In the first half of 2019, in the constant questioning of the market, US stocks continued to hit new highs. So, is the US stock market ushered in a sell-off?
“First Financial” reported that after the strongest June rally in 80 years, US stocks continued to be strong in early July, and it hit a record high for the fifth time since the end of 2017. However, the strong June non-farm payrolls data released last Friday (5th) not only reduced the market’s sharp interest rate cuts for the US Federal Reserve, but also broke the cold water for the current high US stock market momentum. However, throughout the week, the Dow rose 1.2%, the S&P 500 rose 1.7%, and the Nasdaq rose 1.9%.
Previously, every time the US stocks hit a historical high, they almost immediately ushered in a wave of selling. Is this an exception?
According to the analysis, it will depend on the upcoming US stock quarterly earnings season and the Fed’s monetary policy outlook. Morgan Stanley stock strategist Michael Wilson said in the research report, “We believe that the US economy is experiencing a significant slowdown after overheating last year. This slowdown will be reflected in poor corporate earnings growth and economic conditions. Deterioration.” He expects that if economic data continues to weaken in the third quarter, US stocks may have a 10% correction. Even in the best case of the Fed’s further monetary easing, the US stocks’ risk is also rising, and the upside is also rising. Very limited.”