Recently, the global capital market has been falling, and the Nasdaq index of the US stock market continued to hit a new low since the fall yesterday.
The three major U.S. stock indexes, the Dow Jones, Nasdaq and S&P, will fall by 30% or more from their highs, and now Nasdaq is fast. And Goldman Sachs recently released a report that the S&P index fell by 28%!
This round of stock market slump, the macro reasons, of course, is the Fed's interest rate hike. After experiencing the most violent water release cycle in history, the Federal Reserve has also ushered in the most violent interest rate hike cycle in history. It feels like it is witnessing history every year. At present, the market expects that interest rates will continue to be raised at every Fed meeting this year.
The rate hikes have severely pushed up U.S. Treasury yields, the anchor for global interest rates. At present, the yield of the 10-year US Treasury bond has exceeded 3%, and the yield of long-term and short-term Treasury bonds has also inverted. From experience, this is not only bad for the financial market, but also often a precursor to a recession in the real economy.
In addition, the bubble of the US stock market itself is also one of the internal reasons. If the US stock market adopts the valuation system of Nobel Prize winner Robert Shiller, it is currently the second largest in history. At its high point, it was extremely close to the peak of the 2000 Internet bubble.
From an industrial point of view, this round of decline is something that has never been encountered since the financial crisis in 2008, and that is the failure of technology giants. The five FAANG giants, which were once all-powerful, changed their name to META on Facebook, and gambled heavily on Yuan Universe, their profits almost halved, and the stock price fell by 48%. Amazon's e-commerce business posted a loss, falling 42%. The results of Google and Netflix also fell short of expectations by 25% and 75%, respectively.
At present, almost only Apple is still the only one. In the past, technology was the biggest driving force for the rise of US stocks. The top five technology companies alone contributed more than 30% of the index's rise. Now, the performance has peaked, and some large technology companies have even been cut in half, which can be called a double kill for Davis.
Even so, the ceiling is about to appear, and Apple's revenue growth in the first quarter has dropped to single digits, only 9%. This growth rate is difficult to support a price-earnings ratio of 30 times in A shares, let alone in US stocks. The crash of tech stocks
Best wishes to everyone!
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