Many friends are more concerned about why the decline occurred, which is mainly due to multiple factors leading to a decrease in American investors' expectations for interest rate cuts in 2025, from 100 basis points down to 50 basis points, and many investors even believe that having 25 basis points would be good enough. This is the main reason; the reduction in interest rate cuts has caused some panic among investors.

This is also what we have been saying all along: the current main contradiction is the trend of monetary policy between Trump and the Federal Reserve. When the market leans more towards the aggressive faction led by Trump, which can quickly cut rates, prices tend to rise. When the market believes that the conservative faction led by Powell holds the advantage, prices will fall.

This is the main game right now. Recent data over the past week indeed does not favor Trump and the rate-cutting faction, but Trump himself does not seem to have much reverence for the data; otherwise, he would not have directly fired the head of the Bureau of Labor Statistics due to adjustments in employment figures. As for the Federal Reserve, I feel they are also not very concerned about the data.

Of course, if the data does not favor interest rate cuts, it will be much easier for the conservatives, as they will have more substantial reasons to oppose Trump. Even if the data is not optimistic, they are also reluctant to make rate cuts because it would appear as if they are yielding to Trump. So, looking at it comprehensively, I think the focus is not on the data itself but on which side has more support from the delegates.

As for the upcoming trends, I am still concerned that a decrease in liquidity over the weekend might pose risks.