US stocks stop falling. Does this mean a turning point?
If you don’t look at the trend of the entire trading day, you can’t see any signs of US stocks turning stronger during the trading session. The Dow Jones Industrial Average fell 1.39% to 25,409.36 points; the S&P 500 fell 0.82% to 2,954.22 points; and the Nasdaq rose 0.01% to 8,567.37 points. The fact is that the three major stock indexes fell by more than 3% at most, and even before the closing, the Dow Jones fell by nearly 1,000 points. Only at the end of the closing, long forces entered the market again to stabilize their sentiment, which narrowed the decline of several major indexes. What is more worthy of attention is the performance of the three major indexes in the later stages of the futures index, and the three major futures indexes all rebounded sharply after the session, among which the Nasdaq futures index rose by nearly 2%. This is the first rebound signal after the worst week since the U.S. stock market experienced the financial crisis.
History, the central bank does not take action, and the bear market is as long as the night! Without the central bank's expectations, there is little chance that the US stock market will stop falling in the short term. Fortunately, Trump asked the Federal Reserve to intervene in the market after the market, and Fed Chairman Powell also said that he would consider taking appropriate actions in due course. At the same time, there are reports that the United States is considering targeted tax cuts. It can be said that it is these expected releases that have temporarily stabilized the market.
So, will the global market alert be lifted?
The worst week since the financial crisis
On Friday, the three major U.S. stock indexes that fell sharply during the session closed mixed, the Dow Jones Industrial Average closed down more than 350 points, and plunged another thousand points during the session. The Nasdaq rose slightly, while the S&P closed slightly lower. Market concerns still come from the significant impact of the coronavirus on the global economy.
From the perspective of the whole week, US stocks hit the worst single-week performance since the 2008 financial crisis this week. The Dow Jones Industrial Average fell 12.36% in one week, the Nasdaq fell 10.54%, and the S&P 500 fell 11.49%. The three major stock indexes all recorded their biggest single-week decline since October 2008. In February, the Dow Jones Industrial Average fell 10.07%, the Nasdaq fell 6.38%, and the S&P 500 fell 8.41%.
in points, the Dow Jones fell more than 3,500 points, the biggest weekly decline ever. It fell 14.1% from an intraday record high set on February 12. The S&P 500 has fallen 11.5% so far, its worst weekly performance since the crisis, which has fallen about 13% from its last week high. The Nasdaq fell 10.5% this week, and is also nearly 13% below its record high.
From the perspective of market structure, large US technology stocks showed signs of stabilization at the weekend, with Apple falling 0.06%, Amazon falling 0.03%, Netflix falling 0.72%, Google rising 1.85%, Facebook rising 1.43%, Microsoft rising 2.42%, and Tesla falling 1.62%. These stocks fell significantly during the session. It is worth noting that the Philadelphia Semiconductor Index rebounded sharply, and the index's maximum intraday decline reached more than 3%.
large popular Chinese stocks rose across the board. Alibaba rose 1.49%, JD rose 0.29%, Baidu rose 0.06%; Huya Live rose 7%, Sogou rose 6.8%, 360 Financial rose 6.09%, and Pinduoduo rose 1.71%.
American analysts said that the reason for such a rapid sell-off was because the expectation difference was too strong. The market had never expected such a big impact on the new coronavirus. The biggest driving force for the US stock market to fall is hedge funds, algorithmic trading and quantitative strategies.
It is worth noting that the performance of the US stock market after the market can slightly subdue the panic. The three major U.S. stock futures indexes rose sharply after the session, with the Nasdaq rebounding nearly 2%.
significant stability maintenance expectations release
Facing the stock market's fall, Fed Chairman Jerome Powell finally spoke out on Friday. He said the central bank is monitoring the risks posed by the coronavirus to the U.S. economy and ensure action if necessary.
Powell said in the statement: "The fundamentals of the U.S. economy remain strong. However, the coronavirus poses a changing risk to economic activity. The Fed is closely monitoring developments and its impact on the economic outlook. We will use our tools and take appropriate action to support the economy." It is worth noting that the actual terms in the statement are far from the previous statements by Powell and other Fed officials.Their statements in the minutes of the monetary policy meeting in January and the recent statements by some Federal Reserve officials believe that interest rate cuts should not be cut at this time. However, with the sharp drop in the market, the market's expectations for the Fed's interest rate cut have rapidly heated up. Currently, the market believes that the probability of the Fed's interest rate cut in March is 100%.
also reported that the options under consideration include targeted tax cuts. Officials also discussed whether the White House should rely further on the Fed's rate cut, although the Fed said Friday afternoon that it would step in and take measures if necessary. The White House has not reached any decision on these options. Officials stressed that the dialogue was still preliminary and progressed smoothly.
When asked about a potential tax cut, a senior government official said there were numerous ideas being discussed and that the negotiations were "very preliminary". White House officials are expected to show President Trump a range of options later. A White House spokesman declined to comment further. Members of Congress have also begun discussing a multi-billion dollar supplemental aid program to help with the pandemic, and those discussions are expected to continue through the weekend.
After the U.S. stock market on Friday, U.S. President Donald Trump said he hopes the Federal Reserve will intervene as soon as possible to cope with the impact of the epidemic on the stock market and the economy. Trump said that he hopes the Fed will intervene in the market as soon as possible. Now the world is investing a large amount of funds to deal with the new crown epidemic, but the Fed does nothing, which has caused great harm to the country. The Fed should be synchronized with global central banks.
Can the global stock market alarm be lifted
With the emergence of the U.S. stock market rebound in the late trading, can the global stock market alarm be lifted? Historically, if the central bank had not taken action to deal with the rapid market decline, it would be difficult for the market to stop bleeding in the short term. This is both in 1987, during the 2008 financial crisis, or in the earlier financial crisis. This is not the role of deifying the central bank. In most cases, stocks are actually monetary phenomena. Only when the central bank takes action to stabilize expectations can the market usher in a turning point.
strategist Art Hogan (Art Hogan said: "What we are facing now is a very terrible global health panic, which has caused the complex supply chain to come to a halt. Therefore, we are currently under supply shock. If we want to develop along the COVID-19 path and cause damage to the economy, a looser monetary policy may help. Some investors in
believe that the current market may evolve into the 2008 financial crisis. In fact, this possibility is not too great. Because whether it is the 2008 financial crisis or other financial crises, it is essentially a debt crisis and a leverage crisis. Most of these crises broke out under the tightening of the central bank. From the current situation, the leverage level in the United States, except for the higher government, the leverage of enterprises is quite healthy, especially medium and large companies, with cash flow. From the perspective of the central bank's strategy, the global central bank last year There are all interest rate cuts, and the global market is currently in a relatively high state. Based on this, the possibility of a financial crisis caused by the new coronavirus is not high. The current panic is not only a return of expectations, but also an uncertainty about the interpretation path of the new coronavirus.
So, in the short term, has the market alarm been lifted? Analysts believe that further observation may be needed. The possibility of a V-shaped reversal in the US market immediately is not high. Even with the support of the Federal Reserve, the probability of such a situation is still low. Because the US stock market has reached a correction range, and it will take several months to get out of this range and hit a new high. Therefore, it is also necessary to continue to deteriorate in the future. If the bottom can be built here, the turmoil in the global market can basically come to an end. In addition, the epidemic is also constantly affecting the sentiment of investors. If it can be handled properly, the market can also stabilize.
This article comes from brokerage China
! The U.S. stock market experienced the worst week, and the futures index rose sharply after the market! Trump and Powell both spoke out
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Financial World
US stocks stopped falling 40 minutes ago. Does this mean a turning point?
If you don’t look at the trend of the entire trading day, you can’t see any signs of US stocks turning stronger during the trading session. The Dow Jones Industrial Average fell 1.39% to 25,409.36 points; the S&P 500 fell 0.82% to 2,954.22 points; and the Nasdaq rose 0.01% to 8,567.37 points. The fact is that the three major stock indexes fell by more than 3% at most, and even before the closing, the Dow Jones fell by nearly 1,000 points. Only at the end of the closing, long forces entered the market again to stabilize their sentiment, which narrowed the decline of several major indexes. What is more worthy of attention is the performance of the three major indexes in the later stages of the futures index, and the three major futures indexes all rebounded sharply after the session, among which the Nasdaq futures index rose by nearly 2%. This is the first rebound signal after the worst week since the U.S. stock market experienced the financial crisis.
History, the central bank does not take action, and the bear market is as long as the night! Without the central bank's expectations, there is little chance that the US stock market will stop falling in the short term. Fortunately, Trump asked the Federal Reserve to intervene in the market after the market, and Fed Chairman Powell also said that he would consider taking appropriate actions in due course. At the same time, there are reports that the United States is considering targeted tax cuts. It can be said that it is these expected releases that have temporarily stabilized the market.
So, will the global market alert be lifted?
The worst week since the financial crisis
On Friday, the three major U.S. stock indexes that fell sharply during the session closed mixed, the Dow Jones Industrial Average closed down more than 350 points, and plunged another thousand points during the session. The Nasdaq rose slightly, while the S&P closed slightly lower. Market concerns still come from the significant impact of the coronavirus on the global economy.
From the perspective of the whole week, U.S. stocks hit the worst single-week performance since the 2008 financial crisis this week. The Dow Jones Industrial Average fell 12.36% in one week, the Nasdaq fell 10.54%, the S&P 500 fell 11.49%. All three major stock indexes recorded their biggest single-week declines since October 2008. In February, the Dow Jones Industrial Average fell 10.07%, the Nasdaq fell 6.38%, and the S&P 500 fell 8.41%.
in points, the Dow Jones fell more than 3,500 points, the biggest weekly decline ever. It fell 14.1% from an intraday record high set on February 12. The S&P 500 has fallen 11.5% so far, its worst weekly performance since the crisis, which has fallen about 13% from its last week high. The Nasdaq fell 10.5% this week, and is also nearly 13% below its record high.
From the perspective of market structure, large US technology stocks showed signs of stabilization at the weekend, with Apple falling 0.06%, Amazon falling 0.03%, Netflix falling 0.72%, Google rising 1.85%, Facebook rising 1.43%, Microsoft rising 2.42%, and Tesla falling 1.62%. These stocks fell significantly during the session. It is worth noting that the Philadelphia Semiconductor Index rebounded sharply, and the index's maximum intraday decline reached more than 3%.
large popular Chinese stocks rose across the board. Alibaba rose 1.49%, JD.com rose 0.29%, Baidu rose 0.06%; Huya Live rose 7%, Sogou rose 6.8%, 360 Financial rose 6.09%, and Pinduoduo rose 1.71%.
American analysts said that the reason for such a rapid sell-off was because the expectation difference was too strong. The market had never expected such a big impact on the new coronavirus. The biggest driving force for the US stock market to fall is hedge funds, algorithmic trading and quantitative strategies.
It is worth noting that the performance of the US stock market after the market can slightly subdue the panic. The three major U.S. stock futures indexes rose sharply after the session, with the Nasdaq rebounding nearly 2%.
heavy stability maintenance expectations release
Fed chairman Jerome Powell finally spoke on Friday. He said the central bank is monitoring the risks posed by the coronavirus to the U.S. economy and ensure action if necessary.
Powell said in a statement: "The fundamentals of the U.S. economy remain strong. However, the coronavirus poses a changing risk to economic activity. The Fed is closely monitoring developments and its impact on the economic outlook. We will use our tools and take appropriate action to support the economy."
It is worth noting that the actual terms in the statement are far from the previous statements of Powell and other Fed officials. Their statements in the minutes of the monetary policy meeting in January, as well as the recent statements of some Fed officials, all believe that interest rate cuts should not be cut at this time. However, as the market plummeted, market expectations for the Fed's interest rate cuts quickly heated up, and the market currently believes that the probability of the Fed's interest rate cuts in March is 100%.
also reported that the options under consideration include targeted tax cuts. Officials also discussed whether the White House should rely on the Fed's interest rate cuts further, although the Fed said on Friday afternoon that it would Step in and take measures if necessary. The White House has not reached any decision on these options. Officials stressed that the dialogue is still preliminary and progress is smooth.
When asked about a potential tax cut, a senior administration official said there were many ideas being discussed and that negotiations were "very preliminary." White House officials are expected to show President Trump a range of options later. A White House spokesman declined to comment further. Members of Congress have also begun discussing a multi-billion-dollar supplementary aid program to help with the pandemic, and those discussions are expected to continue until the weekend.
U.S. stock market trading on Friday, U.S. President Donald Trump said he hopes the Fed will intervene as soon as possible to cope with the impact of the epidemic on the stock market and the economy. Trump said he hopes the Fed will intervene as soon as possible. Now the world is investing a lot of funds to deal with the new crown epidemic, but the Fed does nothing, which has brought great harm to the country. The Fed should be synchronized with the global central banks.
Can the global stock market alert be lifted
As the U.S. stock market rebound appears in the late trading scene, can the global stock market alert be What is enough to be lifted? Historically, if the central bank had not taken action to deal with the rapid market decline, the market would have difficulty stopping itself in the short term. This is in 1987, during the financial crisis in 2008, or in the earlier financial crisis. This is not the role of deified central banks. In most cases, stocks are actually monetary phenomena. Only when the central bank takes action to stabilize expectations can the market usher in a turning point. Art Hogan, strategist at
(Art "What we are facing now is a very terrible global health panic, which has caused complex supply chains to come to a halt," Hogan said. Therefore, we are currently under supply shock. If we are going to follow the COVID-19 path and cause damage to the economy, a looser monetary policy may help.
Some investors believe that the current market may evolve into the 2008 financial crisis. In fact, this possibility is not too great. Because whether it is the 2008 financial crisis or other financial crises, it is essentially a debt crisis or a leverage crisis. Most of these crises broke out under the tightening of the central bank. Judging from the current situation, the leverage level in the United States is relatively healthy after the government is high, especially for medium and large companies, with sufficient cash flow. Judging from the central bank's strategy, central banks around the world have cut interest rates last year, and the global market is currently in a relatively large state of water. Based on this, the possibility of a financial crisis caused by the new coronavirus is not high. The current panic is both a return to expectations and an uncertainty about the path of the novel coronavirus.
So, in the short term, has the market alarm been lifted? Analysts believe that further observation may be needed. The possibility of a V-shaped reversal in the US market immediately is not high. Even with the support of the Federal Reserve, the probability of such a situation is still relatively low. Because the US stock market has reached a correction range, it will take several months to get out of this range and hit a new high. Therefore, it is also necessary to see whether the sentiment in the US stock market will continue to deteriorate. If we can build a bottom here, the turmoil in the global market will basically come to an end. In addition, the epidemic is also constantly affecting investor sentiment. If handled properly, the market can also stabilize.
This article is from brokerage China
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