U.S. Markets Set Eighth Record High For The Year

The U.S. stock market closed higher on Thursday, marking the eighth record high for the Dow Jones Industrial Average (DJIA) this year.

Market focus continues on the Federal Reserve’s interest rate cut prospects and the earnings reports of major tech companies. While the Fed kept interest rates unchanged on Wednesday, it hinted at a lower likelihood of a rate cut in March. Attention now turns to Friday’s non-farm payroll data.

Federal Reserve Chair Jerome Powell, in a Wednesday press conference, indicated that a rate cut in March is unlikely, suggesting that Fed officials are not in a rush to lower rates. According to the CME Group’s FedWatch Tool, traders currently predict a 96% probability of a rate cut in May.

SoFi Chief Investment Strategist Liz Young commented on Powell’s message, stating, “I think what he’s telling us is, ‘I’m saying it plain as day, but you’re not listening.’”

U.S. Stock Market

Fundamental Analysis:

Most popular Chinese stocks witnessed gains, with the Nasdaq Golden Dragon China Index rising over 1%. Ideal Auto and Weibo surged over 5%, while Netease, Vipshop, and Bilibili gained over 3%. Manbang rose over 2%, and XPeng and NIO increased over 1%.

Large-cap tech stocks experienced widespread gains, with Amazon, NVIDIA, and ASML rising over 2%. Meta, Apple, and Microsoft gained over 1%. Tesla, Google, and Netflix saw slight increases. Ferrari soared over 12%, reaching a historic high and surpassing a $700 billion market cap, surpassing BMW.

Technical Analysis:   

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

Market Trends:

  • Dow rose by 369.54 points (0.97%) to 38,519.84.
  • Nasdaq increased by 197.63 points (1.30%) to 15,361.64.
  • S&P 500 rose by 60.54 points (1.25%) to 4,906.19.

Hong Kong Stock Market

Fundamental Analysis:

All three major Hong Kong indices opened higher but faced declines later in the day.

In the tech sector, many stocks reversed gains, with Kuaishou falling over 1%, and JD.com, Meituan, and Alibaba following suit. Gaming stocks collectively rose, with Tencent gaining over 3%.

Real estate stocks led the gains, with Yuexiu Property rising over 4%. Automotive companies disclosed January delivery data, with Geely rising over 6% and NIO gaining over 5%.

Gold-related stocks surged, with Zhaojin Mining leading with a 6% increase. All three major oil companies rose, with PetroChina gaining nearly 3%.

Significant gains were observed in the sports equipment, machinery, gaming, and coal sectors.

Automotive companies disclosed January delivery data, with Geely rising over 6% and NIO gaining over 5%. Data showed that BYD sold 201,493 vehicles in January, ranking first, while XPeng’s new M71 achieved 31,253 deliveries, setting a new monthly record and crossing the 30,000 mark for the first time.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index increased by 0.59% to 15,658.2.
  • Hang Seng Tech Index rose by 0.44% to 3,079.30.
  • State-owned Enterprises Index increased by 0.79% to 5,264.59.

FTSE China A50 Index

Fundamental Analysis:

In the A-share market, all three major indices opened with mixed movements. Initially, the market saw a slight uptick, followed by a weakening trend. The ChiNext Index and the Shenzhen Component Index both experienced expanding declines, reaching 1%. The ChiNext Index continued to set new adjustment lows.

Among sectoral performances, only tourism hotels, banks, airports, precious metals, and real estate development saw modest gains. Sectors with relatively larger declines included photovoltaic equipment, diversified finance, electronic components, semiconductors, and software development.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index fell by 0.72% to 2750.72.
  • Shenzhen Component Index declined by 1.49% to 8117.51.
  • ChiNext Index dropped by 1.96% to 1557.88.
  • Science and Technology Innovation 50 Index fell by 2.05% to 675.87.

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