The main reason for the decline in the US stock market today is weak economic data and a sharp sell-off of chip stocks, which has caused market concerns. The contraction of manufacturing, the increase in unemployment claims, and the decrease in construction spending have intensified concerns about economic slowdown. Although the Federal Reserve may cut interest rates in September, investors still feel uncertain about the future economic outlook.
Yesterday's rise and Powell's affirmation of the upcoming rate cut have made investors relatively optimistic about the market. Many people have used up their positions to bottom fish. Today's decline is undoubtedly desperate for some investors, as the market volatility easily dominates investor sentiment.
However, establishing the correct trading system and trading approach will enable us to calmly face market fluctuations. In fact, as mentioned in the weekend video, we mentioned that the large cap may continue to decline this week, ...