U.S. Stock Market Shows Mixed Performance; Nasdaq Hits New High

The U.S. stock market closed with mixed results on Friday, with the three major indices posting varied movements for the week.

The Nasdaq reached yet another historical peak. However, the Dow Jones Industrial Average fell by over 300 points, with Nike shares plummeting by 7% at the close.

Investors remained focused on the inflationary pressures in the United States and the prospects of Federal Reserve interest rate cuts.

Following the announcement of the Federal Reserve’s interest rate decision, traders, as indicated by the CME FedWatch tool, raised the probability of a rate cut in June to 71%, up from 60% before the rate decision.

Art Hogan, Chief Market Strategist at B.Riley Wealth, suggested that a significant source of market optimism could be attributed to the Federal Open Market Committee (FOMC) maintaining its projection of three interest rate cuts this year, despite several robust inflation reports.

U.S. Stock Market

Fundamental Analysis:

In the U.S. stock market, most large-cap technology stocks advanced. Google surged by over 2%, while Apple, Netflix, Amazon, and Meta posted slight gains.

However, Tesla saw a decline of over 1%, and Microsoft experienced a minor dip.

In the semiconductor and server sectors, Nvidia soared by over 3%, setting a new closing record.

Meanwhile, stocks like TSMC, AMD, Broadcom, ARM, Micron Technology, and Advanced Micro Devices followed suit.

Conversely, United Microelectronics Corporation declined by over 2%, with ASML and Applied Materials dropping by over 1%, and Qualcomm and GlobalFoundries also experiencing declines.

In the popular Chinese concept stock category, there was a general decline, with the Nasdaq Golden Dragon China Index falling by 1.80%.

Kingson Cloud dropped by over 9%, while Xpeng Motors plummeted by over 7%. Vipshop Holdings fell by 6%, and Weibo dropped by over 5%.

Tencent Music, Ideal Auto, Bilibili, Futu Holdings, JD.com, and NIO all declined by over 2%, while NetEase experienced a decline of over 1%.

iQiyi saw a slight decrease, while Pinduoduo and Baidu made marginal gains.

Technical Analysis: 

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

Market Trends:

  • Dow Jones fell by 305.47 points, representing a decrease of 0.77%, closing at 39,475.90 points.
  • Nasdaq rose by 26.98 points, marking a gain of 0.16%, closing at 16,428.82 points.
  • S&P 500 index fell by 7.35 points, indicating a decline of 0.14%, closing at 5,234.18 points.

Hong Kong Stock Market

Fundamental Analysis:

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

Notable performances included a significant 8% surge in Meituan’s shares after its earnings report, and a rapid 6% rise in Baidu’s shares.

Stocks in the Yamanashi series surged collectively, with WuXi AppTec rising by over 8%.

Real estate stocks witnessed collective gains, led by Longfor Group, which rose by over 7%.

Logistics stocks showed individual strength, with China Merchants Shipping surging by over 10%.

Conversely, Apple concept stocks moved against the trend, with BYD Electronic dropping by over 3%.

Chinese brokerage stocks declined across the board, with CITIC Securities falling by nearly 2%.

Beijing Automotive Group led the decline in the automotive sector, plummeting by over 13%.

The decline in Apple concept stocks was due to reports indicating the termination of a project to develop a smartwatch display, following the decision to abandon the production of cars.

Technical Analysis: 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) rose by 0.48%, closing at 16,578.99 points.
  • Hang Seng Tech Index (HSTECH) rose by 0.27%, closing at 3,465.18 points.
  • Hang Seng China Enterprises Index (HSCEI.) rose by 0.48%, closing at 5,798.65 points.

FTSE China A50 Index

Fundamental Analysis:

A-shares opened lower, with the market experiencing initial volatility and downward pressure.

However, the indices gradually stabilized after an hour of trading, with the Shanghai Composite Index and the Shenzhen Component Index turning positive. The ChiNext Index also narrowed its losses.

Notable sectors that performed well included the mining industry, real estate development, precious metals, the fertilizer industry, papermaking and printing, and glass fiber.

Sectors that experienced declines included cultural media, education, semiconductors, securities, and electronic components.

Active thematic sectors included photolithography, Xiaomi cars, quantum communication, oil and gas equipment, and services.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.44%, closing at 3,061.36 points.
  • Shenzhen Component Index (SZCOMP) rose by 0.06%, closing at 9,571.27 points.
  • ChiNext Index (CHINEXT) fell by 0.37%, closing at 1,862.31 points.
  • SSE Sci-Tech Innovation 50 Index rose by 0.04%, closing at 794.51 points.

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