11.37%! U.S. stocks have experienced epic surges in the past century.

China News Client Beijing March 25th (Xie Yiguan Cheng Chunyu) witnessed history again.

The volatile global financial market ushered in an epic skyrocketing on the 24th. The US stock market's Dow once hit a century, its biggest increase since 1933. Not only the stock market, crude oil, gold, etc. have also violently "counterattacked".

Global stock markets skyrocket, U.S. stocks hit biggest single-day gain in 1987

On March 24 local time, before the U.S. stock market, the Dow, Nasdaq, and S & P 500 index futures continued to expand in the intraday market, rising by more than 5%, triggering trading restrictions. After the resumption of trading, the three major stock indexes continued to rise.

Then the US stocks opened sharply higher. The Dow Jones index opened up 1106.90 points, or 5.95%, to 19698.83 points; the Nasdaq index opened 5.08% to 7209.52 points; the S & P 500 index opened 5.24% to 2,235.65 points.

On March 24, the Dow was trading intraday.

As of the close, the Dow rose 11.37% to 20704.91 points, a sharp rise of 2121.98 points, the largest single-day increase since 1933; the S & P 500 rose 9.38% to 24,473.33, the largest single-day increase since October 2008; the Nasdaq rose 8.12 % Reported 7417.86 points.

Affected by the unprecedented unlimited easing policy adopted by the Federal Reserve, the Asia-Pacific stock markets that had closed before the opening of the US stock market and the European stock markets that started trading have rebounded violently in advance.

As of the close of the 24th, the Nikkei 225 Index closed up 7.13%, the largest single-day increase in 4 years; the Korea Composite Index rose 8.6%, the largest increase since November 2008; the Hang Seng Index closed up 4.46% to 22663.49 points; A Stock index, Shenzhen index, ChiNext index rose more than 2%.

In terms of European stock markets, the European Stoxx 600 Index closed up 7.5%, the largest single-day gain since the 2008 financial crisis. The German DAX index rose 10.98% to 9700.57 points, the French CAC40 index rose 8.39% to 4242.7 points, and the British FTSE 100 index rose 9.05% to 5446.01 points.

Closing of major European stock indexes.

Market panic "relaxed", crude oil and gold continue to skyrocket

On the 24th, the financial market panic index VIX fell 6.69% to 61.62, and the panic index VIX has fallen more than 6% for two consecutive days. Earlier this year, the panic index VIX rose more than 500% this year, the highest reported at 85.47 points.

The international oil price was "2 Lianyang". NYMEX crude oil futures closed up 4.15% to 24.33 US dollars / barrel, closing higher for the second consecutive trading day. Brent crude futures closed up 3.35% at $ 30.27 / barrel, returning above $ 30.

On March 24, the price of gold soared by $ 101.4 a day, and COMEX gold rose by 6.47% to close at $ 1669. The gold futures of the Shanghai Stock Exchange had a daily limit, and the A-share gold concept plate also set a limit. At the same time as the price of gold soared, there was a very rare liquidity crisis in the gold market. At noon on March 24, a number of traders appeared abnormal quotes, soaring spreads, and trading interruptions.

Under the sharp relief of market panic, US Treasury yields rose collectively, 2-year US Treasury yields rose 6 basis points to 0.39%, 3-year U.S. Treasury yields rose 8.2 basis points to 0.426%, and 5-year Treasury yields The rate rose 11 basis points to 0.529%, the 10-year US bond yield rose 6.4 basis points to 0.851%, and the 30-year US bond yield rose 4.8 basis points to 1.397%.

At the same time, the pressure on the lack of liquidity in the dollar was released. On the 24th, the US dollar index fell 0.64% to 101.7867, the euro rose 0.6% to 1.079, the pound rose 1.88% to 1.1761, the dollar fell 0.01% to 111.23, and the offshore yuan rose to 346 basis points to US $ 7.0852. .

Data map.

Why is it so crazy?

Some netizens teased, "It is not only Buffett who is happy when he sees such a scene, but also President Trump must be beautiful."

Because on the previous trading day, on the 23rd, the Dow fell 3.04% and the S & P 500 index fell 2.93%, the lowest since US President Trump took office in January 2017, and Trump has previously spoken repeatedly to publicize his "Share Performance".

Why did global stock markets, especially US stocks, soar on the 24th?

The reporters sorted out the opinions of research institutions and foreign media reports, which showed that there are two main reasons. The first is the unlimited QE announced by the Federal Reserve on the 23rd, which is equivalent to explicitly telling the market how much money I will give, and you can renew the unlimited and unlimited cups. "Quantitative easing", it can be said that the strength of the Federal Reserve's monetary easing has exceeded the period of the 2008 financial crisis.

Second, the market is optimistic that the US Congress will approve a huge US $ 2 trillion fiscal stimulus bill. Earlier, the aforementioned economic stimulus bill had failed twice in the US Congress. Subsequently, US media reported that US Senator Schumer and Treasury Secretary Mnuchin had reached agreement with Democratic leaders "almost" on a $ 2 trillion economic stimulus bill.

According to foreign media reports on the 24th, as the plan ’s biggest opposition, US House Speaker Pelosi also stated that she is very optimistic that Congress will reach an economic stimulus agreement in the next few hours. She said everyone agreed that stimulus legislation should be completed.

On March 12, local time, a masked citizen walked past the New York Stock Exchange. Photo by Liao Pan of China News Agency

Now is the time to make a bottom? Have you copied the bottom?

After the violent rebound of global stock markets, many investors questioned, "Is this a rebound or a return?"

The biggest trigger for the sharp fall in the European and American markets is the rapid spread of the epidemic globally. Many analysts believe that the stock market bottomed out when the epidemic turned, but no one dared to say where the turning point was.

"This is a typical bear market trend characteristic, there is no fundamental relief in the market and a reinvention of confidence." Said David Coombs, chief investment officer of Rathbones Investment Management. Nikolaos Panigirtzoglou, managing director of JP Morgan Chase, pointed out that the day's rise "has a large degree of short covering factor" and will raise stock prices in the short term.

Credit Suisse released a research report on Tuesday that the key to the market's bottoming is the control of the epidemic. "Once the number of new confirmed cases peaks, the market will quickly gain a foothold. Relying on government aid alone will not be enough to help the market bottom."

According to data from Johns Hopkins University, as of 5:40 am on the 25th, Beijing time, the cumulative number of confirmed cases in the United States reached 53,268, with a total of 703 deaths. According to the New York Post on March 23, Tom Bossert, a former homeland security adviser to President Trump, said recently: "The United States has a huge problem with the epidemic, and the number of infected people is rising. Speed, the US outbreak will usher in a major outbreak within two weeks. "

However, according to foreign media reports, US President Trump said in an interview with Fox News TV that he is considering relaxing the control of the epidemic and hopes that the United States can be "open" by mid-April.

Merx Investments chief investment officer Axel Merk said that the news that Trump would soon restart the U.S. economy would not please investors, and they remained concerned about the uncertainty of the epidemic and the economic losses it caused.

According to Mark Hefer, global chief investment officer of UBS Wealth Management, the United States is accelerating financial measures to mitigate the impact of the epidemic, but the impact of epidemic prevention and control measures still exceeds the impact of rescue policies. Market trends will depend on how long economic activity can return to normal and how many policies can be introduced to limit corporate bankruptcy and unemployment.

"Even if the U.S. Congress has passed all necessary legislation, the market will be vulnerable for the next six months. According to Congress, some A copy of the bill's expectations may not be a prudent investment strategy. "

If you are an investor, will you make a bottom-up? If you want to buy a bottom, what do you buy? Crude oil, gold, or stock? (Finish)