significantly higher than the long-term average of 15.7 times. Coupled with excessively high expectations for corporate earnings, this implies that U.S. stocks are likely to experience a pullback in the near future.

However, the probability of U.S. stocks continuing to rise is relatively high, mainly due to the Federal Reserve's entry into a rate-cutting cycle and the robust U.S. economic data, which can allow U.S. stocks to command a certain premium. However, it is estimated that it will be challenging for U.S. stocks to surge as they did in the past.What is the impact on A-shares?

The rise in U.S. stocks has a positive impact on A-shares. Although it is true that the rise in U.S. stocks does not directly lead to an increase in A-shares, the rise in U.S. stocks indicates that the overall overseas environment is still good, and there is no bearish impact on A-shares. Therefore, as long as the internal factors of A-shares improve, they can also experience an increase.

At present, A-shares are at a critical time in a bull market, requiring "favorable timing, geographical advantage, and unity among people." Therefore, the rise in U.S. stocks is far better than the decline in U.S. stocks. In this way, A-shares can go further.

In summary, the U.S. stock market has continued to rise for six weeks, with the S&P and Dow Jones indices continuously setting new closing highs, mainly due to factors such as "Federal Reserve interest rate cuts and strong U.S. economic data." At the same time, the probability of U.S. stocks continuing to rise is relatively high, which also has a positive impact on A-shares.