U.S. Stocks Gain As Market Awaits Fed’s November Meeting

U.S. stocks closed higher on Tuesday, but all three major stock indices recorded declines in October.

The market continues to pay attention to U.S. corporate earnings.

The Federal Reserve began its monetary policy meeting on Tuesday and will announce the meeting’s results on Wednesday.

The market remains focused on the dynamics of U.S. Treasury yields. On Tuesday, the 10-year benchmark Treasury yield increased by 3.4 basis points, reaching 4.911%. This yield has accumulated an increase of over 35 basis points in October.

The Federal Reserve commenced its two-day monetary policy meeting on Tuesday, and according to the CME Group’s FedWatch tool, federal funds futures imply a 98% likelihood of the Fed maintaining the current range of interest rates.

U.S. Stocks

Fundamental Analysis:

Large tech stocks showed mixed performance, with Tesla rising over 1%, while Apple, Microsoft, Netflix, and Amazon saw slight gains. Nvidia, Google, and Meta had minor declines.

Banking stocks rose collectively, with Bank of America surging over 2%, Citigroup and JPMorgan Chase rising over 1%, and Goldman Sachs, Morgan Stanley, and Wells Fargo seeing slight gains.

Popular Chinese concept stocks faced a downturn, with the Nasdaq China Golden Dragon Index falling by 1.69%, accumulating a 6.48% decline in October.

Manbang Group dropped by over 8%, Futu Holdings fell by over 4%, and companies like NIO, Pinduoduo, Weibo, JD.com, Baidu, NetEase, Alibaba, Vipshop, and Tencent Music saw slight declines.

Technical Analysis:   

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

Market Trends:

  • Dow Jones Industrial Average gained 123.91 points, a 0.388% increase, closing at 33,052.87.
  • Nasdaq Composite Index (Nasdaq) rose by 61.76 points, a 0.48% increase, closing at 12,851.24.
  • S&P 500 Index increased by 26.98 points, a 0.65% gain, closing at 4,193.80.

Hong Kong Stocks

Today, the three major Hong Kong stock indices opened high and then rebounded after testing the lows.

Core technology stocks saw a general decline, with JD.com Group falling by nearly 2%, Meituan and Baidu Group dropping over 1%, and Kuaishou surging by over 1%.

Automotive stocks showed mixed performance, with Great Wall Motors rising by over 5% and Yadea Holdings falling by over 3%.

Restaurant stocks had the most significant declines, with Parkson China plunging by over 13% and Haidilao dropping by nearly 11%.

Gold stocks experienced a collective decline, with China Gold International falling by over 3%.

In terms of news, the Federal Reserve is currently holding its two-day November interest rate meeting, with the results set to be announced early on Thursday.

The market expects the Fed to maintain interest rates at the upcoming meeting, but stable U.S. economic data and robust CPI figures increase the possibility of the Fed raising rates for the final time in 2023 during the December meeting.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) increased by 0.04% to close at 17,119.12 points.
  • Hang Seng Tech Index (HSTECH) dropped by 0.32% to close at 3,747.03 points.
  • Hang Seng China Enterprises Index (HSCEI) fell by 0.02% to close at 5,860.39 points.

FTSE China A50 Index

Fundamental Analysis:

The A-share market’s three major indices collectively opened higher, with Guizhou Moutai’s bid nearing the daily limit increase.

After the opening, the Shanghai Composite Index experienced a slight pullback and entered a sideways consolidation phase, while the Shenzhen Component Index and the ChiNext Index showed signs of testing the lows and rebounding, with the ChiNext Index falling by nearly 1%.

In terms of industry sectors, gaming, wind power equipment, automotive components, automotive services, automotive manufacturing, and the liquor industry saw the most significant gains.

Meanwhile, insurance, precious metals, pharmaceuticals, energy metals, and medical services faced declines.

Concepts related to Kirin Battery, superconductivity, automotive integration die-casting, and 3D printing remained active.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) increased by 0.16%, closing at 3,023.64 points.
  • Shenzhen Component Index (SZCOMP) dropped by 0.24%, closing at 9,839.72 points.
  • ChiNext Index (CHINEXT) dropped by 0.42%, closing at 1,959.89 points.
  • SSE STAR Market 50 Index (SSE50) rose by 0.05%, closing at 874.81 points.

Forward-looking Statements   
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