U.S. Stocks End Mixed, Most Chinese Stocks Retreat

U.S. stocks closed mixed on Tuesday. The Dow Jones Industrial Average rose for the fifth consecutive day, marking its longest winning streak since December.

Meanwhile, U.S. Treasury yields fell. Investors continued to monitor the Federal Reserve’s monetary policy outlook and the latest earnings reports from companies like Disney. Apple unveiled its first AI product.

The market is still assessing the likelihood of the Federal Reserve cutting interest rates in 2024. Last Friday’s April jobs report showed fewer jobs added than expected, a rise in the unemployment rate, and slowing wage growth.

These indicators eased concerns about an overheated economy and boosted optimism about potential Fed rate cuts.

Neel Kashkari, President of the Minneapolis Federal Reserve, stated on Tuesday that the Fed might keep interest rates at current levels for “a longer period” until officials are confident that inflation is moving towards their target.

U.S. Stocks

Fundamental Analysis:

Major tech stocks saw mixed results. Tesla fell over 3%, Nvidia and Microsoft dropped over 1%, and Intel slightly declined.

On the other hand, GlobalFoundries surged over 7%, Google and Netflix rose over 1%, and Amazon, Meta, and Apple modestly increased. Amazon briefly reached an all-time high during the session.

The aviation and energy sectors were among the biggest losers, with Norwegian Cruise Line and Carnival Cruise Lines dropping over 3%, and Plug Power, American Airlines, and United Airlines falling over 2%.

Most Chinese concept stocks declined, with the Nasdaq Golden Dragon China Index down 2.12%.

XPeng Motors and Bilibili fell over 6%, NetEase dropped over 4%, and Li Auto, Futu Holdings, Vipshop, and Nio lost over 3%.

Alibaba, Baidu, and iQIYI declined over 2%, while JD.com, Tencent Music, and Weibo fell over 1%. Pinduoduo slightly decreased.

Technical Analysis: 

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

Market Trends:

  • Nasdaq Composite fell by 16.69 points, a decline of 0.10%, closing at 16,332.56.
  • Dow Jones Industrial Average increased by 31.99 points, up 0.08%, to 38,884.26.
  • S&P 500 rose by 6.96 points, up 0.13%, to 5,187.7.

Hong Kong Stock Market

Fundamental Analysis:

Hong Kong’s three major indices started strong but faded later.

On the market front, resource stocks like coal and oil led the gains, with China Coal Energy surging over 6% and CNOOC Services up over 2%.

Apple-related stocks also rose, with AAC Technologies increasing over 4%. However, real estate stocks led the declines across the market, with China Resources Land plummeting over 9% and China Vanke down over 4%.

The automobile sector mostly saw declines, with XPeng Motors and Li Auto each dropping over 4%. Tech stocks showed mixed results, with Xiaomi Group leading the gains up over 6%.

The automobile sector mostly saw declines, with XPeng Motors and Li Auto each dropping over 4%. According to the China Passenger Car Association, the preliminary data for April estimated national new energy passenger vehicle wholesale sales at 800,000 units, a year-on-year increase of 33% but a slight month-on-month decrease of 2%.

Technical Analysis: 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index fell by 0.37%, closing at 18,410.20 points.
  • Hang Seng Tech Index dropped by 0.63%, to 3,897.84 points.
  • Hang Seng China Enterprises Index declined by 0.42%, to 6,499.39 points.

FTSE China A50 Index

The three major A-share indices retreated in the morning session, with the ChiNext Index down over 1%. The cell immunotherapy concept was a standout, with Crown Bioscience and Kangni Biotech hitting the daily limit up.

In industry sectors, the cell immunotherapy concept rose sharply, with Crown Bioscience and Kangni Biotech hitting the daily limit.

Coal stocks were strong, with Jinneng Holding Coal Industry hitting the limit up, and Lu’an Environmental Energy up over 5%.

The poultry sector led the gains in agriculture, while precious metals recovered, with Western Gold touching the limit up.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index fell 0.41% to 3,134.75.
  • Shenzhen Component Index dropped 1.17% to 9,656.56.
  • ChiNext Price Index decreased by 1.23% to 1,869.25.
  • STAR 50 Index fluctuated, ending up 0.98% at 762.27.

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