The three major U.S. stock indexes collectively closed higher, and Fed Chairman Powell's speech did not hinder *** Behind this, there is a hidden question that cannot be ignored: Will inflationary pressures affect the continued growth of the U.S. economy?Powell reiterated that he will continue to "pour cold water" on the market's interest rate cut expectations, hinting at being vigilant about inflation. According to a report released by the U.S. Department of Commerce, the Fed's preferred inflation measure, personal consumption expenditures** (CPI), was 3% from a year earlier, but the core base index, which excludes volatile food and energy**, was 35%。This means that inflation remains high, and Powell said that the Fed's strong action has brought the policy rate into restrictive territory, which means that tight monetary policy is putting downward pressure on economic activity and inflation.
As a result, he said, the impact of monetary policy on economic conditions is lagged and the full effect of tightening policy may not yet be felt. If the timing is right, the Fed is ready to tighten monetary policy further, a statement that has sparked alarm in the market. At the same time, the failure of experimental drug research, the share price of the world's pharmaceutical giant Pfizer fell by nearly 40%, and the downturn in the PC market also caused the giant Dell to fall by nearly 10% after its financial report, which indicates that market uncertainty has increased and investor sentiment has been affected to a certain extent. Against this backdrop, how do investors view the current investment environment?First, how will the Fed's monetary policy affect market movements?Second, does the decline in the performance of the two giants Pfizer and Dell signal a trend in the entire industry?Faced with these issues, investors need to be more prudent in their investment decisions.
At the same time, it is also necessary to pay attention to more macroeconomic data and industry dynamics in order to better grasp market trends. After all, investment is risky, the market is volatile, and rational investment is the key to long-term profits. Despite some uncertainties in the market, there are also some positive signs. The PC market, while sluggish, is already starting to see signs of recovery in the industry. Research firm IDC said in an October report that the PC market has "come out of the trough" despite the global economic downturn. This means that there are still opportunities for growth in some areas, and it is possible for investors to achieve better returns if they can find the right direction and seize the opportunities.
In short, in the current complex and volatile market environment, investors need to be vigilant at all times, pay attention to market dynamics, and invest rationally in order to grow steadily in market fluctuations.