U.S. Stocks Climb, Nasdaq Golden Dragon China Index Surges 6%

U.S. stocks closed higher on Thursday, with the Nasdaq and S&P 500 indexes rebounding after two consecutive days of declines.

The lower-than-expected initial jobless claims and the largest annual increase in labor costs in the first quarter drove optimism.

Investors continue to assess the Federal Reserve’s monetary policy outlook, eagerly awaiting further earnings reports and crucial labor market data.

The surge in U.S. stocks was catalyzed by a raft of first-quarter earnings reports. Qualcomm saw a significant rise of 9.7% after its earnings beat expectations and it projected strong revenue.

Conversely, DoorDash’s stock plummeted by 10.3% after its per-share loss exceeded Wall Street forecasts.

Eric Winograd, Director of Developed Market Economic Research at AllianceBernstein, commented on Federal Reserve Chairman Jerome Powell’s emphasis that the Fed’s next move is unlikely to be a rate hike.

“This should soothe the financial markets,” Winograd noted. However, traders remain most concerned about when the Fed will actually begin to cut rates, a question still without a definite answer.

U.S. Stocks

Fundamental Analysis:

Major tech stocks generally advanced, with Netflix, Nvidia, and Meta each rising over 3%, while Tesla, Microsoft, and Amazon each increased over 1%. Intel and Google posted modest gains; Apple slightly declined.

The semiconductor sector also moved upward, with Advanced Micro Devices and Applied Materials making substantial gains over 3%, and ARM and Micron Technology following closely.

In contrast, the Nasdaq Golden Dragon China Index saw an increase of 6%, driven by significant rises in major Chinese tech stocks.

XPeng Motors and Bilibili jumped over 15%, KE Holdings over 12%, and JD.com more than 11%. Li Auto almost reached a 10% increase, Baidu rose over 7%, and Nio, Alibaba, and Tencent Holdings ADR each advanced over 6%.

Technical Analysis: 

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

Market Trends:

  • Nasdaq rose by 235.48 points, a 1.51% increase, to close at 16,840.96.
  • Dow gained 322.37 points, up 0.85%, to finish at 38,225.66.
  • S&P 500 climbed 45.81 points, or 0.91%, ending the day at 5,064.30.

Hong Kong Stock Market

Fundamental Analysis:

Hong Kong’s three major indices started low and continued to decline.

Tech stocks led the downturn with Bilibili leading the drop among Hang Seng Tech components. NetEase, Kuaishou, and Meituan each fell around 4%, while Baidu, Alibaba, and JD.com declined over 2%.

In the pharmaceutical outsourcing sector, WuXi Biologics dropped more than 3%.

Contrary to the trend, oil stocks rallied as international oil prices rebounded, with PetroChina and Sinopec each rising over 1%.

Ahead of Apple’s new product launch, BYD Electronic and AAC Technologies saw gains exceeding 2%.

Gold stocks mostly rose, with China Gold International climbing over 3%.

On the commodities front, COMEX gold futures dropped 2.56% before the holiday but have since rebounded significantly.

From May 1, gold prices rose from a low of $2,285.20 to above $2,331, marking a recovery of $45.80.

Technical Analysis: 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell by 0.85% to close at 18,420.38.
  • Hang Seng Tech Index (HSTECH) dropped by 1.98% to 3,928.24.
  • Hang Seng China Enterprises Index (HSCEI.) declined by 0.84% to 6,517.27.

FTSE China A50 Index

The A-share indices opened lower but certain sectors showed strength.

New technology sectors like synthetic biology surged, with SynTheAll Pharmaceutical and Fujirebio hitting their trading limits, and new market entrants NewZbio and NewLand Biotech rising over 10%.

The civil explosives sector also performed well, with Gaozeng Minbao touching the daily limit.

Aerospace technologies and Anhui Conch Cement hit their trading limits, reflecting strong investor interest in infrastructure and tech advancements.

The biotech sector’s performance remained robust, with several stocks hitting or approaching their trading limits due to positive industry trends and investor enthusiasm.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) dropped 0.13% to 3,136.62 points.
  • Shenzhen Component Index (SZCOMP) fell 0.31% to 9,748.81 points.
  • ChiNext Index (CHINEXT) decreased by 0.31% to 1,889.31 points.
  • SSE Sci-Tech Innovation 50 Index had a mixed performance, adjusting by 1.12% to 768.95 points.

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