It has to be said that A-share investors are really unlucky. Every time A-shares take a break, the overseas markets surge, and then when A-shares open, the overseas markets start to correct, putting pressure on A-shares. Yesterday, investors rushed in with high spirits, but A-shares opened high and closed low, almost turning green, with trillions of funds being trapped. Yesterday, the Asia-Pacific stock markets fell across the board, with Hang Seng Tech falling nearly 5%. Last night, the European and American stock markets also fell across the board, especially the US stocks, with the Nasdaq falling by 1.96%. A-shares are always late to the party and early for the beating.

We believe that there are two main reasons for the pullback in US stocks last night:

First, this week will see a dense disclosure of earnings reports from US tech giants. The market is worried that the reports will be disappointing, leading to preemptive selling for risk aversion. Coupled with the recent consecutive surge in US stocks, there is significant selling pressure, and funds have the desire to take profits. Last Thursday (26th), Intel announced its latest quarterly earnings report, with revenue of $14.04 billion in the fourth quarter of 2022, lower than market expectations, marking the lowest quarterly revenue since 2016. Intel's stock price also plummeted that day.

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Second, this week will usher in a "Super Central Bank Week," with the Federal Reserve, the European Central Bank, and the Bank of England announcing their interest rate decisions. Attention is focused on the Federal Reserve's rate hike on Thursday this week. The current market expectation is a 25BP increase, which should not be much of a debate. The key issue is whether there will be further rate hikes and when the rate cuts will begin.

Currently, the market has already started to speculate on rate cuts within the year. If the Federal Reserve takes a more hawkish stance this week, it will shatter the market's illusions, and US stocks may continue to decline.

Affected by the above two bearish factors, the three major US stock indices closed down last night, with the Dow Jones Industrial Average falling by 0.77% and the Nasdaq falling by 1.96%.

Due to the sharp drop in Hong Kong stocks yesterday, coupled with the pullback in US stocks, Chinese concept stocks also fell across the board, with KWEB plummeting by 4.80%, and the NASDAQ Golden Dragon China Index plummeting by 4.10%. Among them, Alibaba's share price fell by 6.07%, Pinduoduo's share price fell by 7.19%, and Tesla's share price fell by 6.32%, leading to a significant drop in the US new energy vehicle sector.

At present, the core contradiction in US stocks is whether the US economy will experience a hard landing. Nancy Lazar, Chief Global Economist at Piper Sandler, said that the upcoming economic recession in the US this year is more like the 1970s than the 2008 recession.

Risk warning:The stock market carries risks, and investment should be approached with caution. This article does not constitute investment advice, and readers should think independently.