U.S. Stocks Two Weeks Third Times Fuses! Whether The Fed'S Bullets Are Used Up To Lead The Market?

Yesterday, the three major indexes of the United States dropped sharply, and the S & P 500 index fell 8.14%, triggering the fusing mechanism and stopping for 15 minutes. This is the third time in two weeks that U.S. stocks have broken down.

The Federal Reserve rescues the market radically unexpectedly.

On Sunday, the US Federal Reserve cut interest rates urgently, and at the same time launched a $700 billion quantitative easing plan, which should have been good news for the market. However, after the announcement, US stock futures fell 5% to the limit line.

Market doubts about the US economy

There are two reasons for this. First, the Federal Reserve is so eager to launch bailout policy and the market is much larger than the market expected. The market doubted whether the Federal Reserve predicted or saw the economic data that the market did not know, and the economic data showed that the epidemic would have a more serious impact on the US economy.

Whether the Fed's bullets are used up to lead the market?

Second, the market is worried that the Federal Reserve will destroy all the bullets, and it is still in the early stages of the development of the epidemic in the United States. If the next economy needs more policy support, the Federal Reserve will have nothing to do.

And the reason for the accelerated downfall is that President Trump admitted that the epidemic could continue into July or August, making the market more pessimistic about the economic impact.

Next, perhaps one of the most important news for the market, is to see the White House plan for the epidemic on Wednesday or Thursday, which may include tax cuts for consumers and assistance to the aviation industry.

The market has yet to see the bottom of the market.

In the overall market, emotions are still very scare. Last week, a continuous decline has caused many institutional investors to break up positions, or before they fall to the bottom, they have exhausted their cash, so the market has not seen the bottom of the market. More investors want to see the epidemic in the United States stabilized and improved after the economic impact of more data analysis, and then re valuation and analysis of the market. Therefore, the shock of US stocks may not be over yet.