Local time on March 24, US stocks tumbled concept stocks, , , and many other popular only takes stock plummeted. On the news, the SEC (United States Securities and Exchange Commission) announced on the same day that the SEC had passed the final amendment to the “Foreign Company Accountability Act” and sought public comments. On the same day, Fed Chairman Powell continued to play down the impact of rising U.S. bond yields at a congressional hearing, but the market did not buy it. The three major U.S. stock indexes plunged in late trading, and the Nasdaq index tumbled more than 2%. In the bulk commodity market, due to the expected impact of the Suez Canal congestion superimposed on-demand repairs, international oil prices soared by more than 5%, and U.S. Oil successfully recovered the US$60 mark.
Many popular Chinese concept stocks plummeted
On March 24, local time, the Chinese concept stocks on the US stock market plummeted, and many popular Chinese concept stocks plummeted. According to Wind data, as of the close, Tencent Music has fallen by 27.08%, Vipshop has fallen by more than 21%, iQiyi has fallen by more than 19%, and and have both fallen by more than 15%.
On the news, the SEC announced on March 24 local time that the SEC had passed the final amendment to the “Foreign Company Accountability Act” and sought public comments. The Act requires that if a foreign issuer fails to meet the requirements of the U.S. Public Company Accounting Oversight Board for auditing accounting firms for three consecutive years, its securities are prohibited from trading in the United States.
Xinhua News Agency previously reported that although the bill applies to all foreign companies listed in the United States, American media and market analysts generally believe that it mainly targets Chinese companies listed in the United States. Some analysts pointed out that the “Foreign Company Accountability Act” not only prevents foreign companies from listing in the United States but also harms the interests of American investors who invest in foreign companies and weakens global investors’ confidence in the US capital market.
The Nasdaq fell more than 2%
While China’s concept stocks plummeted, the three major U.S. stock indexes opened higher and lowered lower, and collectively dived in late trading. The Nasdaq index plummeted by more than 2%. According to Wind data, as of the close, the Dow Jones Industrial Average fell 0.01% to 32,420.06 points; the S&P 500 index fell 0.55% to 3,889.14 points; the Nasdaq index fell 2.01% to 12,961.89 points.
Technology stocks are still hardest hit by the decline in US stocks. As of the close, fell 2.00%, Facebook fell 2.92%, fell 2.67%, fell 5.13%, and and both fell more than 4%. Analysts said that Fed Chairman Powell’s replay of the same old tune that day could no longer boost market sentiment. It is understood that Powell reiterated that the Fed will continue to support the economy until the recovery becomes stronger. Powell believes that the rise in US Treasury yields is a manifestation of the market’s optimistic view of vaccination progress and economic growth. Powell emphasized that the US fiscal stimulus will not have a particularly large or lasting impact on inflation. If necessary, Fed policymakers can take action to ease rising price pressures.
Why is the US stock market unwilling to trust the Fed?
Qin Han, chief analyst of fixed income at Research Institute, believes that the core of the problem is that the “black box” of the average inflation targeting system has reduced the Fed’s predictability. The US stock market’s advance pricing of the Fed’s monetary policy tightening is essentially a risk of the Fed’s policy mistakes. In advance, if the Fed continues to be “tepid,” then the situation of the US stock market and the Fed’s continued “wrestling” will not change Spark Global Limited.