On the eve of the Federal Reserve's decision and the release of CPI data, Morgan Stanley clients flocked to US stocks
On the eve of the announcement of the US monetary policy, the biggest concern for US stock traders is missing out on the potential next round of gains. Traders at JPMorgan Chase indicated that clients are cutting back on safe investments and increasing their long positions, indicating their focus on upward opportunities. Meanwhile, tech stocks continue to lead the US stock market, with the S&P 500 Index and the NASDAQ 100 Index closing at historic highs. So far this year, the S&P 500 Index has risen by nearly 13%, while the NASDAQ 100 Index has surged by 14%. The research team led by Jill Carey Hall pointed out that private and hedge fund clients have dominated the net buying volume, and share buyback execution is also approaching record levels, indicating a renewed influx of clients into the US stock market
According to the Zhitong Finance and Economics APP, on the eve of the announcement of the US monetary policy, the most worrying thing for US stock traders is the fear of missing out on the potential next round of gains. The US inflation data released a few hours before the Federal Reserve interest rate decision on Wednesday is likely to cause significant market disturbances. However, according to a circulated statement on Tuesday, there is "no panic" on the trading desk of JPMorgan Chase, and the risk is also minimal.
Matt Reiner, a stock sales trader at the bank, said in the statement, "Clients are worried about missing out on the opportunity for gains, not declines. My clients are reducing safe investments and increasing long positions."
As the US stock market continues to hit new all-time highs, investors are concerned about being left behind. The JPMorgan Chase US Market Intelligence Trading Desk wrote in the same statement that if US inflation data remains stable or slightly increases, combined with Federal Reserve Chairman Powell holding a neutral or dovish tone at the press conference, these factors will be positive for the stock market.
On Tuesday, Apple (AAPL.US) announced several news related to artificial intelligence features, causing the company's stock price to soar, leading to both the S&P 500 Index and the NASDAQ 100 Index closing at new all-time highs. So far this year, the S&P 500 Index has risen by nearly 13%, while the NASDAQ 100 Index has surged by 14%. At the same time, short-term volatility has dropped to low levels.
Tech stocks continue to lead the US stock market, with the sector's weight in the S&P 500 Index now reaching 32%, approaching the record 35% weight set during the internet era. The gains this year have been highly concentrated, with only four stocks - NVIDIA (NVDA.US), Microsoft (MSFT.US), Meta Platforms (META.US), and Amazon (AMZN.US) - seeing returns of over 56%.
Bank of America strategists also mentioned that clients are once again pouring into US stocks, especially tech stocks. In a report published by the research team led by Jill Carey Hall on Tuesday, it was stated that private and hedge fund clients dominated the net buying volume, and buyback execution has reached near-record levels