Overnight Market Review (2022.7.15) On Thursday, European and American stock markets continued to slump. The three major U.S. stock indexes only turned red in late trading. The Fed’s “hawk” Bullard reassured the market and reduced the possibility of the Fed’s aggressive rate hike in July by 100 basis points. sex. In addition, two Wall Street investment banks JPMorgan Chase and Morgan Stanley released less-than-expected financial reports, which also cast a cloud over the next earnings season.
One of the Fed hawks: expressed support for raising interest rates by 75 basis points this month, surprising the market that originally thought the Fed was likely to expand the rate hike to 100 basis points. St. Louis Fed President Bullard (James Bullard) also said he supports a 75 basis point rate hike.
According to the Fed Observer, the probability of the Fed raising interest rates by 100 basis points in July fell to 42% from 78% on Wednesday (13th) after Waller and Bullard spoke.
Trading strategy deployment: it is recommended to go short at high levels
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