To The Moon

After declining for three weeks in a row, the major U.S. stock indexes regained their footing, with the $NASDAQ(.IXIC)$ surging more than 7%, the $S&P 500(.SPX)$ adding more than 6%, and the $DJIA(.DJI)$ rising more than 5%. The results marked a near mirror-image reversal from the previous week, when the S&P fell into a bear market as it tumbled more than 20% from a recent high in early January. As of last friday, the Indexes and Market weekly and YTD performances are as below: $S&P/ASX 200(XJO.AU)$ ，$Straits Times Index(STI.SI)$. The key event last week was Fed Chairman Powell's speech at the hearing. Market analysis said that there is not much new content in Powell's speech, The key is to admit the possibility of economic recession and not rule out any possibility of raising interest rates, that is, the FED may raise interest rates by 100 basis points at a time. It's a bull trap or bottom? Please join your idea below the comment session. In the medium and long term, the previous Goldman Sachs report has certain guiding significance: in the future, the market may be more concerned about the level of profit margins rather than the nominal growth rate of revenue, that is, the ongoing shift in market risk appetite may be a longer-term process. To a certain extent, this means that the overall rate of return is low. Macro Factors To Focus： Yield Pullback: Prices for U.S. government bonds rose for the second week in a row, sending the yield of the 10-year U.S. Treasury bond down to 3.13% on Friday. That’s down from a recent high on June 14 of 3.48%—a level not seen since April 2011. Sagging Indicators: A monthly survey of U.S. corporate purchasing managers showed that growth in economic activity across manufacturing and services fell to the lowest level in 5 months. In the eurozone, a similar survey showed that growth fell to the lowest in 16 months as rising interest rates weighed on the economy. Homebuying Anxiety: U.S. mortgage rates remained volatile as homebuying season ramped up, with the average rate for a 30-year fixed-rate mortgage climbing to 5.81%, according to the latest weekly report from Freddie Mac. A year ago, the average was around 3.00%; the last time the average was at today’s level was in 2008. Inflation Report Ahead: A report scheduled to be released on Thursday will be closely watched for any signs that U.S. inflation may have peaked. The government will update its Personal Consumption Expenditures Price Index, the FED’s preferred gauge for tracking inflation. The latest report showed that PCE inflation moderated at an annual rate of 6.3%, although it remained close to the highest level in four decades. Sector Performances: Most S&P sectors except Energy and Basic Materials closed higher, which fell 6.01% &1.4% for last week respectively. Consumer Cyclical led the rebound with 10% jumping, Real Estate and Communication Services increased more than 9%, The healthcare and technology sectors rose over 8% weekly, while the Consumer Defensive , utilities, financial, insudstiral sectors sectors rose 4%~5% respectively. Recommend to Read: Tiger Charts: What Sectors Can Survive in Rate Hiking Cycles Top Gainners of S&P 500 $Norwegian Cruise Line(NCLH)$ ,$Carnival(CCL)$ ,$Etsy(ETSY)$ ,$Penn National Gaming(PENN)$ ,$Moderna, Inc.(MRNA)$ , $Royal Caribbean Cruises(RCL)$ ,$Caesars Entertainment(CZR)$ ,$Paycom(PAYC)$ ,$IPG Photonics(IPGP)$ ,$ServiceNow(NOW)$ are the top 10 gainners of last week. Other Markets: Commodity Retreat: U.S. crude oil $Light Crude Oil - main 2208(CLmain)$ prices fell for the second week in a row amid growing concerns that rising inflation and interest rates could trigger a recession. Oil was trading around $107 per barrel on Friday, down from more than $120 a couple weeks earlier. The price of copper, an industrial metal, posted an even steeper decline, sinking to a 16-month low. Gold Closed Down Slightly: Gold$Gold - main 2206(GCmain)$ declined 0.78% to $1828 per ounce. Asset hedging demand may give the gold price more flexibility. At the same time, under inflation or stagflation,the performance of goldassets is also the best. Bitcoin Stabilizes: The price of Bitcoin, the most widely traded cryptocurrency, hovered around $20,000 to $21,000 for most of the week. That relatively narrow range came after Bitcoin tumbled about 30% in the previous week; at the end of May, it was trading above $32,000. Japan's Inflation Challenge: Although Japan’s inflation rate remains far below the rates of most of the world’s developed economies, the 2.5% annual figure recorded in a report released on Friday exceeded the Bank of Japan’s 2.0% target for the second month in a row. The central bank has so far avoided joining other countries in raising interest rates to fight inflation. The week ahead: June 27-July 1 Monday Durable goods orders, U.S. Census Bureau Pending home sales, National Association of Realtors Tuesday S&P/Case-Shiller 20-City Composite Home Price Index Consumer Confidence Index, The Conference Board Wednesday First-quarter GDP, third estimate, U.S. Bureau of Economic Analysis Thursday Personal Consumption Expenditures Price Index, U.S. Bureau of Economic Analysis Weekly unemployment claims, U.S. Department of Labor Friday Institute for Supply Management’s manufacturing index Construction spending, U.S. Census Bureau What's your idea of the current market? Bull Trap or Bottom? Click here to join the discussion and win coins!