Why did it drop yesterday? The U.S. stock market almost collapsed, with the Dow Jones, Nasdaq, and S&P 500 all falling. The drop in U.S. stocks also dragged down Bitcoin. It's okay to drop; a deep correction has ended, which is our opportunity to build positions. The subsequent market trend will be better, just quietly waiting for the Ethereum upgrade.
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Analysis of the reasons for the significant drop in the Nasdaq
• Impact of market sentiment:
After the holiday, market sentiment has been affected, and investors are cautious about economic prospects and company performance, leading to insufficient market confidence. Additionally, false news regarding tax rates has impacted market sentiment; although it was later clarified, it has caused some disturbances in the U.S. dollar index and the U.S. stock market.
• Technology stocks performed poorly:
Technology stocks play an important role in the Nasdaq, and their performance directly affects the Nasdaq's trend. Recently, major technology stocks such as Tesla and Nvidia have performed poorly. Tesla has seen a significant decline due to delivery numbers falling short of expectations, and Nvidia also fell due to product releases not meeting investor expectations, dragging down the overall performance of the Nasdaq.
• Macroeconomic data and policy expectations:
Although various data show no significant issues, there is uncertainty regarding the market's expectations for the Federal Reserve's monetary policy. The Federal Reserve's continuous interest rate hikes to combat inflation have had a significant impact on market psychology. Meanwhile, although U.S. economic data maintains a certain level of growth, the overall growth rate has slowed down, particularly in the weak employment market and consumer spending, which has shaken market confidence.
Outlook for subsequent trends
• Dominated by fluctuating market conditions:
From the current situation, the overall trend peak of the U.S. stock market is still rising, but the market needs time to digest the impact of this significant drop in the short term. Before liquidity is reintroduced and market sentiment gradually recovers, the U.S. stock market is more likely to present a fluctuating trend. Investors should remain cautious, avoid blindly chasing highs and cutting losses, and pay attention to whether the market can establish effective support in the range of 96300-95300, with breaking points needing to be watched between 93000-91500.
• Focus on ETF institutional buying power:
Recently, several institutions purchasing ETFs have shown good buying power, which provides some support to the market. If these institutions continue to increase their buying strength, it will help stabilize market sentiment and gradually push the U.S. stock market to recover.
• Value recovery and range-bound fluctuations:
From the perspective of value recovery, after this adjustment, the valuations of some technology stocks have gradually returned to reasonable levels. Investors can focus on those technology stocks with good fundamentals and reasonable valuations, waiting for market sentiment to recover, as these stocks are expected to rebound. At the same time, the U.S. stock market may maintain a range-bound fluctuation pattern for some time, and investors can pay attention to the upper and lower bounds of the range to find suitable trading opportunities.
In summary, after experiencing a significant drop in the Nasdaq, the U.S. stock market may primarily exhibit fluctuating market conditions in the short term. Investors should pay attention to market sentiment, the performance of technology stocks, and macroeconomic data and policy expectations to manage risk and wait for opportunities for market stabilization and recovery.#加密市场回调 #比特币走势分析 #美股财报季来袭
Risk warning: The above content represents personal analysis and does not constitute investment advice.
