U.S. Stocks End Mixed, Chinese Shares Decline

U.S. stocks closed mixed on Wednesday, with the Dow Jones Industrial Average marking its sixth consecutive day of gains, while the Nasdaq slightly declined and the S&P 500 remained nearly unchanged.

The market continued to focus on earnings reports and the Federal Reserve’s outlook on interest rates. Several Fed officials spoke, with the Boston Fed President suggesting that higher rates might be needed for an extended period to curb demand and reduce inflation.

According to FactSet, about 85% of S&P 500 companies have reported earnings for this quarter so far, with approximately 80% surpassing Wall Street expectations.

Boston Fed President Collins stated that achieving the 2% inflation target might take longer. She hinted that rates might need to stay at two-decade highs longer than previously expected to suppress demand and ease price pressures.

U.S. Stocks

Fundamental Analysis:

Major tech stocks showed mixed results. Intel fell over 2%, Tesla and Google both dropped over 1%, Amazon and Nvidia slightly declined, while Apple, Netflix, Microsoft, and Meta saw minor gains.

Popular Chinese stocks were mostly down, with the Nasdaq Golden Dragon China Index falling 1.63%.

XPeng Motors dropped over 6%, NIO over 5%, Li Auto over 4%, Weibo over 3%, and Futu Holdings and iQIYI over 2%.

Bilibili, Full Truck Alliance, and Alibaba fell over 1%, while Baidu, Tencent Music, JD.com, and NetEase saw minor declines. Vipshop and Pinduoduo rose over 1%.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

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

Market Trends:

  • Nasdaq fell by 29.80 points, a decline of 0.18%, closing at 16,302.76.
  • Dow increased by 172.13 points, up 0.44%, to 39,056.39.
  • S&P 500 slightly fell by 0.03 points, down by 0.13%, to 5,187.67.

Hong Kong Stock Market

Fundamental Analysis:

Hong Kong’s three major indices collectively strengthened.

In the market, tech stocks mostly rose, with Lenovo up over 6%, Meituan over 4%, and Tencent nearly 2%.

After Hangzhou fully lifted housing purchase restrictions, Shimao Group soared over 42%.

Apple-related concept stocks also rose, with BYD Electronic up over 6%, and shipping stocks like COSCO Shipping Holdings surged over 6%.

Semiconductor stocks like SMIC rose over 5%.

Additionally, sectors like pharmaceuticals, wind power, and other metal minerals showed significant gains.

Apple-related stocks were among the top gainers, with BYD Electronic up over 6%. Recently, Apple officially launched its new iPad Pro/Air tablets.

These new models went on sale on May 8th at 9 AM on domestic e-commerce platforms in China, and by the evening, pre-orders on a certain platform had reached 30,000.

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) rose by 1.23%, closing at 18,538.57.
  • Hang Seng Tech Index (HSTECH) increased by 1.92%, closing at 3,946.38.
  • Hang Seng China Enterprises Index (HSCEI.) was up 1.63%, closing at 6,561.93.

FTSE China A50 Index

A-share indices collectively rebounded in the morning session, with the ChiNext Index bouncing back up 1.85%.

Lithium battery concept stocks were strong, with Tianli Lithium Energy and Blue Ocean Huateng hitting the 20cm trading limit.

In the industry sector, the cobalt sector was high in the morning, with Hezong Technology hitting the 20cm trading limit.

The lithium battery sector continued to be strong, with Tianli Lithium Energy and Blue Ocean Huateng hitting the 20cm limit, Fengyuan Shares, and Keliyuan closing at the limit.

The cell immunotherapy concept was actively fluctuating, with Tailin Bio and Kaineng Health hitting the trading limit during the session.

The shipping concept collectively rose, with Phoenix Maritime and COSCO Shipping Development hitting the limit.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.91%, closing at 3,156.96.
  • Shenzhen Component Index (SZCOMP) was up 1.63%, closing at 9,795.60.
  • ChiNext Index (CHINEXT) increased by 1.85%, closing at 1,899.69.

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