May FOMC point arrangement

While the Dow rebounded against the previous day in the US stock market on the 1st, the NASDAQ and S&P 500 indices continued to decline. The FOMC, which is the biggest event of the week, ended, and the US 10-year bond yield and dollar index both fell, but as a result of the FOMC, the content of Chairman Powell's speech had both a positive and negative impact on the stock market.

First,The following 5 priorities of the May FOMCOrganize to
・Although there has been little progress in the process of suppressing the inflation rate to the target 2% in the past few months, implementation of additional interest rate hikes is negative.
・There is a better balance in simultaneous efforts to secure employment and control inflation,The job market continues to be in a state of “excess demand,” and labor supply sites are still tightIt's been done.
・Recent inflation statistics have not been able to bring greater confidence to the FED, and if confidence in achieving the 2% inflation target does not increase further,Implementing interest rate cuts is still not appropriateI made a decision.
・Inflation is expected to continue to decline, but it is changing slightly more cautiously than previously anticipated. It is uncertain how long it will take until confidence is built to achieve the inflation target.
・However,The scale of QT (quantitative tightening) was reduced from the current 60 billion dollars per month to 25 billion dollars from JuneI plan to let it happen.

The fact that no additional interest rate hikes were implemented gave the market price a sense of buying security, and although push buying into tech stocks etc. was temporarily connected, they became more cautious about achieving inflation targets and starting interest rate cuts, and sales dominance strengthened again. Also, while the ADP employment statistics announced recently were 184,000 cases, which greatly exceeded market expectations, private sector jobs remained at 8.48,000, and in response to an unexpected decrease from the previous month, no clear clue was obtained about the employment market. The market's focus will once again be narrowed down to the unemployment rate and average hourly wage growth to be announced tomorrow 3rd. Meanwhile,The reduction in the QT scale was able to greatly ease the pressure to raise funds in the capital market, and was the biggest catalyst for the market rebound towards JuneExpected as

There is still uncertainty as to when interest rate cuts will begin, and the wait-and-see mindset will continue to prevail until new clues are obtainedIt's likely to become. It seems that aggressive buybacks to semiconductor stocks will be a little further away, but funds are expected to return to MSFT, AMZN, GOOGL, etc. due to risk aversion.