Overnight, the USA's February CPI data unexpectedly cooled beyond expectations, bringing "breathing room" to US stock investors.

At the close, only the Dow Jones slightly declined, while Technology stocks rebounded strongly, with the Nasdaq rising over 1%.

However, from the fluctuating market conditions during Regular Trading Hours, investors may still need to proceed with caution, as President Trump's multi-front tariff war escalation has somewhat suppressed the gains.

Wall Street believes that if Trump continues to advocate for high-pressure trade policies, this improvement may be temporary, and it is expected to increase the costs of many commodities over the next few months, which will subsequently impact prices.

However, from the specific leading sectors overnight, Technology stocks supported the rise of the S&P and Nasdaq, while the Dow ultimately closed slightly lower. This also indicates a strong willingness in the market to bottom-fish core Assets and go long. With the recent significant sell-off of US Tech stocks, some companies have also fallen to an attractive position. So, is it time to bottom-fish?

Can US stocks be bottom-fished?

According to Bloomberg data, among the seven giants of US stocks. $Apple (AAPL.US)$ 、 $NVIDIA (NVDA.US)$ 、 $Microsoft (MSFT.US)$ 、 $Amazon (AMZN.US)$ 、 $Alphabet-A (GOOGL.US)$ 、 $Tesla (TSLA.US)$ The dynamic PE has fallen below the average level of the past five years. $Meta Platforms (META.US)$ The dynamic PE has also retreated to near the average level of the past five years. According to data, the valuations of large tech stocks in the USA are rapidly contracting compared to other US Stocks.

Notably, at 3 a.m. Beijing time on March 19, Huang Renxun will deliver a keynote speech focusing on AI agents, robotic technology, and the future development of accelerated computing.

Recently, Bank of America reaffirmed its Buy rating for NVIDIA with a target price of $200, advising investors that its stock is currently at a 'very attractive price' ahead of NVIDIA's GTC conference.

Wedbush believes that next week's NVIDIA GTC conference will be a turning point for tech stocks, leading the market to refocus on the AI revolution and future large-scale technology spending.

Notably, according to statistics, in the past eight annual GTC events, NVIDIA had an increase probability of up to 87.5%, with the price fluctuation range between -0.59% and 21.80%. This suggests that NVIDIA's stock price is likely to rise.

For more information about the GTC conference, you can click to view:《Highly Anticipated! NVIDIA's GTC Conference is Coming, Will This Top Event Trigger a Further Rise in Stock Price?》

Investment banks like Wedbush have determined that the valuation contraction of U.S. stocks is heading towards an extreme in the short term, and the uncertainty of policies will trend towards stability in the coming months. Recently, this is a "Gold opportunity" to Buy Technology stocks.

However, for Tesla, Wall Street seems to be rather pessimistic. Recently, multiple institutions have lowered their sales forecasts for Tesla. Evercore ISI has cut Tesla's Target Price from $270 to $235. The firm's Analyst questioned whether Tesla's upcoming 'affordable model' might just be a downgraded version of the Model Y, rather than a completely new product line. At the same time, Tesla's latest version of the FSD driver assistance technology is underperforming expectations, requiring frequent intervention from drivers. JPMorgan stated plainly that Tesla's Q1 delivery volume could reach the worst quarter in nearly three years, and the stock price might drop another 50%.

Looking ahead to the future of the US stock market, what does Wall Street think?

Currently, the market generally believes that the recent decline in US stocks is essentially due to the power struggle between Trump and Powell. Goldman Sachs' trading department stated that US stocks remain fragile and volatile, with uncertainty still high. The firm indicated that a lower CPI level plus a significant reduction in risk asset holdings provide a good foundation for a short-term rebound, but the rebound will quickly be sold off.

According to Nomura's McElligott, the constant theme among everyone I spoke with (especially those in macro) is that these are still tactical rebounds in USA Stocks, rather than opportunities to buy on dips and hold for the long term.

Looking ahead to today, the market will continue to assess the USA's PPI report for February to determine what impact it will have on the PCE data to be released on March 28.

Additionally, the Federal Reserve's interest rate decision on March 20 Beijing time, March 21's "Triple Witching Day" (when stock options, equity index futures, and index options all expire simultaneously, increasing volatility), and the end-of-month portfolio rebalancing will all be key points affecting the trend of USA Stocks.

Analysts believe that since March, Trump's constantly changing stance on tariffs has severely weakened consumer confidence, causing more unrest among businesses and Wall Street.

Moreover, China Minsheng Macro believes that current fiscal measures in Europe are draining funds from the USA stock market, along with Japan's wage growth reaching a new high and the increased possibility of the Bank of Japan raising interest rates again this year. Without liquidity support and the ONRRP "safety cushion," the debt ceiling coinciding with a peak in corporate debt maturities may test USA liquidity, fundamentals, and even USA stocks again in the second quarter.

Overall, while the current market pullback may present some bottom-fishing opportunities, investors should approach it rationally and avoid rushing to enter the market. In the context of a complex and ever-changing global economic environment, maintaining flexibility and closely monitoring market changes will aid in making more rational investment decisions.

Worried about missing good prices in buying and selling? Futu's Stop Limit Orders can help you! Through the individual stock page > Trade > Select Stop Limit Order or Take Profit Limit Order to trade!

Click to view the tutorial:

1. How to set advanced Orders

2. 3 types of Orders: Help you earn more and lose less!  

Editor/Somer