This week marks the end of the Federal Reserve's first interest rate meeting of 2023, after which the results of the interest rate hike will be announced.

However, the market has widely predicted that this time the increase will be reduced to 25 basis points.

Almost at the same time, the European Central Bank and the Bank of England also hold interest rate meetings and announce their first interest rate hike of 2023.

However, unlike the Federal Reserve, it is believed that both the European Central Bank and the Bank of England will raise interest rates by 50 basis points this time.

This is unfavorable news for the US dollar index, as the dollar's interest rate hike gradually decreases while the eurozone and the UK's interest rate hikes remain at 50 basis points, which means the dollar's exchange rate will further decline.

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It is clear that the US dollar index, which was pushed up by the Fed's aggressive interest rate hikes, has fallen significantly, and it is believed that it will continue to fall in the future.

It seems that investors have already predicted the extent of the central banks' interest rate hikes this time, and the biggest confusion now is when the Federal Reserve will start to cut interest rates.

In fact, the market has widely believed that the Fed should stop raising interest rates and start cutting them.

It is this optimistic expectation that has driven a rare rebound in the stock markets of various countries.

Since the beginning of 2023, the NASDAQ index has risen by nearly 9%, and the indices of France and Germany have also risen by about 9%, while the Japanese stock market has risen by 5%.

At the same time, the prices of major government bonds in several Western countries have rebounded significantly.

But the problem is that the Fed still firmly believes that inflation has not reached the target area and needs to continue to raise interest rates, and maintain higher interest rates throughout 2023, which means that there is no possibility of interest rate cuts for the time being.

Many past experiences and lessons have shown that if investors take investment actions contrary to the Fed, they will often suffer greater losses.

Since the Fed's hawkish thinking will not change in the short term, it may mean that when investors wake up, the stock market will face the next wave of selling.

Yesterday's closing situation of the US stock market seems to indicate that the market has started to worry about the Fed's statement after the meeting.

By the time of the close, the three major US stock market indices fell in sync, with the NASDAQ index falling by 2%, the highest increase this year, but also the largest decline last night.

The Dow Jones fell by more than 260 points, continuing to be the least rebounding performance of the year.

A group of technology giants fell in sync, with Apple, Microsoft, and Google falling by more than 2%.

Mete's decline reached 3%, Nvidia fell by nearly 6%, and Tesla's decline reached 6.3%.

At the same time, Chinese concept stocks also suffered a wave of declines.

During the day yesterday, during the Asian trading session, the Hong Kong stock market had already started to fall, especially the Hang Seng Technology Index, which fell by more than 4.8% by the time of the close.

Last night, Chinese concept stocks in the US stock market continued to fall, with Tencent's decline reaching 6.7%, NIO fell by 5.4%, and XPeng fell by 6%.

Other stocks that fell include Alibaba and JD.com, with declines of more than 6%.

It seems that at least after the Fed's meeting, the US stock market can stabilize.

Of course, it is also possible that hawkish rhetoric after the meeting will lead to a larger decline.

The US economy is gradually declining, and China's economy is recovering strongly.

The completely different fundamentals of the two countries' economies are likely to lead to a huge change in the strength comparison of the two countries' capital markets.

Perhaps soon China will surpass the US and become the number one in the global market.

As of the end of last year, although the New York Stock Exchange and NASDAQ in the US still ranked first and second in the world's stock exchanges, the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Hong Kong Stock Exchange had monopolized the 3rd to 5th places.

Moreover, it is very obvious that several Chinese exchanges have been making continuous progress over the years.

The Shanghai Stock Exchange entered the top 10 for the first time in 2007 and climbed to 3rd place last year.

After entering the top 10 in 2014, the Shenzhen Stock Exchange climbed to 4th place last year.

And after continuously improving trading and listing rules, the Hong Kong Stock Exchange has attracted more and more Chinese enterprises to go public, including many Chinese concept stocks that were previously listed in the US to return to the Hong Kong Stock Exchange, and the Hong Kong Stock Exchange is now stable at 5th place.

China also has a newly launched Beijing Stock Exchange.

Therefore, we can fully predict that in the near future, the US will give up the status of the global financial hegemon.