The ADP data was released before the market yesterday. The expected increase is 650,000, and the actual increase is 978,000, which is very strong. In fact, the ADP data is growing steadily every month. Only last month's non-agricultural data fell far short of expectations, so just wait for tonight's non-agricultural data.
And because ADP data once again surpassed expectations, market fears about the Federal Reserve's monetary policy tightening and even interest rate hikes began to grow again. Last night $Nasdaq Composite Index (.IXIC.US)$ Under pressure, the performance was poor throughout the day. In fact, friends reading my Wenzhang should have known that I mentioned the current situation last week. The market's performance has been weak for more than a week, and it has not been able to stand in a critical position. In fact, they have been waiting for the key data for the past two days.
Well, tonight's non-agricultural data came out. There are 3 types of situations: far exceeding expectations, meeting expectations, and far falling far short of expectations.
1. If it greatly exceeds expectations, then the stage the US is currently in is the post-yield stage — high inflation and high employment stage. I think this stage is in line with normal logic, proving that the Fed's monetary stimulus is effective, so even if the currency is tightened in the future, the market will be prepared step by step, and the market will be fully prepared. We don't need to panic. The company's growth rate exceeds the actual interest rate, then the valuation will still rise.
2. If the data is in line with expectations, then the market may fluctuate upward, and the fluctuation should not be too large.
3. But if tonight's data is still the same as last month, far below expectations, this is the stage I least want to see, that is, the US...