S&P And Nasdaq Continue Five-Day Decline, Tesla Drops 3%

U.S. stocks closed mixed on Thursday, with the S&P 500 and Nasdaq experiencing their fifth consecutive trading day of declines.

This downturn came amidst labor market data early in the week that suggested continued tightness.

The President of the New York Federal Reserve expressed reluctance to cut interest rates soon and even suggested the possibility of a rate hike, while the President of JPMorgan predicted that the Fed might not cut rates at all this year.

New York Fed President John Williams stated on Thursday that the Federal Reserve is in no hurry to cut rates, and that economic data will dictate the timing. He even mentioned that there might be a possibility of a rate hike this year.

A key U.S. inflation indicator for March exceeded economists’ expectations for the third consecutive month, intensifying concerns that progress in cooling inflation might be stalling.

U.S. Stocks

Fundamental Analysis:

Most major tech stocks declined, with Tesla dropping over 3% to a new closing low for 2023, while Microsoft and Amazon each fell over 1%.

Netflix slightly dipped by 0.51%, despite its streaming subscriptions in the first quarter exceeding expectations. Meta, however, rose over 1%.

Chip stocks were among the hardest hit, with TSMC falling over 4%, NXP Semiconductors over 3%, ASML and ON Semiconductor over 2%, and Intel more than 1%.

Social media and airline stocks saw gains, with Snap up over 6%, United Airlines over 5%, and JetBlue over 4%.

Popular Chinese concept stocks mostly rose, with the Nasdaq Golden Dragon China Index up 0.99%.

Weibo rose over 3%, Tencent Music, NetEase, and NIO each over 2%, and Li Auto, Manbang, Baidu, JD.com over 1%.

Slight increases were seen in Futu Holdings, iQIYI, Bilibili, Pinduoduo, and Alibaba. XPeng Motors fell over 3%, and Vipshop more than 1%.

Technical Analysis: 

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

Market Trends:

  • Nasdaq fell by 81.87 points or 0.52%, closing at 15,601.50.
  • Dow rose by 22.07 points or 0.06%, to 37,775.38.
  • S&P 500 declined by 11.09 points or 0.22%, to 5,011.12.

Hong Kong Stock Market

Fundamental Analysis:

Today, the major indices in Hong Kong stocks initially dipped but later recovered.

Tech stocks mostly fell, with Xiaomi down over 4%, Meituan over 3%, Alibaba nearly 2%, and Baidu and JD.com over 1%.

Shipping stocks surged, with Orient Overseas skyrocketing to a record high since its IPO, and Pacific Basin Shipping up over 9%.

Spot gold and Brent crude oil prices sharply increased, and gold and oil stocks also rose against the trend, with PetroChina up over 2%.

Apple concept stocks were among the largest losers, with AAC Technologies leading the decline over 7%.

SaaS stocks collectively fell, with Weimob Group plunging over 18%.

Overnight, a large drop in Tesla dragged down other new energy vehicle stocks, with Li Auto and Leapmotor each falling over 7%.

Spot gold and Brent crude saw sharp increases, with gold and oil stocks rising against the trend.

Brent crude surpassed the $90 per barrel mark, and WTI crude topped $85 per barrel. Reports indicated that U.S. officials confirmed Israeli missile strikes on Iranian targets.

Technical Analysis: 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell 1.23%, closing at 16,184.02.
  • Hang Seng Tech Index (HSTECH) fell 2.60%, to 3,269.55.
  • Hang Seng China Enterprises Index (HSCEI.) fell 1.19%, to 5,734.72.

FTSE China A50 Index

Fundamental Analysis:

China’s three major A-share indices opened low in early trading, with the Shanghai Composite and Shenzhen Component indices briefly rallying before weakening again. The ChiNext Index experienced a unilateral sharp decline, falling over 2%.

Industries such as mining, fertilizers, aerospace, oil, shipping, and gas were among the top gainers, while photovoltaic equipment, education, semiconductors, consumer electronics, energy metals, and batteries were among the top losers.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) fell 0.4%, to 3,062.00.
  • Shenzhen Component Index (SZCOMP) fell 1.31%, to 9,254.38.
  • ChiNext Index (CHINEXT) fell 2.20%, to 1,748.22.
  • SSE Sci-Tech Innovation 50 Index fell 1.76%, to 732.54.

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