Market analysis for March 22nd

Today is March 22nd. As more Western central banks signal easing policies, the market's expectation that the Federal Reserve will cut interest rates in June was raised to 70%. The US stock market rose for four consecutive days, with major stock indexes reaching record highs. Among them, the S&P 500, the Dow Jones Industrial Average, the Nasdaq Composite Index, and the Nasdaq 100 Index all reached record highs, with the industrial and financial sectors leading the way. European stock markets also hit new highs. Despite a slight decline in chip stocks in the afternoon, the overall performance was strong, and Nvidia is approaching an all-time high. Micron Technology rose sharply because its earnings report exceeded expectations, and FedEx also recorded a sharp rise after the earnings report. However, Apple dropped sharply due to anti-monopoly lawsuits by the US government, and gains rose significantly on the first day of Reddit listing.

The SNB unexpectedly cut interest rates by 25 basis points, becoming the first developed country to cut interest rates. This move increased market expectations about the possibility that the Federal Reserve and the European Central Bank would cut interest rates during the year. Meanwhile, anti-monopoly actions in the US and Europe targeted tech giants such as Apple, causing Apple's stock price to plummet, and the market value evaporated by 110 billion US dollars a day.

The US manufacturing PMI reached a nearly two-year high in March, while the performance of the service sector was sluggish, and inflationary pressure increased significantly. Existing home sales hit a one-year high in February, and the median housing price also hit a record high for the same period, showing the activity of the US real estate market. Eurozone PMI business activity improved in March, mainly driven by the service sector, but the contraction of the German manufacturing industry raised concerns in the market.

In the currency and commodities markets, the Bank of England's dovish policy caused European bond yields and the British pound to fall. Oil prices fell for two consecutive days, while gold once reached a new high. US bond yields experienced a fall and then an increase, and the dollar returned to a two-week high.

In the Chinese market, as US stocks rose, Chinese securities generally fell, with Pinduoduo and Ideal Auto falling sharply. The A-share market fluctuated and adjusted throughout the day. The three major indices fell slightly, but low-altitude economy concept stocks continued to explode, and domestic housing stocks in Hong Kong stocks also picked up. This series of developments reflects complex fluctuations in global financial markets under the influence of factors such as easing policy expectations, antitrust actions, and the release of economic data.

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