Investor optimism about the restart of the US economy continued to rise, stimulating the continued upward trend of US stocks. At this time, the US IPO market is also ushering in the busiest moment of the year.

   Just last week, the US stock IPO market ushered in a small peak: Warner Music and software marketing company ZoomInfo was officially listed. Among them, ZoomInfo’s first day of listing rose up to 100%. It is also known as the first US technology stock after the peak of the epidemic. In addition, both raised funds in excess and raised a total of US$3 billion, the highest level since May last year. Chinese stock companies also went to the U.S. stock market again. The instant retail and distribution platform Dada Group landed on NASDAQ in the United States and became the “instant retail first stock” listed in the United States. The opening price of the first day of listing was 18.3 US dollars, which was less than 16 US dollars. The price rose by 14% and closed at US$15.99 that day, down 0.06% from the issue price.

The data shows that as the US stock market rebounded, the total issuance of US stocks in the entire market (new listings, secondary issuances, block transactions) reached US$65.5 billion in May, the highest monthly issuance record in history, and various companies also ushered in rare Listing window period. As of now, this year’s US IPO companies are mainly technology and medical companies. According to media reports, Carter Mack, president of JMP, an investment bank, said it is working with more than a dozen companies to prepare for a public listing, and four of them are considering advancing the listing to June. Smith, the head of investment agency Renaissance Capital, said: “This will be the busiest time in the US IPO market in recent times.”

  The strong performance of the IPO market also reflects investor optimism. U.S. stocks have rebounded strongly in recent times. The Nasdaq index hit a record high during the trading session last Friday. At the same time, the Dow and the S&P 500 index are only a few minutes away from the record high. However, some market participants are concerned that the current US stock market gains may not be sustainable. Companies with listing plans are “accelerating” the process to complete the listing before the November US election. Investors generally worry that as the US election approaches, the entire market will become unstable again.

  In addition to optimistic market expectations, the market generally believes that the Fed’s stimulus measures are one of the key factors driving the stock market rebound. As the epidemic spreads in the United States, the Fed has introduced unprecedented massive stimulus measures in 2020, but this may cause the stock market bubble to blow, because the information reflected by US stocks and US economic fundamentals is disconnected.

   This week, the Fed will hold an interest rate meeting. The survey shows that Fed officials are unlikely to announce any new measures at this week’s meeting, but many economists expect the Fed to shift to yield curve control later this year. Goldman Sachs also believes that the Fed may take next steps in asset purchase, forward guidance and yield curve control in the future.

   Fed Chairman Powell recently said that he is more worried that the second wave of the epidemic will dampen market confidence. Powell reiterated his commitment to use all Fed tools to support the economy, acknowledging that the Fed has taken conventional actions to “cross the border” in response to the crisis caused by the new coronary pneumonia epidemic. The loan tool will be officially launched soon. In addition, he once again hinted that there is no intention to promote negative interest rates. The Fed recently announced that it will buy US Treasury bonds at a rate of about $4 billion a day this week, down from about $4.5 billion a day last week. In order to ensure the smooth operation of the market during the New Coronary Pneumonia epidemic, the Fed has purchased more than US$1.5 trillion in US Treasury bonds through daily operations in recent months. It is reported that the purchase operation of US Treasury bonds began on March 13, and the purchase scale reached a peak of 75 billion US dollars per day from March 19 to April 1, and then gradually reduced.