Will the market continue to drop, and should short positions consider taking profits?
Let's first take a look at the macro aspect. There is inconsistency within the U.S. judicial system, as well as with the government system, showing a chaotic situation, which greatly harms market confidence.
On Thursday, a U.S. federal judge stated that the temporary restraining order against the Trump administration's "ban on Harvard from recruiting international students" would be expanded. The highest court has not yet ruled, and the temporary stay issued by the U.S. Federal Circuit Court has paused the U.S. International Trade Court's ruling that prevented the Trump administration from implementing global tariffs. At the same time, the federal judge also halted the ban on Harvard University recruiting international students and maintained the visas.
After the court system faced setbacks, Trump quickly changed his previously stubborn tone and met with Powell. Although he later stated that no consensus was reached regarding interest rate cuts, both sides continued to express their views, one side saying they want to observe inflation and employment, while the other said it was too late for a cut. However, the fact that they could meet is already a sign of easing tensions; it can also be said that if there is no consistency, a major problem may arise.
Finally, looking at the data, last night, the U.S. first-quarter GDP was slightly revised from -0.3% to -0.2%, and the PCE price index was revised down to 3.4%. Taken together, this conveys a signal that the economy is not as bad as expected and that prices are under control. Subsequently, news came out that there would be no interest rate cuts due to this matter, which led to a market decline.
Tonight, the focus should still be on the core PCE data for April that will be released tonight.
Conservative short positions can consider taking profits, but specifics should wait for the data release.
Poison Brother will also notify fans in the small circle at the first time to ambush.
Divine order continues to be laid out.
