Many investors may not have rested well last night, causing a global decline: - The Dow Jones Industrial Average fell by 0.8%, the S&P 500 fell by 1.1%, and the Nasdaq fell by 1.5%. Nvidia fell by 2.1% and Microsoft fell by 1.7%. Both companies have a Market Cap of over $30 trillion, exerting a significant influence on the S&P 500 and Nasdaq. - The U.S. stock market's decline was accompanied by a drop in gold, the U.S. dollar, U.S. Treasury bonds, and BTC. Although the decline was not significant, it was sustained. 1. This decline is like a crack in a dam. Although it was not triggered by any news, there were signs—confirming the $108 level of the U.S. dollar and the 4.6% yield of the 10-year U.S. Treasury bond, which began to have a negative impact on the global market. It should have been observed closely when the 10-year U.S. Treasury bond yield reached 4.5% last week. 2. The root cause of the high levels of the U.S. dollar and U.S. Treasury bond yields is the Federal Reserve, which turned 'hawkish' after the December meeting. However, the market only reflected a reduction in the number of interest rate cuts by the Federal Reserve next year (from 4 times to 1.5 times), but did not price in the 'no rate cut in January meeting' at all. After three consecutive rate cuts, the sudden pause in the market means something different from a single or two declines. 3. The market is about to enter a period of frequent major events, and investors can only hope for the upcoming release of non-farm payroll and CPI data. Based on past experiences, there are always miracles in economic data whenever there is a major market decline. - January 10, the U.S. released non-farm payroll data for December - January 15, the U.S. released CPI data for December - January 20, Trump was sworn in—expected to issue at least 25 executive orders on his first day in office - January 30, the Federal Reserve announced the Intrerest Rate decision—expected to announce 'no rate cut'. 4. However, next week may be a challenging one, with almost no major news, meaning the market may experience a natural feedback loop. Especially if this year's 'Santa Claus rally' fails, the market's concerns will spread from the U.S. stock market.