U.S. Stocks Decline, Nasdaq Falls Nearly 1%, AMD Drop Over 20%

U.S. stocks closed lower on Friday, with all three major indices posting weekly losses.

The U.S. January Producer Price Index (PPI) exceeded expectations, confirming alongside CPI data that the Federal Reserve’s battle against inflation is far from over, prompting the market to further reduce bets on an early Fed rate cut.

A Fed official emphasized the need for the Fed to wait for more data before cutting rates.

Three days before the PPI report was released, the higher-than-expected January Consumer Price Index (CPI) in the U.S. raised concerns about the Fed possibly delaying plans to start cutting rates further.

U.S. Treasuries were sold off, with bond yields reaching their highest levels since at least December of last year.

Thomas Barkin, President of the Richmond Fed, stated on Friday that the stronger-than-expected inflation data released earlier in the week highlighted why policymakers want to see more data before cutting rates.

U.S. Stocks

Fundamental Analysis:

Popular Chinese concept stocks showed mixed performance, with the Nasdaq Golden Dragon China Index rising by 0.56%.

XPeng Motors and Li Auto surged over 3%, while JD.com and Bilibili rose by over 2%. TAL Education plunged over 3%, while New Oriental and Gaotu fell by over 1%.

Most large-cap tech stocks declined, with Meta dropping over 2%, and Google and Netflix falling by over 1%. Apple, Microsoft, Amazon, and NVIDIA closed slightly lower.

In the semiconductor sector, Micron Technology and Qualcomm fell by over 2%, while Broadcom, AMD, and Intel fell by over 1%. AMD plummeted nearly 20%, breaching both the $1000 and $900 marks, ending a nine-day consecutive rally.

Technical Analysis:   

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

Market Trends:

  • Dow Jones Industrial Average fell by 145.13 points, or 0.37%, to close at 38,627.99.
  • Nasdaq Composite fell by 130.52 points, or 0.82%, to close at 15,775.65.
  • S&P 500 Index fell by 24.16 points, or 0.48%, to close at 5,005.57.

Hong Kong Stock Market

Fundamental Analysis:

The three major indices in the Hong Kong stock market fluctuated. Among them, tech stocks led the market gains, with JD.com falling nearly 5%, while Xiaomi and Baidu fell by over 3%, and Tencent dropped by over 2%.

Internet healthcare stocks plunged collectively, with JD Health falling over 6%. Sports goods stocks saw significant declines, with Li Ning falling nearly 9%.

Tourism stocks remained weak, with China Duty Free falling over 10%. Real estate stocks fell across the board, with Longfor Group dropping by over 6%.

Coal stocks rose against the trend, with Yanzhou Coal Mining rising nearly 7%.

Oil stocks surged collectively, with CNOOC rising nearly 4%, and PetroChina up by over 3%.

Real estate stocks fell across the board, with Longfor Group dropping by over 6%.

According to a report by UBS citing research from Beike, during the eight days of the Lunar New Year holiday in 50 mainland cities, second-hand housing transactions increased by 70% compared to last year’s Lunar New Year holiday. However, data from E-House showed that from February 2 to 15, new housing transactions in 44 mainland cities decreased by 40% year-on-year.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell by 1.00% to close at 16,176.15.
  • Hang Seng Tech Index (HSTECH) fell by 2.71% to close at 3,252.05.
  • Hang Seng China Enterprises Index (HSCEI.) fell by 1.19% to close at 5,492.80.

FTSE China A50 Index

Fundamental Analysis:

On the first trading day of the Year of the Dragon, the three major A-share indices opened higher, and the market fluctuated upward after the opening.

The Shanghai Composite Index once rose by more than 1% and reached 2900 points, and the Shenzhen Component Index and the Growth Enterprise Index also once expanded to 1%. In the morning, the index fell slightly, narrowing its gains.

In the realm of industry sectors, sectors such as education, cultural media, internet services, computer equipment, gaming, communication services, and software development saw notable gains.

Conversely, sectors including securities, energy metals, precious metals, and negative electrode materials experienced declines.

Sectors like insurance, photovoltaic equipment, wind power equipment, and pharmaceutical commerce showed relatively modest gains.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.9% to close at 2,891.8.
  • Shenzhen Component Index (SZCOMP) rose by 0.14% to close at 8,832.97.
  • ChiNext Index (CHINEXT) rose by 0.11% to close at 1,728.7.
  • SSE STAR Market 50 Index (SSE50) rose by 0.42% to close at 754.67.

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