As inflationary pressures in the United States heat up, President Joe Biden released a $6 trillion (HK$46.8 trillion) budget on Friday, prompting former Treasury Secretary Summers to warn that the budget is based on outdated economic forecasts and could pose a risk of economic overheating for the United States. This is also likely to intensify the debate about when the U.S. Federal Reserve will begin to scale back its debt purchases, with particular attention to the U.S. employment data for May released this Friday, which could show how strong local economic growth and inflation.
The market expects the U.S. non-agricultural jobs in May grew by 650,000, if the forecast is accurate, it will appear that the weak performance in April only increased by 266,000 is only an isolated incident, and then the Federal Reserve to collect water is expected to heat up, many recent Federal Reserve officials have said it is time to start discussing the tapering of debt purchases.
The Federal Reserve Board to collect water potential to touch the stock market, due to the U.S. stock market closed on Monday for the holiday, as of last Friday, the Dow and the S&P index in May rose 1.93% and 0.54%, respectively, to technology stocks, mainly the Nasdaq fell 1.53%.
Looking ahead to June may not be a surprise, according to Bespoke data, the past 60 years the Dow in June only rose 0.12% on average, and 52% chance of recording an increase; if only the past 20 years of statistics, the Dow only 40% chance of rising. Therefore, June and September is considered the worst month of the year, the Dow fell by an average of 0.7% in September.
Interestingly, last year for betting on innovation and technology and soaring “Goddess of Technology” Wood (Cathie Wood) flagship exchange-traded funds (ETF) ARK Innovation ETF (ARKK), now become a number of institutional investors short-selling targets to rush the risk of stock market decline.
Among them, Blackstone Alternative Solutions, a subsidiary of BlackRock, bought 1.3 million shares of ARKK stock put options in the first quarter; hedge funds Pura Vida and Balyasny Asset Management also bought about 622,500 and 436,500 shares of put options in the first quarter, respectively.
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