1. Good morning, brothers and sisters, the three major U.S. stock indexes fell slightly on Thursday night, as of the close, the Dow Jones Industrial Average fell 375.12 points from the previous trading day to close at 38085.80 points, a decrease of 0.98%, the S&P 500 stock index fell 23.21 points, or 0.46%, to close at 5048.42 points, and the Nasdaq Composite Index fell 100.99 points, or 0.64%, to close at 15611.76 points, so the question is? Why did the U.S. stock market fall suddenly, and what impact will it have on the A-share market?
2. Why did U.S. stocks fall last night?
The decline in U.S. stocks last night was mainly due to the announcement on Thursday night that the U.S. GDP grew by 1.6% in the first quarter and was significantly lower than expected, causing the Fed to directly postpone the expectation of a rate cut to December, which led to the decline of U.S. stocks last night, but it has been calculated, the U.S. stock market fell 2% lower last night, and it has risen to only 0.64% by the close, which is already very good.
There is no systemic risk in U.S. stocks now, and the adjustment has been completed, which will not affect the rise of U.S. stocks, no matter how the Fed is tossing this year, how many interest rates will be cut once, and the U.S. stock market has the potential to continue to rise to new highs.
3. Will the decline in U.S. stocks have any impact on A-shares today?
Although the decline in U.S. stocks has a negative impact on the opening of A shares today, Dalong feels that A shares will continue to rise, because A shares have been adjusted for 2 months from the beginning of March to now, and they have bottomed out.
Dalong is optimistic that A-shares will start a new wave of gains in May, so Dalong will continue to buy low now. The logic of why Dalong is optimistic that A-shares will start to rise in May is as follows:
(1) From March to now, A-shares have fallen for 2 consecutive months, and most sectors have adjusted by 10%-30%, which is sufficient for the adjustment, and A-shares now have the conditions to rise.
(2) April is the last time for the release of quarterly reports and annual reports, and all kinds of thunderstorms are announced at the end of the month.
(3) However, remind everyone that Dalong is optimistic that this wave of A-shares in May is only a rebound, not that the bull market is coming, and it is expected that A-shares will continue to fall into a few months of shock adjustment after rising 1-2 months, so remember a sentence, run if you earn, and discount your legs when you are late.
4. Will the U.S. stock market rise in the future?
Dalong first said the answer directly, yes, there is no negative or risk in US stocks now, and the Fed will not affect the rise of US stocks, global funds are still flowing into US stocks, and US stocks are expected to raise interest rates to a record high in the future.
There are three main reasons why Dalong is bullish on U.S. stocks:
First, the situation in the Middle East has eased, there is no signal of further conflict between Iran and Israel for the time being, risk aversion has regressed, gold has fallen, and U.S. stocks have risen.
Second, the US PMI unexpectedly cooled down in April, and the expansion rate of US business activity slowed to the slowest in four months, which may increase the probability of the Fed cutting interest rates this year.
At present, the U.S. stock market is continuing to be bullish and breaking through new highs, but it also reminds everyone that although the U.S. stock market is bullish, it is also at a high level.
As the world's largest economy, the United States has been in a leading position in economic development, which has provided strong support for the rise of the U.S. stock market. Over the past few decades, the U.S. economy has experienced several recessions and recoveries, but overall has maintained steady growth. Especially in the fields of information technology, biotechnology, finance, etc., American companies have been in the leading position in the world, providing a strong impetus for the rise of the U.S. stock market.
It's not easy to code words, hard work to give Dalong homeopathic a thumbs up and support, with everyone's encouragement and support, Dalong has the motivation to keep sharing, I wish you all to eat meat every day!