Powell's words, US stocks plummeted ...

On Friday local time, the Federal Reserve Chairman Powell attended the annual meeting of the Global Central Bank of Jackson Hall, reiterating the eagle theory, emphasizing that the Fed will bear the cost of suffering at the expense of the economy, and it is necessary to strengthen interest rates to curb the inflation. The eagle signal released by Powell's speech is even stronger than the market expectations, which has triggered a tide of selling US stocks. The three major stock indexes in the New York stock market fell on that day. Among them, the Dow is more than 1,000 points, and the Na index fell nearly 4%. From the perspective of the disk, the 11 sectors of the S & P broadcasted "the entire army was covered". Except for public utilities and energy, all the remaining sectors fell at least more than 2%. The leading technology stocks fell across the board, and the letters of Google's parent company fell 5.4%, showing the bottom; Amazon fell nearly 4.8%, and Naifei fell nearly 4.6%.

Give the market expectation of cold water Powell: reiterating interest rate hike curbing inflation is the primary task of the Federal Reserve

In a speech on Friday, the Federal Reserve Chairman Powell, in addition to reiterating interest rates to curb inflation is the primary task of Federal Reserve, also splashed a pot of "cold water" for the Fed's expectations of the Fed's expectations to start rate cuts in the second half of next year. Powell pointed out that during this round of monetary policy tightening cycle, the Fed is committed to raising interest rates to a limited level in economic growth and maintained at this high for a while. After Powell's speech, the market expected the probability of the Fed's 75 -basis point in September, from less than 50%to 61.5%.

The year -on -year growth rate of personal consumption expenditure price index (PCE) in the United States slowed down

According to data released by the US Department of Commerce on Friday, the price index of personal consumption expenditure in the United States in July, that is, PCE increased by 6.3%year -on -year, lower than market expectations and previous values, but the year -on -year growth rate was still at a historical high in nearly 40 years. PCE decreased by 0.1%from the previous month, which was the first time since April 2020 declined. The core PCE of food and energy prices increased by 4.6%year -on -year, while lower than market expectations and previous values. However, this data does not ease the anxiety of investors. In the speech of the day, Powell clearly stated that the Fed's monetary policy position will not be loosened by the relief of the inflation data for a month or two.

The three major US stock indexes have fallen throughout the week this week

This week, with a series of economic data showing the signs of continuous slowdown in US economic growth, US stocks have once hoped that the pessimistic data can slow down the pace of the Fed's radical interest rate hike, while Fed officials continue to release the eagle signal. The United States The stock market shakes down in a long and short tap. It wasn't until Powell finished speaking on Friday that the market realized that the Fed's determination to curb inflation is more determined than external expectations. The stock market immediately set off a wave of selling. The three major stock indexes in the New York stock market also fell more than 4%this week.

On the 26th, the three major stock markets in Europe fell collectively

In Europe, after Powell's speech, the market followed the pace of the European Central Bank to follow the pace of the Fed and increased its expected heating up. Analysts predicted that the European Central Bank may raise interest rates in September 75 basis points, which will make the market overwhelmed. The big stock market fell collectively on the same day.

International oil prices have risen this week

This week, due to the aggravation of the European energy crisis and the promotion of factors such as "OPEC+" brewing, the cumulative increase in international oil prices has risen, which has flattened all the decline last week.

Source: CCTV Finance

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