Nasdaq Posts 2.2% Gain, Nvidia Stock Hits All-Time High

The tech sector led the market surge in the U.S. stock market. Nvidia’s unveiling of new chips propelled its stock to reach unprecedented levels.

This week, the market is closely monitoring inflation data (CPI and PPI) to gauge the Federal Reserve’s future monetary policy.

Several major banks are set to announce their financial reports starting this Friday, marking the onset of the latest earnings season.

Nvidia soared by 6.4%, reaching a record high. At the Consumer Electronics Show (CES) on Monday, Nvidia announced three new graphics cards aimed at consumers, enhancing AI utilization for gamers, designers, and PC users.

Chris Verrone, Strategas’ Macro and Technical Research Head, commented on the market sentiment, suggesting a potential need for adjustment or correction in the first quarter to address what might be excessive enthusiasm.

U.S. Stock Market

Fundamental Analysis:

Large tech stocks witnessed widespread gains, with semiconductors and software applications leading the charge.

Nvidia surged over 6%, hitting an all-time high. The company announced three new consumer-oriented graphics cards at CES, facilitating better AI utilization for gamers, designers, and PC users.

AMD also rose by over 5%, while other tech giants like Qualcomm, Intel, and NXP Semiconductors surged over 3%. Apple, Google, Amazon, and Broadcom saw gains exceeding 2%.

Conversely, oil and aviation stocks declined, with TotalEnergies, Imperial Oil, and Suncor Energy dropping over 2%. Boeing’s stock plummeted by over 8% due to the Alaska Airlines 737 MAX 9 incident.

Popular Chinese stocks experienced a widespread downturn, with the Nasdaq Golden Dragon China Index dropping by 1.47%.

iQIYI, XPeng Motors, JD.com, Weibo, Vipshop, NIO, NetEase, Tencent Music, Futu Holdings, among others, witnessed declines ranging from 1% to 3%. Pinduoduo saw marginal gains.

Technical Analysis:   

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

Market Trends:

  • Dow Jones rose by 216.90 points, an increase of 0.58%, closing at 37,683.01 points.
  • Nasdaq surged by 319.70 points, marking a 2.20% increase, closing at 14,843.77 points.
  • S&P 500 Index climbed 66.30 points, a rise of 1.41%, closing at 4,763.54 points.

Hong Kong Stock Market

Fundamental Analysis:

The three major indices in Hong Kong exhibited divergent trends.

Core tech stocks mostly declined, with Meituan falling over 3%, and JD.com and Kuaishou dropping by nearly 3% and approximately 1% respectively. However, Lenovo Group defied the trend, rising by over 5%.

Automotive stocks witnessed general upticks, with Leapmotor surging over 3%.

Tourism stocks led gains, as China Duty Free soared by over 5%.

The biopharmaceutical sector collectively rose, with CanSino Biologics surging over 7%.

SaaS, building materials and cement, and education sectors experienced prominent declines.

The biopharmaceutical sector collectively rose, led by a 7% surge in CanSino Biologics.

In recent announcements from January 1st to 7th, the domestic pharmaceutical industry unveiled nine cross-border collaborations involving renowned multinational pharmaceutical companies like Novartis, AstraZeneca, Bristol Myers Squibb, Roche, and Bayer.

These collaborations span multiple forms such as product authorization, investments, and acquisitions, encompassing popular varieties like small nucleic acid drugs, antibody-drug conjugates (ADC), and CAR-T therapy.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) increased by 0.32%, closing at 16,275.84 points.
  • Hang Seng Tech Index (HSTECH) dropped by 0.24%, closing at 3,476.24 points.
  • Hang Seng China Enterprises Index (HSCEI.) rose by 0.04%, closing at 5,483.21 points.

FTSE China A50 Index

Fundamental Analysis:

The A-share indices displayed mixed movements at the opening bell, initially fluctuating upwards, with the Shanghai Composite Index briefly surpassing 2900 points.

Both the Shenzhen Component Index and the Growth Enterprise Index surged by over 1% during midday, retracting slightly in the first hour before noon.

In terms of industry sectors, tourism and hotels, aviation and airports, coal, commercial retail, photovoltaic equipment, and construction materials saw notable gains.

On the other hand, software development, shipbuilding, electronic chemicals, consumer electronics, and optical electronics witnessed significant declines.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.34%, closing at 2,897.37 points.
  • Shenzhen Component Index (SZCOMP) surged by 0.36%, closing at 8,979.59 points.
  • ChiNext Index (CHINEXT) climbed by 0.48%, closing at 1,752.75 points.
  • SSE STAR Market 50 Index (SSE50) increased by 0.27%, closing at 786.53 points.

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