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US Market Outlook: Will a bear market arrive in 2025? Long-term, an opportunity to buy in reverse after a sharp rise in ViX = the Bofa Dow average started at $58 higher

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moomooニュース米国株 wrote a column · 2 hours ago
US Market Outlook: Will a bear market arrive in 2025? Long-term, an opportunity to buy in reverse after a sharp rise in ViX = the Bofa Dow average started at $5...
Good evening to all Moomoo users!This is the reading for tonight's NY stock.
Market Overview
The US market started, and the Dow Jones Industrial Average, which consists of excellent stocks, rose 58.47 dollars to 39556.01 dollars, and the Nasdaq Composite Stock Price Index, which has a high high-tech stock ratio, rose 48.34 points to 16793.64. The S&P 500 average, which consists of stocks of 500 major US companies, is 7.72 points higher at 5351.88.
US Market Outlook: Will a bear market arrive in 2025? Long-term, an opportunity to buy in reverse after a sharp rise in ViX = the Bofa Dow average started at $5...
Top news
Awaiting the US Consumer Price Index (CPI) announcement, chip stocks have almost risen, and gold prices have also rebounded
Wall Street predicts that the year-on-year rate of increase in the US consumer price index (core CPI) in July will record a low in the past 3 years or more, and it is expected that it will support the Fed's interest rate cut observations.
Citi reports that when the CPI is announced on Wednesday, traders $S&P 500 Index (.SPX.US)$ It was pointed out that it is expected to fluctuate by at least 1.2%.
In the pre-market, most chip stocks rose, $NVIDIA (NVDA.US)$ $Arm Holdings (ARM.US)$ A rise of over 1%.
● The price of gold rose slightly, up nearly 0.5% from the previous day.
There is a high probability that major changes will occur in the market on the night the CPI is announced
If the CPI significantly exceeds or falls short of expectations, traders will review their expectations for inflation and the pace of interest rate cuts by the Federal Reserve, and as a result, there is a possibility that the market will once again be disrupted.
Brooke May, managing partner of Evans May Wealth, stated that if the Fed cuts interest rates drastically due to economic deceleration, that is not good for stock returns, even from a historical perspective. He said he doesn't think the economy is as bad as people think, that volatility is expected to increase over the next few weeks, and he won't be surprised if stock prices fall further.
Meanwhile, there are analysts who point out that even if the US inflation rate rises slightly in July, it will not shake the Fed's interest rate cut expected in September.
Data time: 2024.08.12
Data time: 2024.08.12
Will a bear market arrive in 2025?
● Quantum Strategy strategist David Roche said in an interview on 8/12 that there is a possibility that a bear market is imminent.
● He speculates that the US Federal Reserve (Fed) will not lower interest rates to the level predicted by the market, that is, 3.50%, and there is a high possibility that interest rates will remain around 4.1%. However, according to CME's FedWatch data, almost all market participants expect the Fed to cut interest rates to 4.1% or less by 2025/9.
● Also, it was pointed out that there is a possibility that corporate profits will not meet expectations due to the slowdown in the US economy, which will further worsen the possibility of a bear market. Also, he expressed the view that the artificial intelligence sector has clearly entered a bubble period and will collapse in the next six months or so, and pointed out that this is one of the causes of the slowdown in US economic growth.
● He believes that a bear market where US stocks will fall 20% will arrive in 2025 due to these factors, and there is probably a possibility that the market will turn bearish from the end of this year. Meanwhile, this prediction does not take into account the victory or loss of the US presidential election in November.
What will happen to US stocks after the VIX surge?
● According to the Bank of America survey, weekly schedule since 1997 $CBOE Volatility S&P 500 Index (.VIX.US)$ There were 11 times when it surpassed 45. These are 1997/10, 1998/9, 2001/9, 2002/7 and 8, 2008/10/12, 2010/5, 2011/8/10, 2015/8, 2018/2, 2020/2/4, and 2024/8.
US Market Outlook: Will a bear market arrive in 2025? Long-term, an opportunity to buy in reverse after a sharp rise in ViX = the Bofa Dow average started at $5...

● At Bank of America, when VIX greatly exceeds 45 for the first time, $S&P 500 Index (.SPX.US)$ It points out that there is a high possibility that things will go bad for 4 to 8 weeks after that. However, over the long term (13 weeks, 26 weeks, 39 weeks, 52 weeks), the S&P 500 has shown relatively strong performance even after the VIX surge, and returns are usually well above historical averages.
US Market Outlook: Will a bear market arrive in 2025? Long-term, an opportunity to buy in reverse after a sharp rise in ViX = the Bofa Dow average started at $5...
— MooMoo News Zeber
Source: Moomoo, Bloomberg, CME FedWatch
This article uses automatic translation for some of its parts
US Market Outlook: Will a bear market arrive in 2025? Long-term, an opportunity to buy in reverse after a sharp rise in ViX = the Bofa Dow average started at $5...
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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