On Monday, Beijing time, the US stock market atmosphere was poor, and the three major index futures fell all the way after opening, and then continued to fluctuate repeatedly at low levels.
Recently, immigration policy conflicts and political violence in many places in the United States have resonated with stock market turmoil. Large-scale protests in residents in Los Angeles, New York and other places have exacerbated market concerns about the economic outlook. Coupled with policy uncertainty, investors' risk appetite has dropped significantly.
Social unrest and policy risks directly impact the financial market. Affected by the public differences between Tesla CEO Elon Musk and US President Trump, on June 6, Tesla's stock price fell 14.26% in a single day, and its market value evaporated by more than US$150 billion, the largest drop this year.
Marco Kolanovic, former chief market strategist at JPMorgan Chase, believes that there is a possibility of a pullback in the US stock market, and the conflict between Trump and Musk may become one of the factors that trigger the stock market decline. Previously, Koranovic had predicted that the decline in Tesla's stock price may drive a 5%-10% correction in the US stock market.
On June 6, data released by the U.S. Department of Labor showed that non-farm employment increased by 139,000 in May, which was higher than the market expectations of 130,000; at the same time, the unemployment rate in May was 4.2%, the same as last month and in line with market expectations.
market insiders said that some of the recently released U.S. economic data performed less than expected, causing investors to worry about the economic outlook. At the same time, there is still uncertainty in the international geopolitical situation, further aggravating market tension. In addition, fluctuations in corporate profit expectations have also made investors more cautious. Against this background, the futures trends of the three major U.S. stock indexes are under pressure, and subsequent market trends still need to pay close attention to many factors such as economic data, policy trends and geopolitical changes.
In the short term, the upcoming U.S. Consumer Price Index (CPI) report data may become a key node. The market generally believes that the impact of tariffs will begin to appear in the price data in May. It is expected that the year-on-year CPI increase in May will rise from 2.3% in April to 2.5%, while the year-on-year CPI increase will rise from 2.8% in April to 2.9%. If inflation exceeds expectations, the Fed's expectation of interest rate cuts may be further delayed, aggravating stock market volatility. In the long run, the process of resolving American political polarization and social contradictions will determine the direction of its economic resilience and market attractiveness. (Lei Kexin)
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