U.S. Stock Market Ends Lower, NVIDIA Records Historic High

The U.S. stock market closed lower on Tuesday. The rise in U.S. Treasury yields, with the 10-year yield surpassing 4%, dominated market discussions.

Investors are assessing earnings reports from major banks such as Goldman Sachs and Morgan Stanley.The New York State Manufacturing Index for January fell significantly below expectations, indicating a contraction in the manufacturing sector.

Federal Reserve official Waller suggested that the pace of interest rate cuts might be slower than the market anticipates.

On Tuesday, U.S. Treasury yields rose, with the 10-year yield increasing by 9.3 basis points to 4.043%.

The 2-year yield rose by 6.9 basis points to 4.207%, and the 30-year yield rose by 3.6 basis points to 4.234%.

The focus remains on earnings season, with several banks continuing to release their reports.

Investors are particularly interested in insights into consumer health and further clues regarding credit card payments and delinquency data.

Michael Wilson noted, “This downward revision sets a lower bar for this earnings season, which could lead to earnings per share exceeding expectations once again.”

U.S. Stock Market

Fundamental Analysis:

Most major tech stocks declined, with Netflix dropping over 2%, and Meta and Apple falling over 1%.

However, NVIDIA defied the trend, rising over 3% to achieve a historic high.

Precious metals, industrial materials, and energy sectors led the declines, with Plug Power plummeting over 11%, and First Solar and Alcoa dropping over 7%.

In contrast, semiconductor and robotics sectors performed well, with AMD rising over 8%, and Kornit Digital and Micron Technology seeing gains.

Popular Chinese stocks experienced widespread declines, causing the Nasdaq Golden Dragon China Index to fall by 3.81%.

Notable drops included XPeng Motors and NIO, both down over 9%, and iQIYI down over 6%. Other major tech players, including JD.com, Tencent, and Baidu, also recorded losses.

Technical Analysis:   

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

Market Trends:

  • Dow Jones fell by 231.86 points, a 0.62% decrease, closing at 37,361.12 points.
  • Nasdaq dropped by 28.41 points, a 0.19% decrease, closing at 14,944.35 points.
  • S&P 500 Index declined by 17.85 points, a 0.37% decrease, closing at 44,765.98 points.

Hong Kong Stock Market

Fundamental Analysis:

All three major Hong Kong indices experienced significant declines.

Tech stocks collectively suffered, with Meituan falling over 5%, and JD.com and Xiaomi both dropping over 4%.

Tencent, Alibaba, and Kuaishou saw losses of nearly 3%. Automotive stocks witnessed a collective slump, with NIO falling over 9% and XPeng down nearly 9%.

Real estate stocks were among the top decliners, with China Jinmao and China Overseas Land & Investment both dropping over 7%.

Automotive stocks collectively plunged, with NIO down over 9%, and XPeng down over 8%.

In response to Tesla’s price cuts on various models, which included the Model 3 Refresh Edition priced at CNY 245,900, the Model Y Long Range Refresh Edition at CNY 299,900, and the Model Y at CNY 258,900, Daiwa commented that Tesla’s price reduction would have a negative impact on the overall atmosphere of the Chinese auto industry.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell by 2.81%, closing at 15,419.68 points.
  • Hang Seng Tech Index (HSTECH) dropped by 3.87%, closing at 3,197.25 points.
  • Hang Seng China Enterprises Index (HSCEI.) declined by 3.00%, closing at 5,183.25 points.

FTSE China A50 Index

Fundamental Analysis:

All three major A-share indices opened lower, experiencing initial market fluctuations and subsequent rebounds.

The Shanghai Composite Index and ChiNext Index both briefly dropped over 1% in the morning.

Notable sectors with strong performance included household appliances, diversified finance, textiles and clothing, jewelry, and railways.

On the downside, tourism and hotel, photovoltaic equipment, precious metals, commercial retail, and energy metal sectors faced significant declines.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) dropped by 0.64%, closing at 2,875.6 points.
  • Shenzhen Component Index (SZCOMP) fell by 0.89%, closing at 8,912.18 points.
  • ChiNext Index (CHINEXT) dropped by 1.21%, closing at 1,730.99 points
  • SSE STAR Market 50 Index (SSE50) declined by 1.08%, closing at 769 points.

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