The Federal Reserve's actions of draining liquidity from the market are becoming more significant, which will not only cause a shortage of funds in the U.S. financial system but also lead to a global dollar tide.

Last night, the Fed once again conducted overnight reverse repo operations, withdrawing $1.989 trillion from the market.

Under the combined influence of multiple factors, the three major U.S. stock indices fell in sync in the early morning, with the Dow Jones Industrial Average experiencing a maximum drop of 400 points.

European stock markets also saw a decline across the board.

Previously, U.S. stocks had experienced a significant rebound, especially the Nasdaq index, which has risen by more than 30% since the beginning of the year.

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However, an increasing number of analysts believe that the rebound in U.S. stocks during this period is a false prosperity.

Unlike in the past, the U.S. stock market is not experiencing a general rise; among the three major indices, it is mainly the Nasdaq that is rising.

If you exclude a few tech giants from the S&P 500, the entire stock market has not only failed to rise but has actually fallen.

This means that amidst the wild surge of companies like Nvidia and Tesla, capital is being covertly withdrawn from other listed companies.

Looking at the U.S. stock market, many Wall Street institutions are currently selling U.S. stocks.

The total amount of stocks sold in May reached a triple-digit figure, compared to $6.9 billion in the same period last year.

In May, U.S. tech stocks also suffered a significant outflow of funds.

This trend has become more apparent in June.

There is another view that suggests that, based on the current trend, future trading volumes are likely to decrease further.

According to surveys, in the fund stock market, tech stocks are the most popular compared to other stocks.

In May, U.S. investors' holdings of tech stocks continued to rise, but data from June shows that the peak of tech stocks is beginning to recede.

Data indicates that U.S. tech stocks have experienced an outflow of funds for eight consecutive weeks, amounting to $1.2 billion.

The driving force behind the rise in U.S. stocks this year has been just a few tech giants; once these companies start to fall, short sellers on Wall Street could reap substantial profits.

Moreover, the strength of the U.S. financial market's liquidity withdrawal is increasing.

Currently, the U.S. Treasury's funds are in short supply and have issued ultra-high interest rate short-term bonds in batches to the market.

At the same time, the Fed is also pledging assets to banks and "borrowing" from banks, using this method to recover liquidity from the market.

Last night, the scale of overnight reverse repo operations reached $1.989 trillion.

This is, of course, related to the end of the quarter, but compared to the end of June in previous years, this year's strength is significantly stronger.

Moreover, the interest rates in the reverse repo market are also very high, already exceeding 5%.

The Fed's approach has a greater impact on market liquidity than ever before.

Compared to the Nasdaq index, the Dow Jones index is more reflective of the real economy.

This index fell more than 400 points from last Friday's closing position to the lowest point in the early morning, and the increase since the beginning of the year has narrowed to only 2.7%.

At the same time, stock markets in European countries have also declined across the board.

In addition, according to the household net worth report released by the Fed, the wealth gap in the U.S. is now more severe.

The 80/20 rule is very evident in the U.S. economic contribution.

The top 20% of the rich provide 80% of the economic contribution.

However, among the other 80% of Americans, there are many who rely on government assistance for their livelihood.

Class stratification in the U.S. is very obvious, with the middle class under significant pressure because most domestic taxes are paid by the middle class through actual labor.

The rich at the top can earn money through more channels due to their power and wealth, while the poor at the bottom rely on government assistance and many have started to live a carefree life.

Since the main driver of the U.S. economy is consumption, and from the data above, we can clearly sense that U.S. consumer power will continue to decline in the coming period.

Without the support of consumption, both the U.S. economy and the U.S. stock market face a pessimistic outlook.