The performance of the market in the past two days has really returned to the pre-liberation era overnight.
Since Trump won the election, the performance of US stocks and cryptocurrencies has been good, but Powell's remarks yesterday caused the market to plummet instantly.
In the early morning of the 19th, US time, the FOMC interest rate decision announced a rate cut, which was originally a good thing, but Powell's remarks after the rate cut brought a shock to the market.
This time, the latest dot plot was also updated, which can help predict the Fed's future quarterly and annual rate cut plans. The latest dot plot shows that the expected number of rate cuts in 2025 has been reduced from 4 to 2, which is undoubtedly a heavy blow to the market.
Rate cuts usually mean the release of liquidity, and the financial industry will benefit first, and it will also promote some consumer industries.
Originally, everyone was still immersed in the joy of rate cuts and the Nasdaq breaking through 21,000 points, but they were poured with a basin of cold water by Powell. The Dow Jones Index has even fallen ten consecutive times.
So what is the connection between the decline of the Dow Jones Index and Trump?
First of all, the plunge the night before was undoubtedly caused by Powell's hawkish remarks. But in fact, the Dow Jones has been falling for many consecutive days.
An important reason for the decline of the Dow Jones is Trump's opposing party, the Democratic Party. Most of the supporters of the Democratic Party come from heavy industries such as oil. Most of these old money industries are in the Dow Jones, so the Dow Jones has a relatively small bubble.
But after Trump took office this year, stocks that were contrary to his policies were affected, and funds turned to Nasdaq, S&P 500 and Bitcoin. Nasdaq and S&P 500 are mostly technology stocks, and the bubble is relatively large, and Bitcoin is also part of it.
Since November 6, Trump's policies have driven the rise of Nasdaq, S&P 500 and Bitcoin. Trump advocates tax cuts, stimulates the economy, and advocates quantitative easing, which makes everyone very excited.
So it can be said that Lao Bao taught everyone a lesson yesterday. The epic plunge, just looking at the index, fell by three points, which is rare in history.
But the good news is that Powell's term of office is still 2 years, and Trump has 4 years. He will move into the White House on January 20.
The first 100 days of the new president's inauguration is the high-frequency period of his policy. There are rumors in the market that Trump may appoint a new Treasury Secretary to check and balance Powell (By the way, Powell was personally selected by Trump when he took office👀 #美联储放鹰