Epic Plunge! Dow Jones plummets nearly 1,300 points, Nasdaq crashes over 5%! Panic index soars, tech's six titans evaporate $570 billion overnight.

Wall Street financial magnates were eagerly anticipating, investors were anxiously waiting, and analysts expected the CPI to collapse, the Federal Reserve's rate hike would ease, and the stock market would flourish. However, the greater the hope, the greater the disappointment; the stronger the expectation, the more severe the fall! The market was expecting the US August CPI to possibly plummet to 7% or even below 6%, but the CPI announced on Tuesday (Washington time) greatly exceeded expectations, with an 8.3% year-on-year increase in August CPI.

The Dow Jones plummeted 710 points after the opening, plummeted three thousand feet during the session, and closed with a massive drop of 1,276 points. The drop was 3.94%, reporting 31,104.97 points; the Nasdaq fell 632.84 points, a drop of 5.16%, reporting 11,633.57 points; the S&P 500 index plummeted 177.72 points, a drop of 4.32%, reporting 3,932.69 points.

The inflation collapse theory has been debunked, Wall Street financial magnates are stunned, investors' faces are awkward, and the Dow Jones plummeted 700 points at the opening, how will the market go? What to do?

Let's look at the specific situation. Data released by the US Department of Labor on Tuesday showed that the August Consumer Price Index still rose 0.1% month-on-month and 8.3% year-on-year. The core CPI, which excludes the more volatile food and energy components, rose 0.6% month-on-month and 6.3% year-on-year, both higher than expected. This provides the most important data support for the Federal Reserve to firmly implement an aggressive rate hike route on September 21st.

The Federal Reserve will hold its next monetary policy meeting on September 20-21. The August CPI report is the last major data released before the meeting. After the August CPI data was announced, the market's bets on a larger rate hike by the Federal Reserve increased.

The market currently expects a 100% chance of the Federal Reserve raising interest rates by 75 basis points for the third consecutive time at the September 20-21 meeting, and bets on a 75 basis point rate hike in November have also increased. The current forecast is that the benchmark interest rate will reach around 4.3% by next March at the earliest.

This interest rate is the overnight lending rate between financial institutions, which, after being passed on to real enterprises through the market, significantly increases financing costs, and of course, in turn, promotes the rise in Treasury bond yields. Ultimately, this leads to a global dearth of money, a sharp increase in market investment risks, the bursting of financial bubbles, the triggering of financial crises, and then an increased possibility of economic recession.

Investors' investment risks are once again on the table. The new round of risks in the US stock market is highly contagious to the global market, especially emerging markets, including Asian stock markets.Once again, investors are reminded that during the appreciation cycle of the US dollar and the interest rate hike period of the Federal Reserve, the bullish sentiment in the stock market, foreign exchange market, futures market, and precious metals market has essentially disappeared. The investment strategy should be dominated by conservative investments, and risk-seeking investments should be reined in!

At present, the Chinese yuan's exchange rate against the US dollar is the strongest among the five international currencies, with the lowest depreciation rate; A-shares have the strongest resistance to market downturns globally, which is undoubted. However, the contagion of the sharp decline in US stocks is too strong, and no country's stock market can stand alone. Perhaps they can withstand the bearish pressure for a day or two, but they will inevitably make up for the decline later! A-share investors still need to pay attention to risks!

Affected by the bearish impact of the high inflation data in the United States in August, the stock markets in the Asia-Pacific region fell collectively: the Japanese stock market plummeted by about 2.8%; the Korean won hit a 13-year low; the Hong Kong stock market closed down significantly.

In other markets, the price of crude oil futures for delivery in October at the New York Mercantile Exchange fell by 47 cents, a decrease of 0.5%, closing at $87.31 per barrel. The price of gold futures for delivery in August fell by $23.20, a decrease of 1.3%, closing at $1,717.40 per ounce.

Due to the rising expectations of the Federal Reserve's interest rate hike, the US dollar index rose sharply on the 13th. The US dollar index, which measures the dollar against six major currencies, rose by 1.37% that day and closed at 109.8150 in the foreign exchange market.