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Goldman Sachs warns that the US stock market faces a 30% correction risk in 2025. Trump's policies and inflation are key drivers!
Goldman Sachs analysts have been closely monitoring the stock market dynamics. They believe that the current market is overheated and a correction of up to 30% may occur in the future.
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Trump 2.0's first trading day: Small Cap stocks led the rise, the Nasdaq index briefly fell, and Bitcoin tested $0.107 million.
On the first trading day after Trump's return to the White House, the Dow Jones rose over 1%, the chip index surged over 2%, multiple institutions downgraded Apple which fell over 3%, losing its throne as the Global Market Cap leader to NVIDIA, Tesla turned negative, Trump's media dropped 11%, and Oracle, which will partner with SoftBank to invest in USA AI Infrastructure, rose over 7%. Netflix's Earnings Reports were Bullish, leading to a post-market increase of over 13% to a new high. The China concept index rose over 1% before turning negative, New Oriental dropped over 23%, and Xiaopeng Autos rose over 6%. European and American long-term bonds led the rise, the dollar hit a two-week low, the Canadian dollar and Mexican peso fell, offshore RMB briefly fell below 7.29 yuan, Trump coin turned positive, US oil fell as deep as 3%, and Gold rose over 1% to the highest level in more than two months.
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The "Trump Trade" is facing a validation moment: the dollar has already fallen, what about the US stock market?
Analysis suggests that the U.S. stock market may experience a pullback in the short term due to disappointment, and historically, the U.S. stock market usually shows a downward trend in the months following the presidential inauguration.
Schroeder: The resilience of the USA economy is still present, but policy risks need to be monitored. There may be investment opportunities in small and medium-sized US stocks.
Schroder Investment stated that as Trump takes office again, the USA economy and policy direction have once again become the focus.
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