Will US Stocks Rebound After the Interest Rate meeting?

One of the hot spots this week is the upcoming FOMC meeting of the Federal Reserve, which will announce the interest rate resolution in the early hours of Thursday.

​After the CPI data was released in December, the market expected the Fed to raise interest rates to "reduce fever". Based on the current general expectation, raising interest rates by 25 basis points is basically "certain" (read more:The Federal Reserve will raise interest rates by 25 basis points. What are the factors affecting the market outlook.

Yesterday, just as the "Super Central Bank Week" approached, just after a wave of big rises, US stocks collectively weakened,$Dow Jones (. DJI) $It ended six consecutive gains and closed down 0.77% to 33,717.09 points. The three major stock indexes,S&P 500 (. SPX) $It fell by 1.30%,$NASDAQ (. IXIC) $Down 1.96%.

Market participants believe that in the face of the menacing Federal Reserve, investors have to be cautious, and they want to "fall into the bag for safety", and their market risk appetite has also decreased.

So will US stocks rebound after the interest rate meeting?

In January, as China celebrated the Spring Festival, US stocks also rose all the way. As of January 27,$Dow Jones (. DJI) $Cumulative increase of 2.5%,$NASDAQ (. IXIC) $Up 11%,S&P 500 (. SPX) $Up 6%, and is expected to achieve the best January performance since 2019.

​Short sellers who just ate meat last year were educated by the market in the first year of 2023.

Ihor Dusaniwsky, head of forecasting analysis at S3 Partners, a data organization, said that bears who have suffered heavy losses are actively reducing their positions. As of last Thursday, bears have accumulated losses of about $81 billion this year.

In this regard, on Monday, Michael Wilson, a strategist at Morgan Stanley, reported that:

The recent rebound of US stocks is more due to the "January seasonal effect" and the "short covering" after the sharp drop

He believes that the Fed has not really turned doves, the bear market is not over, and the rebound is about to end.

However, Scott Rubner, an analyst at Goldman Sachs, believes that the rally of US stocks may last until mid-February.

So Tigers:

  • Do you think the rebound of US stocks will continue?
  • What are your views and opinions on this meeting of the Federal Reserve on interest rates?

Welcome everyone to talk in the comment area, and send tiger coins to everyone in small words!

# How to Interpret Powell's Testimony?

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  • Orange Peel
    ·2023-01-31
    Everyone hope so..!!
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  • Ais18castle
    ·2023-01-31
    it's already priced in but will still have volatility due to fear of recessions
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  • IZTan
    ·2023-01-31
    pray hard
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  • ZenInv
    ·2023-02-01
    The FED will surprise the market
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  • 虎视Tan
    ·2023-02-01
    🥰
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  • JQC
    ·2023-01-31
    👌
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  • Jasontay81
    ·2023-01-31
    Hi
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  • Rocky1985
    ·2023-01-31
    Gg
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  • Alvis89
    ·2023-01-31
    Go od
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  • RocketMan
    ·2023-01-31
    Ya
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  • MarketWizard
    ·2023-01-31
    thanks
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  • Humlikeabee
    ·2023-01-31
    Ok
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  • DUL FIARDI
    ·2023-01-31
    k
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  • matthewtan98
    ·2023-01-31
    great
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