1. Hello brothers and sisters, on the first day of the May Day holiday, the U.S. stock market came to a blockbuster bearish, the three major U.S. stock indexes fell sharply on Tuesday night, and more importantly, large technology stocks fell, as of the close, the Nasdaq index fell 2.04%, the S&P 500 fell 1.57%, and the Dow Jones index fell 1.49%; Microsoft fell 3.21%, Tesla fell 5.55%, international gold fell more than 2%, popular Chinese concept stocks fell, and the Nasdaq China Golden Dragon Index fell 3.23%, up 0.71% in April. Vipshop, Bilibili fell more than 5%, iQiyi fell more than 4%, JD.com, NetEase fell more than 3%, Weibo, Tencent Music, Baidu, Li Auto, Full Bang, Alibaba fell more than 2%, Futu Holdings, Pinduoduo fell more than 1%. NIO rose more than 2%, and Xpeng Motors rose slightly. So the question is, why did the U.S. stock market suddenly plummet, and what impact did it have on A-shares after the holiday? Dalong will tell you right away!
2. Why did the U.S. stock market suddenly plummet? The main reasons are as follows:
Reason 1: At 2 a.m. Beijing time on Thursday, May 2, the Federal Reserve will announce the interest rate decision, and at the same time at 2.30 a.m., Federal Reserve Chairman Powell will hold a press conference.
Reason 2: The economic data released by the United States before showed that the U.S. inflationary pressure continued to heat up and manufacturing activity contracted, which exacerbated the market's concern that the U.S. economy would fall into a stagflation phase, and these data showed that the risk of the U.S. economy falling into a stagflation phase increased, and the market is increasingly worried that the Federal Reserve will reduce the number of interest rate cuts this year, and may even not cut interest rates, which will lead to a sharp decline in U.S. stocks under pessimistic expectations.
Reason 3: Eight news organizations sued OpenAI and Microsoft for copyright infringement of their AI tools, causing U.S. tech giants to fall and dragging U.S. stock indices down
3. What will be the impact of the sharp drop in U.S. stocks on A-shares next week?
U.S. stocks fell sharply, and technology stocks fell, the FTSE China A50 Index fell 0.64% is a negative impact on A-shares, especially the technology sector, if it weren't for today's A-share market closure, it would fall today, but although the market is closed, this negative effect will be transmitted to the opening of A-shares next Monday, unless the U.S. stock market can rise on Thursday and Friday, or there is some good news, we don't have to worry too much, there is still time.
A-shares are now in a low-level area, after 2 months of decline has been fully adjusted, there is no big risk at present, in May, Dalong is optimistic about A-shares after the holiday first down and then up.
4. Will the U.S. stock market rise in the future?
Yes, regardless of whether the Fed cuts interest rates or not, U.S. stocks will rise, but the interest rate cut has risen more, and the interest rate has not been cut slowly, because now global funds are still flowing into U.S. stocks, and the long-term good performance of U.S. technology stocks has promoted U.S. stocks to continue to rise. Amazon and Meta, both from the technology sector, account for nearly a quarter of the market capitalization, which makes the index vulnerable to more violent fluctuations, to put it bluntly, as long as these tech giants continue to rise, US stocks can continue to rise, and these tech giants have also hit new highs in recent years.
In a word, although the U.S. stock market has fallen more in the short term, it is only a normal adjustment, and it will still rise in 1510 later, which is worth the long-term layout.
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!