On May 5, local time, the day after the Federal Reserve raised interest rates by 50 basis points, U.S. stocks opened lower and moved lower, and the three major stock indexes suffered heavy losses. As of the close of the day, the Dow fell 3.12%, It fell more than 1,000 points to 32,997.97 points; the Nasdaq fell 4.99% to 12,317.69 points, erasing the gains since May and was the lowest closing point since November 2020; the S&P 500 fell 3.56% to 4,146.87 points.

It is worth noting that both the Dow and the Nasdaq recorded their biggest one-day declines since 2020. The lowest level since November. In the previous trading day, the three major stock indexes rebounded sharply, the Dow rose 2.81%, the Nasdaq jumped 3.19%, and the S&P 500 rose 2.99%.

The market value of the five major technology giants in the US stock market has evaporated by 450 billion US dollars

On the disk, US stock technology stocks generally fell, Tesla fell 8.33%, Amazon, Nvidia fell by more than 7%, Meta fell by 6.77%, Apple fell by 5.57%, and Google fell by more than 4%. The five tech giants lost more than $450 billion in market value. Among them, Apple’s market value has shrunk by nearly 150 billion US dollars (about 1 trillion yuan), Amazon and Microsoft’s market value has fallen by more than 90 billion US dollars, Google’s market value has evaporated by more than 75 billion US dollars, and Facebook’s market value has also fallen by more than 40 billion US dollars.

The anti-epidemic concept stocks in US stocks fell across the board, Moderna fell 8.4%, BioNTech fell 6.53%, Novavax fell 6.49%, AstraZeneca fell 2.70%, Pfizer fell 2.17%.

Among the constituent stocks of the Nasdaq 100, only two constituent stocks closed up, Cognizant Technology fell 12.75%, EBay fell more than 11.7%, and Pinduoduo fell More than 11.1%, Mercadolibre fell more than 10.7%, Airbnb (Airbnb), Tesla fell more than 8.3%.

Popular Chinese concept stocks also fell collectively. Dingdong Maicai fell 21.62%, Weilai fell 15.17%, Xiaopeng Motors fell 13.51%, and iQiyi fell 13.33% %, Pinduoduo fell 11.18%, Bilibili fell 10.68%, Li Auto fell 8.14%, Alibaba fell 6.65%, Jingdong, NetEase, and Baidu fell nearly 6%.

In the bond market, the yield on the benchmark 10-year U.S. Treasury bond surged 10.22 basis points to 3.0365%, the highest level since 2018; the yield on two-year U.S. Treasury bonds The rate rose 6.13 basis points to 2.7034%; the U.S. 10-year Treasury Inflation-Protected Treasury (TIPS) breakeven inflation rate fell 1.90 basis points to 2.8573%.

In the news, on May 4, local time, the US Federal Open Market Committee (FOMC) meeting decided to raise the federal funds rate range to 0.75%-1.00%, which is The first major rate hike since 2000 by 50 basis points. At the same time, the Federal Reserve also announced that it will begin to shrink its balance sheet at a pace of $47.5 billion per month on June 1, and the pace of shrinking the balance sheet will accelerate to $95 billion per month in three months. That includes $60 billion in Treasuries and $35 billion in agency bonds and agency mortgage-backed securities.

In terms of data, according to the data released by the US Department of Labor on May 5, local time, the number of people applying for unemployment benefits for the first time in the United States has risen sharply in the past week. In the week ended April 30, 200,000 Americans filed for unemployment benefits for the first time, up 19,000 from 181,000 the previous week. So adjusted, the 4-week moving average of initial jobless claims was 188,000, an increase of 8,000 from the previous week’s revised average.

Not only the Federal Reserve, but many central banks around the world have also taken corresponding measures in monetary policy and in response to high inflation. The Bank of England, the central bank of England, announced on May 5 that it would raise the benchmark interest rate from 0.75% to 1% to deal with inflation; the Bank of New Zealand and the Bank of Canada each raised interest rates by 50 basis points; the Bank of India temporarily increased interest rates from May 2 to 4. Opened a monetary policy meeting and unexpectedly announced that it would raise interest rates by 40 basis points to 4.4% to deal with domestic and foreign inflation risks; on May 3, the RBA raised interest rates for the first time since 2010.

In terms of European stocks, the three major stock indexes were mixed. Britain’s FTSE 100 rose 0.13% to 7,503.27 points; France’s CAC40 fell 0.43% to 6,368.40 points; Germany’s DAX fell 0.49% to 13,902.52 points.

In terms of international oil prices, the price of New York light crude oil futures for delivery in June rose by 0.45 US dollars, or 0.42% to close at $108.26 a barrel; Brent crude oil futures for July ended up $0.76, or 0.69%, at $110.90 a barrel.

In terms of international gold prices, the most active June gold futures price in the New York Mercantile Exchange gold futures market rose $6.9 from the previous trading day to close at an ounce on the 5th. $1,875.7, an increase of 0.37%.

In addition, the dollar index rose 1.14% to 103.7540 as of late New York trading.

Investors worry about the impact of Fed rate hikes on the broader economy

The Wall Street Journal notes that given U.S. inflation is at its highest level since the early 1980s The market had expected the Fed to raise interest rates more aggressively, and the prospect of slower rate hikes set off a wave of frenzied buying in the second half of Wednesday afternoon. But Thursday’s decline dashed those optimism. Thursday’s rout was another example of market volatility this year, underscoring jitters over the potential impact of the Federal Reserve’s move to raise interest rates. The

report also said that many investors are now questioning how high the Fed is likely to raise interest rates over the next two years amid soaring inflation, and how that might affect Overall economy and corporate profits.

Bloomberg quoted David Wright, co-founder of asset management firm Sierra Investment Management, as saying: I am in the biggest bear market of my life, and I believe that the current (bear market) It has only just started, and there is still a big wave behind.

The Huatai Securities Research Report pointed out that from March to May, with interest rate hike expectations continuing to rise, U.S. stocks and bonds are both bears, and the focus in the future is when the market will be able to Ushering in a respite period, the key is when the expectation of interest rate hikes can be reversed. At present, short-term interest rate hike expectations may remain high, and the reversal of interest rate hike expectations may require confirmation of inflection points in inflation, core inflation, wages and long-term inflation expectations.

“The current focus of the Fed’s policy is still to fight inflation, and high inflation is an important reason for the Fed’s tightening.” Huaxin Securities pointed out that although the Fed’s most hawkish moment has passed , but it is still in the early stage of sharp interest rate hikes and balance sheet reduction, and there is still the possibility of sharp interest rate hikes by 50BP in June and July.Inflationary pressure, the impact of the Fed’s tightening impact is still there, the US bond interest rate continues to fluctuate at a high level, and the suppression of high valuation growth still needs attention.

ICBC International also warned that against the backdrop of the imbalance between supply and demand in the US labor market, the restructuring of employment and work patterns, and the high volatility of inflation caused by global energy and food prices, if China The long-term high inflation level cannot smoothly fall back to the expected target range, and the market should be highly alert to the liquidity impact of the Federal Reserve’s interest rate hike and active balance sheet reduction (active sales of government bonds) on the financial market.