After the "crazy" growth, the U.S. technology sector will face a test next week! Crypto may usher in a new turn!
Next week is not only the light of the month in the crypto field, but it is also time for the U.S. stock market to be tested, especially the technology stocks.
In the second half of this week, the U.S. stock market continued to fall. I have been thinking about whether this decline is due to the pressure of the second quarter financial report expectations, or because of the Trump issue, which led to the expected economic improvement, thus triggering the rotation of funds from large technology stocks to small stocks. Then next week, the answer, or the fig leaf of technology stocks, will be opened.
At present, Bloomberg expects that most of the large technology stocks, that is, the seven technology giants, will have a second-quarter profit of 29%. In fact, this profit level alone is still very good. But the fear is that the previous overvaluation of technology stocks has led to higher expectations of traders, and 29% may not be recognized by the market.
According to statistics, compared with the first three quarters, the profit level basically remained at 44%-49%. If the profit of 29% is compared, it is indeed not in line with expectations. For traders, the higher stock price before is overvalued and the risk is too high. Therefore, if technology stocks continue to lead the market decline next week, it may verify my point of view.
At the same time, this may usher in a new turning point for the crypto market. In the risk market, once the huge US stocks, especially the technology stocks with concentrated funds, have a correction, the withdrawn funds will continue to look for industry-side investment opportunities. Next week, for the crypto market, frequent trend-type events may be more likely to bring profit gains, and US funds may flow into the crypto market in a short period of time.
In particular, we can see from today's data that USDC funds in the US are very likely to flow into the market in large quantities in the early hours of Friday, with an increase of nearly 372 million. I think this may just be the beginning. If US technology stocks begin to lead the decline, then there will still be good funds flowing into the market next week. Wait for the data verification next week!
