U.S. Stock Market Ends Lower, Led by Tech Sector

The U.S. stock market ended the week on a downward trend, with the technology sector leading the decline. Nvidia’s substantial drop weighed heavily on the Nasdaq index.

Mixed results in the February U.S. nonfarm payrolls report, coupled with a rise in the unemployment rate, reinforced market expectations of a June interest rate cut by the Federal Reserve.

According to the U.S. Department of Labor report released on Friday, nonfarm payrolls increased by 275,000 in February, but the unemployment rate rose to 3.9%. Economists surveyed by Dow Jones had expected an increase of 198,000 jobs and an unemployment rate of 3.7%.

John Brady, an analyst at RJO Brien, commented that the February nonfarm payrolls report provided “fairly complex data.” He added that due to weak revisions, “some details look quite weak,” and the softer wage data “favours the inflation outlook.”

U.S. Stock Market

Fundamental Analysis:

Most popular tech stocks saw declines, with Nvidia plunging over 5%, marking its largest single-day drop since May 2023. Intel fell by over 4%, while Tesla, AMD, and Meta dropped by over 1%. However, Apple bucked the trend and rose by over 1%.

The semiconductor and robotics sectors led the declines, with Arm dropping by over 6%, ASML by over 5%, and ASMI by nearly 5%. KLA, Qualcomm, and NXP Semiconductors fell by over 2%.

Most popular Chinese concept stocks saw mixed movements, with the Nasdaq Golden Dragon China Index rising by 0.71%, but accumulating a 3.71% decline for the week.

Manbang Group surged over 7%, Bilibili rose by 5%, and iQiyi gained over 4%. JD.com rose by over 3%, while Futu Holdings, Tencent Music, and Alibaba each gained over 1%.

Xiaopeng Motors, Nio, Baidu, Weibo, and NetEase saw slight gains. Pinduoduo fell by over 5%, while Vipshop Holdings dropped by over 1%, and Li Auto saw a slight decline.

Technical Analysis: 

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

Market Trends:

  • Nasdaq fell by 188.26 points, or 1.16%, to close at 16,085.11.
  • Dow Jones Industrial Average dropped by 68.66 points, or 0.18%, to close at 38,722.69.
  • S&P 500 index fell by 33.67 points, or 0.65%, to close at 5,123.69.

Hong Kong Stock Market

Fundamental Analysis:

All three major indices in the Hong Kong stock market saw gains.

In sectoral performance, tech-related stocks generally rose, with Bilibili surging by nearly 14%. JD.com and Meituan rose by over 5%, while Tencent, Xiaomi, and Alibaba gained over 2%.

Photovoltaic stocks showed strong momentum, with Flat Glass surging by over 9%. Metal mineral stocks led the gains, with Tianqi Lithium surging by over 8%.

Most automotive stocks rose, with Xiaopeng Motors gaining over 6%. However, some catering stocks saw significant declines, with Haidilao dropping by over 11%. Tsingtao Brewery rose by nearly 6%, leading the brewery stocks. Coal, heavy machinery, and power sectors performed poorly.

Bilibili surged by nearly 14%. In recent news, Bilibili disclosed its financial report for the fourth quarter and full year of 2023. Bilibili’s total revenue for 2023 reached 22.53 billion yuan, with total revenue for the fourth quarter reaching 6.35 billion yuan.

The gross profit margin continued to improve for the sixth consecutive quarter, reaching 26.1%. Adjusted net loss narrowed significantly by 58% year-on-year.

Technical Analysis: 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) rose by 1.28% to close at 16,562.98.
  • Hang Seng Tech Index (HSTECH) surged by 2.55% to close at 3,472.03.
  • Hang Seng China Enterprises Index (HSCEI.) increased by 1.44% to close at 5,738.35.

FTSE China A50 Index

Fundamental Analysis:

In early trading, all three major A-share indices experienced a collective rise, with the market initially edging up before undergoing slight oscillations and a minor dip.

However, later in the morning session, there was a rebound, accompanied by both the Shanghai Composite Index and the Shenzhen Component Index turning positive.

Regarding sector performance, there was a broad-based rebound in new energy-related stocks, particularly in lithium batteries and energy storage.

Notably, Ningde Times surged by over 13%, and nearly twenty stocks, including Seasun New Energy and Tinci Materials, hit the daily trading limit.

Sectors such as solid-state batteries, flying cars, and power equipment led the gains, while coal, oil and gas exploration, and CPO sectors experienced declines.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.21% to close at 3,052.28.
  • Shenzhen Component Index (SZCOMP) surged by 1.32% to close at 9,492.44.
  • ChiNext Index (CHINEXT) rose by 3.28% to close at 1,866.52.
  • SSE Sci-Tech Innovation 50 Index increased by 0.43% to close at 806.64.

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