In the current second quarter earnings season of the US stock market, both the Russell and the Dow will become the vane of trading interest rate cuts.
Traders' good expectations for the interest rate cut will be reflected in the Russell 2000 and the Dow,
Russell 2000 is the priority, followed by the Dow.
This is actually similar to the exchange between the proportion of altcoins and#BTCin the crypto market to identify risk preferences,
and the US stock market is also the main vane of the US risk market.
US stocks are not afraid of falling, but they are afraid that the Russell will not rise during the trading interest rate cut stage, which proves that the risk investment of US traders is biased towards sentiment.
Last night's Russell 2000 and the Dow rose well. If it were not for 3M's unexpected increase, the Dow would not be as good as the Russell.
Although technology stocks are rising during and after the market, as long as the second quarter financial reports are not released, technology stocks will only rebound in the short term, especially Nvidia, which is the last of the seven giants to release its financial report. If the financial report expectations of other technology giants do not meet expectations, then Nvidia's financial report may save market confidence, or it may become the last straw that breaks the camel's back.
Of course, I am not talking about the collapse of#USstocks, but the correction in the face of interest rate cuts. Don't get me wrong, whether the second quarter financial report is good or bad, it can affect the correction in the trading interest rate cut and the initial interest rate cut stage.
PS: It is currently known that Nvidia's second quarter financial report will be released on August 28.
