02/09/2023
Thursday's news: Federal Reserve Chairman Jerome Powell will speak at the Economic Club of Washington on Tuesday. Until then, markets will be on edge. Powell's comments on deflation led investors to aggressively enter the market last week to push up stock prices and ignore the prospect of another central bank rate hike. As investors began to reassess expectations for the Fed's monetary policy stance due to the unusually strong U.S. January nonfarm payrolls report released last Friday (3), the market is expected to pay close attention to Powell's speech, especially his views on the labor market. Last week's U.S. nonfarm payrolls release far exceeded expectations and the strong rebound in the services PMI, data that further reinforced market concerns that the Fed will stick to its rate hike policy. The latest market news is more mixed, but the three major stock indices, the market investor mentality is unchanged, the current long profit taking is relatively large, the market sells off a lot of pressure, be careful to avoid the current hot stocks. Credit Suisse pointed out that based on the overheated labor market, the market is too optimistic from the stock trend, Credit Suisse believes that the previous rise in technology stocks is based on the market believes that the inflation-adjusted 10-year benchmark U.S. bond yields, that is, the U.S. 10-year inflation-protected bond (TIPS) yields lower, but TIPS yields have risen in the past four days, as TIPS yields rise, the stock attractiveness will also decline:, Credit Suisse also pointed out that the market has recently overheated in the short term and there is a need for a market pullback.
Technically, yesterday the S&P 500, Dow Jones, Nasdaq, the three major stock indexes are technical retracement, that is, profit-taking pressure is relatively large, especially technology stocks, represented by google, Microsoft, meta technology stocks, a moderate retracement, such technology stocks do not retrace in place, the S&P 500, Nasdaq index is difficult to organize an effective rebound, the current market is still dominated by oscillatory short, the S&P 500 support level near 4095, if 4095 volume fell below, the S&P 500 index will be further down, related stocks will also follow the index down, the analysts suggest that, for the time being, short-term do not hold technology-related large-cap blue-chip stocks. Choose some consumer, small metals, food stocks to choose hedge, market follow-up, if the market sudden positive, or negative, this analyst will be the first time prompt.