On the eve of a big drop on Friday, David Einhorn, who became famous for profiting during the Lehman crisis, stated that the structure of the U.S. stock market is collapsing.

David Einhorn stated that due to the rise of passive investing and investors placing more importance on price rather than value, overvalued Stocks become even more overvalued and undervalued Stocks become even more undervalued. This phenomenon distorts market value and plants significant hidden risks.

wallstreetcn14:35

"Returning to the pre-liberation era overnight"! The U.S. stock market has erased its gains after the election, and the employment report worries Wall Street about a "double loss" in stocks and bonds.

Measured by the performance of the largest Global ETF tracking the S&P and long-term U.S. Treasury bonds, the total returns of U.S. stocks and bonds have been negative for five consecutive weeks, marking the longest streak of negative returns since September 2023. Friday's non-farm payroll report raised concerns among traders about the Federal Reserve closing the door on this round of easing.

wallstreetcn10:38

Reaction Roundup: SA Analysts, Experts Weigh in on December Jobs Report

Seeking Alpha00:33

Traders Push Back Rate-cut Expectations for 2025 After Hot December Jobs Report

Seeking AlphaJan 10 23:11

U.S. stock market early session | The three major Indexes all declined, with the Nasdaq down over 2%; Technology stocks plummeted, with AMD falling more than 5%; Blue-chip stocks surged against the trend! Pharmacy stock WBA rose over 25%.

On the evening of October 10 in Peking, US stocks opened lower on Friday. The surge in US bond yields put pressure on the stock indices, with the 30-year US bond yield rising to 5%. The non-farm payroll data for December significantly exceeded expectations, and the unemployment rate fell, leading investors to lower their expectations for a rate cut by the Federal Reserve.

Jan 10 23:06

December US Nonfarm Payrolls Rise More Than Expected, Unemployment Rate Slows

MT NewswiresJan 10 21:41