U.S. Stock Market Sees Mixed Results As Dow Surges Over 520 Points To Yearly High

The U.S. stock market finished on Thursday with varied performances. The Dow Jones surged by 520 points, marking a fresh high for the year. All three major indices posted gains exceeding 8.7% in November.

October’s PCE index reflected anticipated inflation, while employment data indicated a cooling labor market.

Comments from Federal Reserve officials suppressed expectations for a rate cut.

Morgan Stanley’s Chief Global Equity Strategist, Dubravko Lakos-Bujas, mentioned that the S&P 500 index might face a decline by the end of 2024.

This anticipated fall is due to multiple factors: a global economic slowdown, shrinking household savings, and persistent geopolitical risks.

These risks include the potential impact of the U.S. national elections on policy fluctuations. The forecast suggests the index could reach around 4200 points, marking an approximate 8% decrease from its current level.

U.S. Stock Market

Fundamental Analysis:

Most large-cap tech stocks saw declines, with Nvidia falling over 2%, and Meta, Google, and Tesla dropping over 1%.

Top-performing sectors included space exploration, shipping, and metal processing, with Boeing surging over 3%, and GenCore Shipping Trade up over 2%. Virgin Galactic also rose by over 1%.

Conversely, sectors like robotics, blockchain, and semiconductor industries experienced declines. AMD, Coinbase dropped over 2%, while Tower Semiconductor, NVIDIA, and Broadcom dipped over 1%.

VinFast surged by over 11%, announcing plans to showcase its latest V9 electric vehicle at the 28th United Nations Climate Change Conference (COP28).

In popular Chinese concept stocks, the Nasdaq Golden Dragon China Index rose by 0.08%, accumulating a 3.72% increase in November.

Pinduoduo soared over 4%, surpassing a $190 billion market cap, again overtaking Alibaba. Tencent Music rose over 2%, while NIO gained over 1%.

Meanwhile, Weibo plummeted over 10% after announcing a $300 million convertible bond issuance. Bilibili dipped over 4%, while Li Auto and XPeng both fell over 3%. Vipshop Holdings and Futu Holdings also dropped over 1%.

Technical Analysis:   

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

Market Trends:

  • Dow increased by 520.47 points, marking a 1.47% rise, reaching 35,950.89 points.
  • Nasdaq dropped by 32.27 points, a 0.23% decrease, settling at 14,226.22 points.
  • S&P 500 Index rose by 17.22 points, a 0.38% increase, closing at 4,567.80 points.

Hong Kong Stock Market

The morning session witnessed declines in the three major indices, especially in large-cap tech stocks, with Meituan and Xiaomi dropping over 2%. Tencent, Baidu, Kuaishou, and Alibaba all showed negative trends.

Real estate stocks faced a collective correction, with China Evergrande dropping nearly 5%.

Auto stocks continued their downward trajectory, with XPeng, Evergrande Auto, and BYD Company all falling by over 5%.

Car sales data for November declined, with XPeng and BYD leading the slump in auto stocks.

Information from the China Passenger Car Market Information Joint Conference revealed a 17% year-on-year increase but a 12% month-on-month decrease in retail sales, totaling 1.389 million units from November 1st to 26th.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) dropped by 0.69%, closing at 16,925.85 points.
  • Hang Seng Tech Index (HSTECH) fell by 1.58%, closing at 3,838.08 points.
  • Hang Seng China Enterprises Index (HSCEI) rose by 1.01%, reaching 5,798.50 points.

FTSE China A50 Index

Fundamental Analysis:

On December 1st, the morning session saw slight downward openings for the three major indices.

However, the market later showed a weaker trend, with the SZSE Component Index falling nearly 1%.

Key stocks remained subdued, with the SSE 50 Index continuing its decline, dropping over 1% to mark a new low for the year.

Conversely, the CSI 50 Index extended its correction, dropping by over 2%.

Sector-wise, top performers included education, gaming, cultural media, internet services, and real estate services, while declines were seen in electromechanics, energy metals, shipbuilding, battery, and general equipment sectors.

Themes like short drama interactive games, AIGC concepts, Pinduoduo concepts, ChatGPT concepts, film and TV concepts, and virtual digital human concepts remained active.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) dropped by 0.32%, closing at 3,019.84 points.
  • Shenzhen Component Index (SZCOMP) fell by 0.81%, closing at 9,647.95 points.
  • ChiNext Index (CHINEXT) dropped by 0.76%, settling at 1,907.95 points.
  • SSE STAR Market 50 Index (SSE50) decreased by 0.84%, ending at 858.37 points.

Forward-looking Statements   
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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.   

Disclaimer 
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.

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