On Wednesday, US stocks finally rose strongly after two days of losses. The DJ30 rose more than 450 points, S&P500 rose 2.29%.
The rise in US stocks was mainly driven by the surge in crude oil. International oil prices rose more than 40% in Wednesday, boosting US stocks higher.
After the Fed’s rescue, the liquidity turning point appeared on March 20, and US stocks started a round of rise from March 23. However, refer to PMI indicators, it is hard to see the bottom of the U.S. economy. Therefore, it is considered that the rise of this round is rather an over fall rebound but not a reversal. Pay attention to the potential risk of the U.S. stocks falling again.
From the history of the two crises(2001 & 2008) in the United States, after the action of the Fed, liquidity turning point appears, which may affect the rebound of US stocks, but the real stage bottom of US stocks lags behind the economic bottom.