U.S. Stocks Gain For Third Day In A Row, Meta Drops Over 2%

The U.S. stocks saw gains on Monday, marking the third straight trading day of increases across the major indices.

The S&P 500 reached new intraday and closing highs for 2023.

This week, market attention is directed towards inflation data like CPI and PPI, as well as the outcome of the Federal Reserve’s monetary policy meeting.

Wall Street is poised to review the Consumer Price Index (CPI) on Tuesday to gauge the continuity of inflationary trends.

The Federal Reserve’s final decision for 2023 is expected to be released on Wednesday, with officials widely anticipated to maintain interest rates and disclose economic forecast summaries.

Craig Erlam, an analyst at Oanda, stated, “The week started quietly, but much is anticipated in the coming days that could determine the market’s year-end and the start of 2024.

Wednesday’s Fed decision is unlikely to be contentious, but subsequent forecasts, dot plots, and press conferences could potentially spark debate.

U.S. Stocks

Fundamental Analysis:

Large-cap tech stocks fluctuated, with Meta falling over 2% and companies like Apple, Google, Tesla, and NVIDIA dropping over 1%.

Chip and solar energy stocks saw significant increases, with Broadcom rising by 9% to achieve a historic high.

Meanwhile, other semiconductor companies like Ambarella, Intel, AMD, ON Semiconductor, Micron Technology, Qorvo, Marvell Technology, and ASML increased by over 2-9%.

Conversely, sectors like coal, lithium batteries, and blockchain declined, with Coinbase falling over 5% and Chilean Mining & Chemicals dropping over 2%.

Chinese concept stocks generally rose, reflected in a 0.28% increase in the Nasdaq Golden Dragon Index.

XPeng Motors surged nearly 5%, while NIO rose over 4%.

Other companies like Pinduoduo, Bilibili, Tencent Music, Futu Holdings, and Li Auto saw gains ranging over 1-2%. However, JD.com fell over 3%, and Alibaba dropped over 1%.

Technical Analysis:   

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

Market Trends:

  • Dow Jones increased by 157.06 points, up 0.43%, closing at 36,404.93.
  • Nasdaq rose by 28.51 points, up 0.20%, ending at 14,432.49.
  • S&P 500 Index gained 18.07 points, up 0.39%, closing at 4,622.44.

Hong Kong Stocks

Fundamental Analysis:

Hong Kong’s three major indices opened high and continued on an upward trend.

Notably, core tech stocks surged, with Kuaishou jumping over 3%, and companies like JD.com, Xiaomi, Baidu, and Alibaba increasing by over 2%.

Real estate and automotive stocks generally rose, with Sunac China Holdings surging over 13% and XPeng Motors increasing by over 4%.

Sports equipment stocks, electronic components, and certain media companies also experienced notable gains.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) increased by 0.85%, closing at 16,338.51.
  • Hang Seng Tech Index (HSTECH) rose by 1.65%, closing at 3,727.04.
  • Hang Seng China Enterprises Index (HSCEI.) went up by 1.38%, closing at 5,608.68.

FTSE China A50 Index

Fundamental Analysis:

In the A-share market, the three main indices experienced slight openings, displaying a moderate level of market divergence post-opening.

While the Shanghai Composite and the market recovered losses and traded sideways after turning red, the ChiNext Index oscillated and fell by nearly 1%.

The Science and Technology Innovation 50 Index also dropped by over 1%, and the BeiZhong 50 Index initially rose and then turned negative.

Regarding industry sectors, education, shipbuilding, real estate development, engineering consulting services, and real estate services saw significant gains.

Conversely, solar equipment, medical devices, gas, energy metals, wind power equipment, and instrumentation industries experienced notable declines.

Themes like multimodal AI, mixed reality, short interactive games, Foxconn, and Web 3.0 remained active.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) increased by 0.06%, closing at 2,993.36.
  • Shenzhen Component Index (SZCOMP) dropped by 0.25%, closing at 9,608.55.
  • ChiNext Index (CHINEXT) fell by 0.75%, closing at 1,901.35.
  • SSE STAR Market 50 Index (SSE50) declined by 1.27%, closing at 867.4.

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