Opinion | What is causing the decline in US stocks, and how should future investment strategies be viewed?

We believe the core reason is the panic of liquidity tightening under recession expectations: on one hand, Trump's "recession" guidance coincides with the weakening of economic data; on the other hand, behind the concerns about liquidity, there is not only the discomfort from the Fed's balance sheet reduction nearing its end but also the "diversion" coming from China and Europe, along with the "shadow" of further tightening by the Bank of Japan.

Chuanyue Global Macro12:31

The drop is historically rare! Who could have predicted that the opening of the US stock market under "Trump 2.0" would be so poor two months ago?

Market pessimism spreads, the USA stock market hits its lowest level since Obama took office during the Global financial crisis in 2009, with all three major stock indexes erasing all gains since the beginning of the year.

wallstreetcn11:51

If the recession becomes a reality, the Federal Reserve may be forced to make an emergency rate cut in June.

Traders are betting that the Federal Reserve will quickly cut interest rates during an economic downturn, with an increasing number of people in the Futures market expecting continuous rate cuts in June, July, and October, while Federal Reserve officials face a dilemma of rising inflation and a weak economy.

Golden10 Data11:39

Trump's "economic suicide"? Black Monday for U.S. stocks: Wall Street trapped in a death spiral.

① As investors rush to escape almost all types of risk Assets, concerns about an economic recession have further swept across Wall Street; ② The steady decline of the USA stock market accelerated sharply on Monday, and Wall Street encountered a stormy "Black Monday" market...

cls.cn09:16

"Manufacturing recession"? Trump and Bessent have almost "given the hint"; the key next step is: which will happen first, a sharp decline in the U.S. stock market, or concessions from Congress and the Federal Reserve?

Nomura's analysis indicates that the USA is experiencing an artificially created recession, with the issue being the time lag between the 'painful' first phase and the market-favorable second phase (massive deregulation, tax cuts, and Federal Reserve interest rate cuts). To regain market confidence in the future, the Trump administration needs to find a way to shorten the timeline and bring forward the 'benefits' of the second phase.

wallstreetcn09:14

Trump and Powell, who will save the US stock market this time?

Analysts believe that we should neither expect the Trump administration to intervene nor anticipate the Federal Reserve to take action to support the market: USA Treasury Secretary Yellen explicitly denied the existence of "Trump's support" last week and stated that as the Trump administration implements spending cuts and tariff agendas, the USA economy will undergo a "withdrawal period"; on the other hand, insufficient progress in slowing inflation has limited the Federal Reserve's space for action, and although the market expects more interest rate cuts in 2025, the Federal Reserve remains in a wait-and-see position.

wallstreetcn08:42