Dow And S&P Indices Reach New Highs; Tesla Stock Falls Over 12%

The U.S. stock market closed higher on Thursday, with both the Dow Jones Industrial Average (DJI) and the S&P 500 reaching new historical highs.

Investors continue to closely monitor earnings reports, especially from companies like Tesla.

The U.S. fourth-quarter GDP data indicates robust economic growth and decreasing inflation, adding to market expectations of a Federal Reserve interest rate cut starting in March.

Investors are paying close attention to GDP data to gauge the timing of the Fed’s interest rate cuts this year. Better-than-expected GDP data might delay the timing of accommodative monetary policy.

Bart Melek, Head of Commodity Strategy at TD Securities, noted that the GDP data suggests, “The economy is running much hotter than expected, but at the same time, we are facing a situation where inflation is decreasing.”

U.S. Stock Market

Fundamental Analysis:

The U.S. stock market closed higher on Thursday, with both the Dow Jones Industrial Average (DJI) and the S&P 500 reaching new historical highs.

Investors continue to closely monitor earnings reports, especially from companies like Tesla.

The U.S. fourth-quarter GDP data indicates robust economic growth and decreasing inflation, adding to market expectations of a Federal Reserve interest rate cut starting in March.

Investors are paying close attention to GDP data to gauge the timing of the Fed’s interest rate cuts this year. Better-than-expected GDP data might delay the timing of accommodative monetary policy.

Bart Melek, Head of Commodity Strategy at TD Securities, noted that the GDP data suggests, “The economy is running much hotter than expected, but at the same time, we are facing a situation where inflation is decreasing.”

Technical Analysis:   

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

Market Trends:

  • Dow Jones rose by 242.74 points, up 0.64%, closing at 38,049.13 points.
  • Nasdaq rose by 28.58 points, up 0.18%, closing at 15,510.50 points.
  • S&P 500 Index increased by 25.61 points, up 0.53%, closing at 4,894.16 points.

Hong Kong Stock Market

Fundamental Analysis:

In Hong Kong, all three major indices collectively declined.

In the tech sector, Lenovo dropped over 8%, while Xiaomi and Meituan fell over 3%, Alibaba nearly 3%, and Baidu nearly 2%.

Automotive stocks generally performed poorly, with XPeng Motors dropping nearly 4%.

The mobile industry chain sector collectively declined, with Qutoutiao falling over 6%.

Some pharmaceutical outsourcing concept stocks showed strength, with WuXi AppTec rising nearly 6%.

Alibaba fell nearly 3%, and reports indicated that the group, through its wholly-owned subsidiary Skybridge LLC, used 512.3 million Alibaba shares (equivalent to about 64 million ADRs) to sign prepaid forward contracts with financial institutions back in April 2020.

As of now, SoftBank has chosen to settle all prepaid forward contracts in physical form, relinquishing the right to retain Alibaba shares. Through this financial derivative tool, SoftBank has reduced its holdings in the majority of Alibaba’s stocks.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) dropped by 0.94%, closing at 16,059.99 points.
  • Hang Seng Tech Index (HSTECH) fell by 2.66%, closing at 3,222.60 points.
  • Hang Seng China Enterprises Index (HSCEI.) declined by 1.51%, closing at 5,386.25 points.

FTSE China A50 Index

Fundamental Analysis:

In the A-share market, the three major indices opened lower, with the Shanghai Composite Index initially rising before falling back below 2900 points.

The Shenzhen Component Index also experienced consolidation, while the ChiNext Index gradually weakened, with a decline of over 1%.

In terms of industry sectors, real estate services, real estate development, gaming, engineering consulting services, and cement building materials led the gains.

Semiconductor, photovoltaic equipment, electronic chemicals, consumer electronics, and professional services lagged behind in terms of performance.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) fell by 0.38%, closing at 2,895.14 points.
  • Shenzhen Component Index (SZCOMP) dropped by 0.77%, closing at 8,788.12 points.
  • ChiNext Index (CHINEXT) declined by 1.57%, closing at 1,693.78 points.
  • SSE STAR Market 50 Index (SSE50) dropped by 1.76%, closing at 752.34 points.

Forward-looking Statements   
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.    

Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.    

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.   

Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.

Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.

Disclaimer 
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own 

Share the Post:

Related Posts