US FED made clear that they would keep the rate high as long as they possibly can from now on. Which means, more money would flow into the world of US dollar unless other countries raise the rate to match the US.
As we’ve witnessed, UK, Japan and Swiss have given up the rate hike this week and others might follow them sooner or later. That means one thing, stronger US dollar from now on.
Strong dollar usually presses the commodity prices down and some countries feel that as a serious threat. Russia is the one for sure…They’ve ordered to stop export all oil produced products. Instantly, that fact have stopped the oil price go down further today.
It’s not that kind of classical war that humans kill humans, but it is the war and we’re in the middle of it. At the same day, Chinese revealed all sorts of economic booster program. Their stocks were rallied right away.
We’re living in the war of the money…
US stock market was downed once more today.
DJ Index was downed by 0.3%, S&P 500 Index was downed by 0.2% NASDAQ Index was downed by 0.1%. All three main indexes posted weekly loss. This week alone, S&P 500 index was downed by 2.9%. The biggest weekly loss since last March.
Hawkish FED put the stock markets into misery of the downfall. It’ll be continued for a while but as mentioned so many times before, US is still comparatively much better shaped than others and that means money will be inflowed into US market. Adding on this, stronger dollar would the key to the rally.
Apple was up 0.5% but Amazon was downed by 0.2%, MS was downed by 0.8%, Tesla was downed by 4.2%. Then , let’s think how US Auto workers could strike so well organized with strong leadership. Honestly, anyone got any hint that US Automakers still have that strong unions inside of their company? Wasn’t all union members fired during 80s’ with Iacocca? Another mystery it is. It seems good thing for Biden but after this strike, BIG 3 US automakers could be in the history for good.