2018-10-13 10:44:00 Sat ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve

Dow Jones tumbles 3% or 831 points while NASDAQ tanks 4%, and this negative investor sentiment rips through most European and Asian stock markets in early-October 2018. President Trump blames the Federal Reserve for its *crazy tight* interest rate hike. However, this criticism may not be the main trigger for bearish massive stock sell-off. The relentless Sino-American trade impasse remains on the radar for stock market investors. Also, the 10-year Treasury bond yield rises above 3%, and then many institutional investors switch from stock bets to Treasury bond purchases.
Due to these unforeseen circumstances, the International Monetary Fund (IMF) downgrades global economic growth from 3.9% to 3.7% as of October 2018. This latter downgrade seems to trigger ubiquitous investor panic that manifests in the recent surge of the CBOE volatility index (VIX) well beyond 22 points.
Treasury Secretary Steven Mnuchin views the severe bloodbath from S&P 500 to NASDAQ as a normal stock market correction. Mnuchin considers this widespread stock market correction as part of the healthy fundamental recalibration primarily for tech titans such as Facebook, Apple, Microsoft, Google, Amazon, Netflix, and Twitter (FAMGANT). These tech titans exhibit prior stock market overvaluation in the interim period from late-2017 to early-2018.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-10-09 09:34:00 Monday ET

The current Trump stock market rally has been impressive from November 2016 to October 2017. S&P 500 has risen by 21.1% since the 2016 presidential elec
2019-07-23 09:22:00 Tuesday ET

Harvard economic platform researcher Dipayan Ghosh proposes some alternative solutions to breaking up tech titans such as Facebook, Google, Apple, and Amazo
2019-05-09 10:28:00 Thursday ET

President Trump ramps up 25% tariffs on $200 billion Chinese imports soon after China backtracks on the Sino-American trade agreement. U.S. trade envoy Robe
2025-07-01 13:35:00 Tuesday ET

In recent times, financial deglobalization and asset market fragmentation can cause profound public policy implications for trade, finance, and technology w
2018-09-11 18:36:00 Tuesday ET

President Trump tweets that Apple can avoid tariff consequences by shifting its primary supply chain from China to America. These Trump tariffs on another $
2019-04-11 07:35:00 Thursday ET

European Central Bank designs its current monetary policy reaction function and interest rate forward guidance in response to key delays in inflation conver