The U.S. stock market continued its volatile trend over the past week. As inflation expectations rise and the Federal Reserve signals an adjustment to loose monetary policy, investors worry that the U.S. economic recovery may be hindered. As a result, the three major stock indexes fell continuously in the first three trading days last week. However, initial jobless claims data released last Thursday fell to a new low since the epidemic, boosting market sentiment.
Ultimately, the major stock indexes were mixed on Wednesday. The Dow Jones Industrial Average fell 0.51% this week to 34207.84 points; the Nasdaq Composite Index rose 0.31% this week to 13470.99 points; the S&P 500 Index fell 0.43% this week to 4155.86 points. The Dow Jones and S&P 500 fell for two weeks in a row.
China and the United States both announced tightening regulations on cryptocurrency
Last week, Bitcoin's violent fluctuations attracted attention due to a series of regulatory policy news. On May 21, the meeting of the Financial Stability and Development Committee of the State Council (hereinafter referred to as the "Financial Committee") clearly proposed to strengthen the supervision of the financial activities of platform companies, severely crack down on Bitcoin mining and trading activities, and resolutely crack down on Bitcoin mining and trading activities. Prevent individual risks from being transmitted to society.
Notably, this is the first time the Financial Commission has proposed a crackdown on Bitcoin mining and trading.
At the same time, the U.S. government is also increasing its regulation of cryptocurrencies. On May 21, the U.S. Treasury Department stated that the regulation of cryptocurrencies has become an important issue and it has facilitated many illegal activities, including tax evasion, which is why the president will provide additional resources to the IRS to address crypto assets The problem is growing.
The U.S. Treasury Department said it will require individual cryptocurrency transactions worth more than $10,000 to be reported to the Internal Revenue Service. This is seen as an important part of the Biden administration's proposals to strengthen tax compliance.
The virtual currency market collapsed last week as regulations tightened across the board. After the China Financial Commission proposed a crackdown on Bitcoin mining and trading, the price of Bitcoin plummeted, falling by more than US$3,000 in 10 minutes, once exceeding US$34,000, and shrinking by more than 47% from last month's historical high of US$64,900. As of 22:15 on the 23rd, Bitcoin fell to $33,502.61.
Peter, chief investment officer of the group, commented: "The trend of Bitcoin has affected the performance of US stocks. Bitcoin is a typical representative of risk appetite. This means that if it is dragged down by Bitcoin, US stocks will be more volatile."
The United States will release a number of economic data and inflation indicators worthy of attention
This week, the United States will release a series of key economic data. Data on consumer confidence, home prices and new home sales will be released on Tuesday, while data on durable goods orders will be released on Thursday. The most important data will be Friday's core personal consumption expenditures price index for April, which will include the Fed's favored inflation measure, the personal consumption expenditures deflator.
Previously, the U.S. CPI and PPI in April were significantly higher than expected, which was unexpected. The number of Americans filing for unemployment benefits for the first time last week was also lower than expected and the previous value.
Data released by the U.S. Department of Labor on May 20, local time, showed that the number of people applying for unemployment benefits for the first time in the United States fell to 444,000 in the week ending May 15, setting a new high for the sixth consecutive year. For a week in a row, it hit the lowest level since the COVID-19 outbreak in the United States.
This series of data shows that the U.S. economy is recovering rapidly. Ming Ming, deputy director of the CITIC Securities Research Institute, told reporters, "In the short term, U.S. economic data CPI and PPI show that the U.S. economy has actually shown signs of overheating. As this series of policies progress, the U.S. economy, especially in the consumer sector, may and services are likely to see a more significant rebound."
Faced with rising inflation expectations, the Federal Reserve issued a hawkish signal for the first time since the outbreak. On May 19, Eastern Time, the Federal Reserve released the minutes of its April monetary policy meeting. The minutes showed that some officials believed that if U.S. economic activity rebounded strongly, it would be necessary to discuss tightening monetary policy. This is the first time the Federal Reserve has discussed adjusting monetary policy since adopting ultra-loose monetary policy in March last year.
In addition, the Fed expects U.S. real GDP to grow significantly this year and the unemployment rate to fall accordingly.
Steve, chief economist of Moody's Analytics Asia Pacific, said in an interview with a reporter from the 21st Century Business Herald that the FOMC's attitude may have changed slightly, but the policy direction has not yet changed.
Managing partner Barry Knapp expects the Fed may discuss tapering its bond purchases at its Jackson Hole meeting in late summer, which could trigger a market correction.
Knapp said it's natural for investors to focus on the Fed now. "This is an uncertainty shock to the market that could lead to a pullback. The Fed has never really changed policy since the outbreak."
Several Federal Reserve officials will speak this week, and investors will be looking for further clues on the Fed's tightening of monetary policy.
This week’s U.S. stock economic calendar
On May 24 (Monday), the President of the Atlanta Fed and the President of the Kansas Fed will deliver speeches
On May 25 (Tuesday), the United States announced the Conference Board Consumer Expectations Index in May, the S&P/CS 20-city house price index in March, the FHFA house price index in March, total new home sales in April, and the Richmond Fed’s May house price index. manufacturing.Economic data such as indices; Germany released the final annual GDP value for the first quarter without seasonality adjustment; Federal Reserve Committee members testified before the Senate Banking Committee
The Federal Reserve Board of Governors delivered a speech on Wednesday, May 26
On May 27 (Thursday), the United States announced the number of people filing for unemployment benefits for the first time last week, the revised annualized quarterly rate of real GDP in the first quarter of the United States, the United States’ April durable goods orders, and the United States existing home contract sales index in April.
On May 28 (Friday), the United States released economic data such as April core PCE price index, May University of Michigan consumer confidence index, and May Chicago PMI; France announced the final value of first-quarter GDP; the Eurozone released May industrial data data.Prosperity Index, Economic Prosperity Index, Consumer Confidence Index Final Value
Program Planner: Li Yanxia
Reporter: Shi Shi
标签： #Indexes #Currencies #Bits #Publish #Crypto
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