Wall Street issued increasingly loud warnings: US stocks are facing the test of a correction in this big bull market. Strategists from Goldman Sachs Group, Morgan Stanley and Citigroup issued the latest forecasts, believing that there may be a negative shock to disrupt the stock market's continuous upward momentum. The spread of the delta strain, the weak global economic recovery or the withdrawal of stimulus policies by the central bank will all pose risks. “High valuations increase the vulnerability of the market,” Christian Mueller-Glissmann, managing director of portfolio strategy and asset allocation at Goldman Sachs, said in an interview. “If there are new negative developments, it may cause economic growth to suffer. It triggered a rapid hedging trend in the market."

U.S. Treasury Secretary Janet Yellen warned that the temporary measures taken by the Treasury Department to prevent the federal debt from breaking through the ceiling may be exhausted sometime in October. Yellen hinted to congressional leaders that she is ready to step up discussions with lawmakers. Raising or suspending debt ceiling matters. "Based on the best and up-to-date information we can get, the most likely outcome is that cash and unconventional measures will be exhausted in October," Yellen said in a letter to Congress. "As more information becomes available in the future, we will continue to keep the Congress updated on the situation."

The President of the Federal Reserve Bank of New York, John Williams, said that it may be appropriate for the Fed to start reducing debt purchases before the end of the year. "Assuming that the economy continues to improve as I expected, it may be appropriate to start to slow down asset purchases this year," Williams said in a speech prepared for online events on Wednesday. "I will carefully evaluate the labor market data to be released and its significance to the economic outlook, and consider risk factors such as the impact of the delta strain."

The number of job vacancies in the United States rose to a record high in July, indicating that labor shortages continue to exist, posing a challenge for companies to meet customer needs. According to the Job Vacancies and Labor Turnover Survey (JOLTS) released by the US Department of Labor on Wednesday, the number of job vacancies rose to 10.9 million in July and was revised up to 10.2 million in June. Economists surveyed by Bloomberg expected a median of 10 million. Since the number of non-agricultural jobs dropped by millions last year, the rapid recovery of economic activity has led to a serious shortage of employees in many enterprises.

Bond traders bet that European Central Bank President Christine Lagarde will try not to “frighten” the market on Thursday. In the past three months, the yield premium of 10-year Italian government bonds relative to German government bonds of the same maturity has basically remained at a level of slightly over 100 basis points. But despite this, more and more market participants are speculating that the European Central Bank will begin to curtail the stimulus measures introduced during the epidemic.

The Governor of the Bank of England Bailey said that, like some other officials, he also believes that the minimum standard for tightening monetary policy has been reached. This statement may strengthen market expectations for the Bank of England to raise interest rates next year. Bailey said in Parliament on Wednesday that at the August meeting, central bank officials were divided on whether there was clear evidence that the economy was eliminating idle capacity and "sustainably" achieving the 2% inflation target, and that the numbers of the two factions were basically the same. The Bank of England has previously stated that it will maintain its policy at least until these conditions are met.

The Bank of Canada kept key interest rates and bond purchases unchanged, while reiterating that economic growth is expected to accelerate in the second half of the year. Central Bank Governor Tiff Macklem and other committee members issued a statement on Wednesday that they will maintain the overnight policy rate at a historical low of 0.25%, and promised not to raise interest rates until the damage caused by the epidemic is completely repaired. The bank also stated that it will continue to buy 2 billion Canadian dollars (1.5 billion US dollars) of Canadian government bonds every week, and it reiterated that as the economic recovery progresses, asset purchases will slow down.

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