August 23 Market Analysis

Powell's speech at the Jackson Hole annual meeting clearly indicated a dovish shift in the Federal Reserve and suggested that interest rates might be cut in September. This news immediately triggered a frenzy of global assets, including stocks, bonds, commodities, and digital currency markets.

US stocks rebounded across the board, supported by Powell's dovish signals. The three major indices all rose more than 1%. Among them, the small-cap indexes rose more than 3%, and the S&P 500 and the Dow were approaching historic highs. Tech giants Nvidia and Tesla both rebounded more than 4%, while regional bank stocks also showed strength. At one point, their ETFs rose more than 6%. Although the overall increase in China Securities was small, with an increase of 0.3%, Station B rebounded 15% the day after the earnings report was released.

In terms of the international situation, large-scale attacks by Hezbollah in Lebanon and Israel's counterattack have heightened regional tension, and the market is paying close attention to this. At the same time, the news that the founder of Telegram was arrested in France also affected the relevant digital currency market. Toncoin prices once plummeted by more than 20%.

In the bond market and foreign exchange market, Powell's speech led to a sharp drop in two-year US bond yields. The US dollar index hit a new low in more than a year, while both the pound and yen strengthened significantly. Crude oil and gold prices also rose due to market expectations of interest rate cuts.

In the Asian market, China's A-shares rose slightly, while Western Development and Huawei concept stocks showed active performance, while the Hong Kong Stock Technology Index fell slightly. NetEase fell by more than 10% after the results were announced.

These developments show that global financial markets are closely watching the Federal Reserve's next steps, and also reflect the rapid response of market participants to various geopolitical events.

======= I am a dividing line =======

Zoom online sharing session

MY Moomoo account opening link 🔗

Crossing Malaysia Through America 2.0 Offline Sharing Session (Shelon)