At the beginning of last week, the U.S. stock market’s second quarter results for 2023 were fully disclosed, and the overall performance showed very obvious structural characteristics.

At the index level, earnings of S&P 500 constituent stocks continued to fall; Nasdaq constituent stocks took the lead in turning positive.

At the sector level, the interactive entertainment and semiconductor sectors recovered quickly; the energy, raw materials, and biopharmaceutical sectors continued to fall; comparing sector performance and profit growth, whether profits can support the index market will be the focus of the next stage.

At the macro level, the U.S. ISM non-manufacturing index rebounded more than expected in September to 54.5, reaching a high in the past six months, showing the resilience of consumption and employment in the non-manufacturing (services) industry.

If economic data continues to rebound, the possibility of the Fed becoming more hawkish than expected cannot be ruled out. There are now expectations from the former "Eagle King" of the Federal Reserve that the Federal Reserve may further raise interest rates.

The recent fundamental resilience shown in economic data, coupled with the trend of tighter monetary policy and the Ministry of Finance's large-scale bond issuance, continue to support the high level of U.S. bond yields.

Looking ahead to next week, U.S. stock indexes may experience short-term fluctuations amid expectations of interest rate hikes, but there will be less pressure for deep adjustments.