Last night, the three major indexes of U.S. stocks rose simultaneously. From a weekly perspective, Dow Jones Industrial Index rose for four consecutive weeks, up more than 4,000 points.
The rise of the stock market does not seem to be due to the improvement of the economy, but on the contrary, because the economic data is not ideal, the stock market has risen instead, and the reverse interaction between the US economy and capital market has entered a vicious circle.
11's rate hike in 75 points, there is almost no suspense, but for the rate hike after December, Fed is still hesitating.
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All three major indexes in the United States rose last night, and the gained exceeded 2.5%, and the highest increase in Nasdaq index rose 2.9%; based on index points, the Dow Jones Industrial Index rose 828 points at the close of last night.
The Nasdaq index fell two days ago, and the rise last night wiped out the decline of the previous two days in one fell swoop.
From a weekly perspective, the Dow Jones Industrial Average has risen for four consecutive weeks, and the increase is expanding. The first week rose 2%, the second week rose 1.15%, the previous week rose 4.9%, and the increase this week expanded to 5.72%. After four consecutive weeks of rising, the Dow Jones Industrial Average rose from 28,715 points to the current 32,861 points, an increase of 4,100 points.
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stock , the stock prices of Amazon and Apple , which just announced the quarterly report, are completely opposite.
Because the third quarter report was worse than market expectations, Amazon's stock price fell 7% last night; however, Apple's quarterly report also performed poorly, with revenue lower than expected, but the stock price rose by more than 7%. The market's explanation for this is that Apple's overall operating income set a record.
META, which fell sharply the day before, rose 1.3% last night. In addition, the increase of Google and Microsoft also exceeded 4%, and the increase of Intel even reached 10.66%.
New energy vehicle , Tesla rose 1.5%, but Wei Xiaoli from China continued to fall, NIO fell 2.9%, Ideal fell 4.8%, and Xiaopeng fell 6.4%.
And most Chinese stocks listed in the list generally fell, continuing the trends of A shares and Hong Kong stock during the day. Weibo fell 7.7%, Bilibili fell 6%, JD fell 4.2%, Baidu and Alibaba fell 3%.
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The rebound of the US stock market during this period feels more like trading for the upcoming recession.
Due to the decline in the stock market since this year, most of the reason is the continuous interest rate hikes by the Federal Reserve. Therefore, when the current economic performance is not as good as it is, the Federal Reserve may have to slow down the pace of interest rate hikes and even stop hikes, so as to cut interest rates in the future.
Out of this expectation, the market began to buy at lows and win a rebound.
The speech delivered by the Federal Reserve officials a few days ago also seemed to reveal the Federal Reserve's hesitation.
htmlO More than 0 officials have said that they should consider the impact of interest rate hikes on the economy and avoid the economy entering a hard landing. They also talked about the imminent preparations for slowing interest rate hikes., and the final official statement of the Federal Reserve will be announced to the market after the interest rate meeting next week.
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However, the two recent data may give the Fed more confidence in a significant rate hike in the short term.
First of all, the just-released U.S. core PCE price index further rose, up 0.5% from last month. On the same period last year, the increase reached 5.1%. The year-on-year data for last month was 4.9%, which shows that the increase is still expanding.
These data show that the U.S. inflation has not only not slowed down, but is still accelerating its upward trend, and has spread from food and energy to other prices.
Secondly, the GDP data released the day before showed that after two consecutive quarters of decline, GDP in this quarter increased by more than expected, which also provided important support for Federal interest rate hikes .
No wonder the US Treasury Secretary Yellen dared to publicly claim that he had not seen any signs of a US economic recession. The implication is that economic growth is not bad, inflation is still high, and the Fed's interest rate hike behavior needs to continue.
So, although the US stock market is still rising at the moment, it is very likely that it will fall sharply because of the sudden realization that the Fed will raise interest rates significantly.
This point deserves investors' deep attention.
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