Powell's speech in the early morning released dovish signals, undoubtedly providing the market with a sense of reassurance. He reaffirmed that the Federal Reserve will continue to push forward with the interest rate reduction process and unexpectedly provided forward guidance on possibly ending the balance sheet reduction, bringing a bit of surprise to the market. Currently, the main risks facing the economy are still concentrated in the labor market. Although national non-farm data cannot be obtained due to the U.S. government shutdown, employment conditions in various states can still be tracked, and the overall employment situation is still showing downward pressure.

Meanwhile, U.S. stocks showed a tendency to stop falling and rebound in early morning trading, with two of the three major indexes briefly turning positive. In addition, the selection of the new Federal Reserve Chair is expected to be revealed within this month. Taking one of the current candidates, Bowman, as an example, he has publicly stated that there may be two more interest rate cuts ahead. Regardless of who ultimately takes over, the market generally expects the new Federal Reserve to adopt a faster and more forceful interest rate reduction strategy, which means a series of easing policies may follow.

As long as the recent China-U.S. trade frictions do not escalate further, the global capital markets are expected to gradually stabilize and rebound. With Binance providing $700 million in liquidity support, confidence in the crypto market is gradually being restored, and this funding has indeed alleviated the pressing urgency at the moment. As positive signals continue to be released, the overall market recovery is worth looking forward to.