China News Client, Beijing, June 11 (Xie Yiguan) On June 10, local time in the United States, the US stock market has a lot of views: the three major stock indexes have diverged, and the Nasdaq index has broken through 10,000 points, creating a new record. A new high in history; Chinese stocks rarely see surges and melting tides...
Under the influence of the epidemic, why did the Nasdaq index hit a record high, and the Chinese stock market has skyrocketed?
Nasdaq index daily chart.
The Nasdaq rushed to tens of thousands of points, the Chinese stock market staged a melting tide
On the 10th, the Fed announced the latest interest rate resolution, keeping the benchmark interest rate in the 0%-0.25% range. The 17 members of the Federal Reserve Open Market Committee (FOMC) agreed that by 2022, they would maintain a zero interest rate position.
After the Fed announced that interest rates remain unchanged, the three major US stock indexes dived late, but the trend continued to diverge. The S&P 500 index closed down 0.53% at 3,910.14 points; the Dow Jones index closed down 1.04% at 2,6989.99 points; the Nasdaq closed up 0.67% to 10020.35 points, closing the 10,000-point mark for the first time, setting a new historical record.
On the disk, energy stocks and financial stocks fell across the board, and large technology stocks rose collectively. Among them, the stock prices of Microsoft, Apple and Amazon all hit record highs; Tesla closed up nearly 9%, the stock price exceeded 1,000 US dollars for the first time, and the total market value reached 190.1 billion US dollars, once surpassing Toyota to become the world's largest car company by market value.
The Chinese stock market is also staged a crazy tide. The trading volume of stocks in a number of small finances has skyrocketed, frequently triggering a fuse As of the close on the 10th, Jiayin Jinke surged 96.61%, and it once surged more than 900%; Wensheng Financial surged 169.01%; the financial sector surged 51.52%; the magic line rose 35.83%. In addition, Fang Duoduo, which soared nearly 400% in the previous trading day, fell 66.38% on the 10th; Meimei Securities fell 56.87%.
U.S. stocks rebound, why can the Nasdaq break 10,000 points?
"So far, the rise in the stock market has been driven by the hope of economic recovery, because most states in the United States have eased home orders and blockade measures, which has boosted economic recovery expectations and thus boosted the stock market." Neuberger Berman Group President Joseph Amato said.
On June 8, the United States canceled travel restrictions in 39 countries and 39 states. The states that have not yet complied with the removal of travel restrictions include California, Florida, and North Carolina. In addition, the data released by the US Department of Labor on June 5 showed that the number of non-agricultural employment in the United States increased by 2.509 million in May, which was significantly better than the previous negative expectations of the market, and the previous value decreased by 20.537 million.
On June 10th, local time, Miami Beach, Florida closed for the first time nearly three months after it was closed. Staff were present to remind visitors to enjoy the sunny beaches while maintaining a social distance.
Jasper Lawler, head of research at the London Capital Group, said that the better-than-expected non-agricultural employment report in the United States caused economists to start talking about a "V-shaped" recovery, and the capital market has been walking in a "V-shaped" reversal.
Since the rebound of US stocks, the Nasdaq has performed the most brilliantly among the three major stock indexes. From the first recovery of the previous decline to the current record high, why is the Nasdaq so strong?
Li Xunlei, chief economist of Zhongtai Securities, analyzed that the Nasdaq index reached a new high, which was related to the emerging industry being less affected by the epidemic. Stocks with large share price increases are mainly concentrated in the fields of information technology, technology and medical health. However, energy, aviation, hotels, and tourism accounted for nearly 16% of the S&P 500 constituents, and the overall overseas revenue of the S&P 500 constituents accounted for up to 40%. Obviously, it was greatly affected by the epidemic and the trend was not as good Nasdaq index.
Why did China's stocks soar suddenly and there is a melting tide?
Krane Funds' chief investment officer Brendan Ahern said the soaring trend of some Chinese stocks on the 10th was "unreasonable." It is unclear what triggered the change in their stock prices.
According to media reports, some market participants believe that the main reasons are divided into three aspects: First, the recovery of US stocks soared, the Nasdaq index has repeatedly hit new highs, and investment enthusiasm has soared. The second is that most of the Chinese stocks have little circulation. Once the funds enter the market, the stock price is likely to rise quickly. For example, Fang Duoduo has a market value of 1.26 billion US dollars and Jiayin Jinke has a market value of 313 million US dollars. Third, there is a trend of Chinese stocks going back to Hong Kong and there is an expectation that the valuation will increase, so there is short-term speculation.
As of press time, NetEase's H-share listing chart on the first day.
Recently, JD.com and NetEase announced the "second listing" of Hong Kong stocks, which has been enthusiastically pursued by investors, and there have been oversubscriptions that are more than tens of times new. On June 11th, Beijing time, NetEase Hong Kong stocks opened 8.13% higher on the first day of listing, reported at HK$133, and the issue price was HK$123. The NetEase Hong Kong-listed fundraising scale was HK$21.092 billion.
Is the rebound of US stocks peaking?
Although the Nasdaq continues to rise, the S&P 500 and Dow Jones indexes have fallen for two consecutive days. In this regard, Jim Paulsen, chief investment strategist of the US investment research firm The Leuthold Group, believes that after strong gains in recent weeks, US stocks should have retreated or at least stalled. The current upward momentum has become extreme, and the sentiment indicators are too optimistic. The two-day decline is basically caused by profit-taking.
Yuekai Securities pointed out that while paying attention to the prosperity of US stocks, it should not ignore possible risks. The continued rise in stock prices requires fundamental support. The US economy is currently in the early stages of recovery, and the efficiency and effectiveness of its resumption of production need to be further verified; if subsequent economic fundamentals improve, the current easing policy may be moderately tightened. How to step on the balance between policy and economic "seesaw" is also a problem worthy of attention.
New York Stock Exchange on March 12 local time. China News Agency reporter Liao Panshe
On the 10th, Fed Chairman Powell made it clear at the press conference that the U.S. job market continues to slump. The unemployment rate in May may be worse than the statistical data. There is great uncertainty about the degree of economic recession and the speed of recovery, which depends on the epidemic. How the situation has changed. In the future, the Fed and the US Treasury will continue to implement easing policy tools before determining that the US economy is recovering.
"Currently, US stocks are at a high level, the space above is limited, and the development direction of the current foreign epidemic is not yet clear. US stocks do not rule out the possibility of killing valuations again." Yuekai Securities believes. (Finish)