The Federal Reserve is expected to keep interest rates at 525% to 5The range is 5%, which is the same as since July last year. Fed Chair Jerome Powell said a rate cut is unlikely in March. Against this backdrop, markets are focused on how open the Fed is to future rate cuts and whether it has discussed tapering its quantitative tightening program. In addition, technology stocks were broad**, with Google recording its biggest one-day drop since the end of October last year. Among the big tech stocks, Google, Amazon, Tesla, Microsoft and Meta all fell more than 2%. The popular Chinese concept stocks were mixed, Xiaopeng Motors fell more than 3%, and JD.com, iQiyi, etc. were small.
In my opinion, the upcoming Fed meeting will undoubtedly have a profound impact on the market. Although the meeting may be "peaceful" for analysts, I think there are many signals that are worth paying attention to and interpreting.
First, Fed Chair Jerome Powell's comments suggest that a rate cut in the near term seems unlikely. This may mean that the Fed is relatively firm in its grip on inflationary pressures, and it is more inclined to keep interest rates steady and watch the economic data. However, it may also reflect their concerns about the future economic outlook, as persistently high inflation could cause potential damage to the economy.
Second, there is a lot of interest in whether the Fed will consider tapering its quantitative tightening program in the future. In my opinion, this is a very worthwhile topic. If the Fed chooses to taper QC at the right time, the market is likely to react positively, as it could mean that the economy is on the verge of a more accommodative monetary policy environment. However, if the Fed chooses to maintain the current scale of quantitative tightening, then the market may react coldly to this, as this could mean that the economy is still under some pressure.
In addition, the trend of the science and technology field is also an aspect of the conference that has attracted much attention. Ahead of the meeting, tech stocks in general**, and Google in particular, posted their biggest one-day drop since late October. This may reflect a waning confidence in technology stocks, which may also be related to the Fed's approach to controlling inflation. In this context, I believe that the future trend of the technology market will depend on the combined impact of a variety of factors, including but not limited to economic data, policy environment, and industry trends.
Finally, I don't think we can ignore the global tech stock movement. With the acceleration of globalization, the trend of the science and technology field is no longer limited to a certain country or region. As a result, the impact of the Fed meeting could ripple through the tech scene around the world. Overall, the Fed meeting is approaching, and the market's expectations and attention for the future are very high. As investors, we need to pay close attention to all kinds of information, including economic data, policy developments, and industry trends, so that we can make informed investment decisions. At the same time, we also need to remain rational and cautious, and avoid blindly following the herd or over-speculating.
The Fed's decision-making and the market's reaction are always touching, if you have any views on the Fed meeting or the technology field, please leave a message in the comment area to share!