Dow Achieves Fourth Consecutive Highs As Fed Decision Looms

On Tuesday, the U.S. stock market exhibited a mixed performance, with the Dow Jones Industrial Average (DJIA) marking its seventh closing high of the year.

Investors are closely monitoring the performance of major tech companies such as Microsoft and Google’s parent company, Alphabet.

The Federal Reserve commenced its monetary policy meeting on Tuesday, and the results will be announced on Wednesday.

Tuesday brought a mixed bag of corporate earnings reports for U.S. stocks.

General Motors saw a significant increase in stock prices following better-than-expected earnings. Cybersecurity firm F5 exceeded expectations in its financial report.

Electronics manufacturer Sanmina reported robust earnings per share and provided positive guidance for the quarter. JetBlue Airways’ performance also surpassed expectations.

Globalt Investments Senior Portfolio Manager Keith Buchanan noted, “This earnings season, the information conveyed by companies may not be uniformly consistent. Not all ships can ride the waves. So far, we have seen clear winners and losers in this earnings season.”

U.S. Stock Market

Fundamental Analysis:

Most Chinese stocks experienced declines, with the Nasdaq Golden Dragon China Index dropping by 2.26%.

Notable decliners include NIO (down over 5%), Bilibili (down over 4%), Pinduoduo, Manbang,, and XPeng (all down over 3%).

iQiyi, Baidu, Weibo, Futu Holdings, NetEase, and Alibaba saw declines over 1%, while other companies like Li Auto, Vipshop, and Tencent Music saw modest decreases.

Many major tech stocks declined, with Netflix dropping over 2%. Google, Amazon, and Apple fell over 1%, while Meta and Microsoft experienced slight declines. Tesla and NVIDIA saw marginal increases, with NVIDIA reaching historic highs.

Chip stocks collectively trended lower, with AMD and Micron Technology dropping over 3%, and Intel, Qualcomm, ASML, and NXP Semiconductors falling over 1%.

Bank stocks led the gains, with Bank of America rising over 3%, JPMorgan Chase over 2%, and Wells Fargo and Barclays up over 1%.

Technical Analysis:   

(S&P 500 Index, 1-day chart)

Market Trends:

  • Dow Jones rose by 133.86 points (0.35%) to 38,467.31.
  • Nasdaq declined by 118.15 points (0.76%) to 15,509.90.
  • S&P 500 Index fell by 2.96 points (0.06%) to 4,924.97.

Hong Kong Stock Market

Fundamental Analysis:

All three major Hong Kong indices opened lower.

Tech stocks, including Xiaomi, Meituan,, and Alibaba, experienced declines of over 2%.

The automotive sector faced widespread declines, with XPeng falling over 7% and NIO dropping nearly 6%. Apple-related stocks took a hit, with Sunny Optical Technology falling nearly 10%.

Sportswear stocks, including Anta Sports, declined nearly 5%. Coal stocks were active, with China Shenhua rising over 2%.

Specific stocks such as Evergrande Property rose over 8%, while Dongfang Selection surged over 5%.

Stocks related to Apple, such as Sunny Optical Technology, witnessed significant declines of nearly 10%.

On the news front, Sunny Optical Technology issued a profit warning, forecasting shareholder net profit to decrease by approximately 50% to 55% to around 10.84 billion to 12.04 billion in 2023 compared to the previous year.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) declined by 1.01% to 15,444.24.
  • Hang Seng Tech Index (HSTECH) fell by 2.05% to 3,035.30.
  • Hang Seng China Enterprises Index (HSCEI.) dropped by 1.05% to 5,220.06.

FTSE China A50 Index

Fundamental Analysis:

In the A-share market, all three major indices opened with mixed movements.

Initially, the market saw an upward trend, with the ChiNext Index briefly rising by over 1%.

However, the indices subsequently retreated, with the Shanghai Composite Index falling over 1% below the 2800-point mark.

The Shenzhen Component Index dropped nearly 2%, and the ChiNext Index turned negative.

Among sectoral performances, only insurance, cultural media, coal, securities, diversified finance, and banking showed gains.

Sectors with relatively smaller declines included automotive services, electric power, and non-metallic materials.

Tourism hotels, energy metals, decoration and design, internet services, and commercial department stores faced more significant declines.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) fell by 0.38% to 2819.91.
  • Shenzhen Component Index (SZCOMP) declined by 0.44% to 8339.22.
  • ChiNext Index (CHINEXT) increased by 0.85% to 1597.21.
  • SSE STAR Market 50 Index (SSE50) rose by 0.05% to 698.2.

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