"U.S. Stocks Plunge, $420Bn Vanishes Overnight"

Just as the Federal Reserve continuously signaled interest rate cuts, the U.S. stock market finally couldn't hold on and began to experience a rapid decline.

On July 11th, almost all major U.S. technology company stocks saw significant drops, including well-known companies like Tesla, Nvidia, and Apple, among seven others. It is estimated that $598.8 billion, equivalent to 4.35 trillion yuan in RMB, vanished overnight.

Why did stocks plummet so tragically in just one night, and what exactly happened in the United States?

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The U.S. stock market begins to crash

Looking at the U.S. CPI data for June, it was only a matter of time before the U.S. economy encountered problems. And once the U.S. economy begins to crash, the first to be affected would be the U.S. stock market.

Last month, the data from the United States indicated that the Federal Reserve had already started to take action, of course, by signaling interest rate cuts. Less than a month had passed, and the U.S. stock market could no longer withstand the pressure and began to crash.

This also implies that there is a significant connection between U.S. stocks and the Federal Reserve's interest rate cuts. A decline in U.S. stocks means that the U.S. technology sector's stocks are starting to fall, and U.S. technology stocks account for a large portion of the U.S. stock market, so the impact is substantial.

The turmoil in the U.S. stock market has led U.S. investors to see that the current U.S. government is almost powerless, thus seeing the U.S. economy in crisis.

The crash of the U.S. stock market is not only hugely impactful for the United States itself but also has a significant shock to countries around the world. Once the U.S. stock market crashes, other countries' stock markets will also be implicated.Including China, the stock markets of several countries have been affected by the U.S. stock market, which has led global stock investors to see that the United States has begun to decline. So why did the U.S. stock market collapse overnight? What caused it?

The U.S. technology stocks began to plummet

The collapse of the U.S. stock market is closely related to U.S. technology stocks. It is important to know that technology stocks in the U.S. stock market hold a dominant position and have a significant influence on the overall direction of the U.S. stock market.

On July 12th, after U.S. media reported the decline of the U.S. stock market, the stocks of seven major U.S. technology companies all experienced a significant drop. What's more terrifying is that these seven giant companies lost nearly 420 billion yuan overnight, a figure that is simply dreadful, equivalent to a Walmart!

With the decline of the stocks of these seven giant companies, investors immediately became panicked and quickly sold their technology stocks. Of course, such behavior has a significant impact on stock markets around the world, and Chinese technology stocks were also affected.

U.S. June CPI data was below expectations across the board

There are many reasons for the sharp decline in U.S. stocks, with the Federal Reserve's interest rate cut being just one of them. In fact, there is another particularly important reason: the CPI data released by the United States last month.

In this data, it can be seen that the U.S. economy has a significant loophole. Although reduced inflationary pressure has eased U.S. economic tensions, it still cannot solve the most important issues for the United States.

Looking at the growth rate of the U.S. economy, the U.S. market is not as optimistic as imagined. Moreover, in June's PCI, there was a phenomenon of negative growth, which did not meet the desired standards at all.

These performances have also led many U.S. investors to be very disappointed with the current U.S. economy and unable to see the prospects for the future of the U.S. economy. Although the current U.S. economy cannot collapse directly, there are too many uncertain factors, and no investor is willing to take such a risk.In contrast, after seeing no hope in the United States, these investors have invested all their funds in gold. As a result, the status of the US dollar on the international stage will also be affected, while the investment value of gold will continue to rise, and it will also receive corresponding protection.

The collapse of the US stock market has a significant impact on the world. At present, no one wants the US stock market to collapse, nor do they want to see the United States decline due to economic reasons. This is because the US economy affects the global economy, and there is a more or less direct connection with the financial sectors of various countries around the world.

Therefore, the collapse of the US stock market has a considerable impact on the world. Firstly, it will frequently attack the global financial market. Moreover, the US economy has already shown a huge "vulnerability," so the global economic system will also be affected.

The collapse of US stocks hurts investors the most. They will sell a large number of technology stocks in their hands in a short period to avoid risks and try to minimize losses.

China's stock market is also affected by the US economy. From the overall market, we can see that China's A-share market has undergone slight adjustments. Although it is not very obvious, it is better to be cautious. Once the Chinese stock market is implicated, it will undoubtedly be a disaster for the global economy.

At this time, the stock market will also enter a period of depression. It will be more difficult for listed companies to raise funds, and investors will be confused about their judgment of the stock market. This will lead to significant problems in corporate operations.

To alleviate these issues, companies will have to lay off employees or reduce salary payments, which will greatly affect the company's profits. Moreover, the most critical aspect is that it will lead to a further decline in residents' consumption levels.

Therefore, the collapse of the US stock market not only has a significant impact on the US economy but also has a huge impact on the world.

The impact of the Federal Reserve's interest rate hike on the worldOver the years, the continuous development of the U.S. economy has made it the "leader" among countries worldwide, and of course, its economic system has also become the focus of global attention.

Especially in the past two years, after experiencing the global pandemic, the economic development of various countries has shown a significant decline. Moreover, to stimulate consumer spending, central banks have introduced many monetary policies, among which the U.S. has done a very good job in this regard.

However, a large amount of investment has led to an increasing probability of currency inflation, and the rapid rise in prices has made it difficult for many ordinary people's lives to be guaranteed, making the lives of American citizens even more unbearable, and even leading to a large number of homeless people sleeping on the streets.

Regardless of whether the Federal Reserve ultimately raises or lowers interest rates, it has a huge impact on the global economy. Moreover, the issuance speed of U.S. Treasury bonds is too fast, so the final choice is to lower interest rates.

The U.S. economy still has many unresolved issues, coupled with the collapse of the U.S. stock market, it must be said that this is the result of "self-inflicted" consequences.

In conclusion, there are many factors leading to the sharp decline in U.S. stocks. If the U.S. government still cannot face up to this issue, then the U.S. economy will definitely have a huge impact on the world in the future.

At the same time, investors should also be awakened not to invest blindly, otherwise, they may lose their entire fortune. Finally, I hope that the U.S. can solve the problem as soon as possible.