The three major U.S. stock indexes closed up collectively, the Dow rose 1.61%, the Nasdaq rose 2.68%, and the S&P 500 rose 1.99%.
new energycar,semiconductorthe aviation sector was among the top gainers, and large technology stocks generally rose.Teslarose more than 7%,United Airlines、American airlines、Southwest Airlinesrose more than 6%,Nvidiarose more than 5%,appleGoogle rose more than 2%; popular Chinese stocks rose sharply,Know almostrose more than 22%,Alibaba、Baidurose more than 14%,NIO、Pinduoduo、IQIYIrose more than 9%,Bilibilirose more than 8%,Xiaopeng Motors、ideal carrose more than 7%,Didi、JD.comrose more than 5%.
When will U.S. stocks bottom?Goldman Sachs: When the Fed signals an end to monetary policy tightening
Goldman SachsThis week said the Fed issued an end tocurrencyA signal of policy tightening can stop a sell-off in U.S. stocks, and the Fed may not send that signal until a recession is already evident.
As Powell-led Fed says it will take aggressive approach to raisinginterest rateto suppressQualcommU.S. stocks have been falling for some time in the past. Investors are expecting a quick and steep rate hike to drag the U.S. economy into recession.
becauseQualcommswell,interest rateRising and recession risks have rattled investors, with the S&P 500 teetering on the brink of a bear market, having lost about 18% this year for seven straight weeks; meanwhile, tech-heavy stocksNasdaqThe composite index has fallen into a bear market, falling more than 28% this year, while the Dow Jones Industrial Average has fallen for nine weeks in a row, falling more than 12% this year.
“Using history as a guide, only a turn by the Fed itself will most likely end this monetary-policy-tightening decline and lift stocks off their recent lows,” he said.Goldman SachsStrategist Vickie Chang wrote in a note to clients.
“It may be that markets need further conviction that the tightening in financial conditions has been sufficient and that the Fed has done its job and signaled enough to tighten,” Chang wrote. “Monetary policy has historically stopped tightening about three months before the bottom of the stock market and turned to easing about two months after that.”
The Fed is expected to raise its benchmark interest rate by another 50 basis points at its next meeting on June 14-15. The Federal Open Market Committee has raised interest rates by 75 basis points since March, bringing the benchmark rate to a range of 0.75% to 1%.
“The market may need to see signs of deceleration in inflation, which our U.S. experts don’t expect until the second half of the year, for the market to continue to moderate,” Chang said.
She said,Goldman SachsIt believes that financial conditions have tightened so far this year “roughly as much” as the Fed needs to achieve its policy goals. The Fed’s goal is to average 2% inflation.
U.S. consumer price index for April ( CPI ) rose 8.3% year-on-year, higher than the industry forecast of 8.1%, and only slightly down from 8.5% in March, but still close to the highest level since the summer of 1982.At the same time, the U.S. in the first quarter ofgross domestic productAn unexpected contraction of 1.4%.
However, Chang also said that investors are unlikely to get a clear signal from monetary policymakers about a policy shift until there are stronger signs that growth is slowing and inflation pressures are cooling.
(Article source: Financial Associated Press)