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Last night, the financial markets experienced a thrilling turmoil. The expected big dump did not occur as anticipated; instead, a series of unexpected market movements took place.
Before the opening of the US stock market, the release of a key data point reversed the market trend. The number of job vacancies in the US dropped to a 10-month low in July, with the number of vacancies per unemployed person falling to 0.99, marking the first time it has fallen below 1.0 since the economic recovery post-pandemic. This data suggests that the job market is cooling down, corporate hiring enthusiasm is weakening, and the employment situation is gradually shifting from "more monks than porridge" to "fewer monks than porridge."
This news quickly triggered a market reaction. Investors generally believe that this increases the likelihood of future interest rate cuts by the Federal Reserve. This was followed by a rebound in the bond market, a new high in gold prices, an increase in U.S. stock index futures, and a weakening of the dollar exchange rate.
It is worth noting that the actions of the Federal Reserve seem more inclined to stabilize the bond market rather than the stock market. Federal Reserve Governor Waller and Atlanta Fed President Bostic successively made dovish remarks, sending a signal to the market about interest rate cuts. This directly drove up U.S. Treasury prices and lowered yields. Analysts believe that the Fed's move aims to prevent the bond market from getting out of control and to avoid the impact of sustained increases in long-term yields on the entire financial system.
At the same time, a dramatic scene occurred in the US stock market. As the market approached closing, a sudden influx of $3 billion in buy orders surged in, quickly lifting the originally weak indices. The appearance of this mysterious capital was humorously dubbed "Ramp Capital" operations, akin to an invisible hand supporting the faltering market.
This series of events once again proves that the financial market is unpredictable, often leading to unexpected turns. Investors need to remain vigilant at all times and pay attention to various factors that may influence market trends, including economic data, central bank attitudes, and the movements of large funds. At the same time, this also highlights the important role that policymakers play in maintaining financial stability.