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.

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.

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 financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.

Share the Post:

Related Posts