Decline in USA high-tech stocks

Stock index on July 11, 2024, containing many high-tech stocksNASDAQOverallcompared to the previous daydecreased by 1.92% and was heavily sold.

Stock price index composed of small-cap stocks, in contrast,Russell 2000compared to the previous dayincreased by 3.57%and surged.

The USA has ordered the dispatch of dozens of troops to Cyprus in preparation for scenarios such as evacuating Americans from Lebanon. The State Department announced on Tuesday that they are increasing flights from Lebanon and working with airlines to add more seats for American passengers.CPIfellLong-term interest ratesalso declined, soStocks are rising.for those who were expecting to becomeNASDAQThe decline has become bad news.

Technology stocks that have led the market as well asAI-related stocksare being bought in anticipation of growth several years ahead, purchased in anticipation.

Stocks are like that, not abnormal, but technology stocks tend to be overbought, and it is necessary to be aware that they fluctuate in adjustment phases.

WhyCPIDespite the decrease.NASDAQDid it fall?

It is easy to say that the reason is that it was overbought.CPIBy decreasing, prices drop, and the economy is revitalized.unemployment rateIt is important that it becomes difficult for prices to rise.

ContradictionI think you will notice that.

As prices fall and inflation stabilizes,lowering interest rates approaches,

Inflation stabilization will be positive for the economy and will activate the labor market.

Especially this timeCPIThe same as the announcement in July 2023, a year ago.3.0%recorded.

This is likely to fall below 3.0%and enter the 2% range.This indicates a high possibility of entering the 2% range.

The 2% rangeis tricky.Even if you try to push it down, it will quickly rebound. It takes a long time to induce the inflation rate to the 1% range by breaking below 2%.

To break below the 3% rangeAfter one year has passedAt the current point after one year has passed, the demand for the US economy can be considered quite strong.

Even if inflation stabilization progresses, it does not necessarily mean that gold will not rise.unemployment rateEven if inflation stabilization progresses, it does not necessarily mean that silver will not rise.

Federal Reserve BankIf there are dark clouds over the labor market, due to having materials to calm down inflation, immediatelylowering interest rates there are also advantages in taking action

Nevertheless, the marketCPIthe decline inunemployment ratemakes it difficult for gold to riselowering interest rates I have determined to stay away.

In a market where uncertainty is increasing in the future,Gold and silverCommodity-related stocks, including gold and silver, begin to shine as they should.

This rise will be limited.AI-related stockswill become bearish due to the delay in interest rate cuts, causing them to move at historically low levels.Gold and silver.is starting to be bought.

Once,AI-related stocksif they recover,gold and silverwill lose strength and fall.

Regarding this,unemployment rateIt can be said eventually.

We have been experiencing bitterness due to the rise in long-term interest rates.Residential stocksSpotlight is beginning to shine on it.

Considering the signs of a decline in both interest rates and residence prices,Residential stocksI think there is a high possibility of it being bought.

Summer market slumpIt is expected that when the summer market slump begins, the overall stock price will decline, so it is important not to let your guard down.