---
title: "European and American stock markets stabilize, with investors' expectations still diverging"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/210912656.md"
description: "On Tuesday, the European and American stock markets stabilized, but investors have divergent expectations for the future trend of the stock market. JPMorgan Chase's report stated that concerns about US inflation led to panic selling, with sectors such as artificial intelligence being heavily liquidated. The Bank of Japan's interest rate hike led to a strong yen, causing the Japanese stock market to hit a record low. JPMorgan Chase predicts that until market structure balance is achieved and geopolitical risks are overcome, any rebound will not last long"
datetime: "2024-08-06T23:00:40.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/210912656.md)
  - [en](https://longbridge.com/en/news/210912656.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/210912656.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/210912656.md) | [繁體中文](https://longbridge.com/zh-HK/news/210912656.md)


# European and American stock markets stabilize, with investors' expectations still diverging

With a sharp rebound in the Japanese stock market, European and American stock markets stabilized on Tuesday. However, there is still a sense of pessimism in the market, with investors having significantly different expectations for the future direction of the stock market. According to a report from JPMorgan Chase, initial concerns triggered by weak inflation in the United States ultimately led to panic selling. Sectors that had seen significant gains in the previous period, such as artificial intelligence, experienced substantial sell-offs. In addition, the Bank of Japan's interest rate hike further strengthened the yen, leading to a record decline in the Japanese stock market and exacerbating market panic. The bank believes that rapid market declines often lead to ecological imbalance in the market, including increased volatility, panic selling, and margin call notices for leveraged investments. The bank expects that any rebound will not last long until a new market structure balance is reached and geopolitical risks in the Middle East are overcome

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