U.S. Stocks Mixed Amid Inflation Data Anticipation, Tesla Climbs Nearly 5%

U.S. stocks ended Monday mixed. The announcement of Tesla’s plans to introduce an autonomous ride-sharing service propelled its shares upward.

Ahead of the release of March CPI and PPI inflation data, as well as earnings reports from major banks like JPMorgan, the market mood was cautious.

U.S. Treasury yields continued their recent upward trend, with the yield on the 10-year note nearing the 4.5% mark.

The surprisingly strong U.S. non-farm payroll report for March, released last Friday, lifted U.S. stocks.

The significant jump in March’s non-farm employment fueled investor confidence in the economy’s strength, suggesting it could sustain corporate earnings growth. This optimism hints at the possibility that the Federal Reserve might keep interest rates high for an extended period.

Bill Adams, Chief Economist at Comerica Bank, stated, “The ongoing increase in total employment, with jobs and wages growing steadily and outpacing inflation, will keep Americans spending and propel the economy forward in 2024.”

U.S. Stocks

Fundamental Analysis:

Performance among Big Tech stocks varied. Tesla’s shares jumped nearly 5%, marking its biggest single-day gain since March 18, spurred by Elon Musk’s announcement of a robotaxi service set to launch in August.

Shares of Arm climbed over 3%, and Google’s by over 1%, while Meta and Nvidia experienced declines of more than 1% and nearly 1%, respectively.

Leading sectors included lithium batteries, automotive manufacturing, industrial metals, and mining, with significant gains observed.

Albemarle’s shares surged over 6%, and companies like American Gold, Vale SA, Sociedad Química y Minera de Chile, and Rio Tinto saw increases of more than 4%.

The performance of Chinese concept stocks was mixed, with the NASDAQ China Golden Dragon Index inching up by 0.06%.

Li Auto experienced a rise of over 4%, Futu Holdings over 2%, and both Bilibili and Full Truck Alliance gained more than 1%. NetEase and Alibaba reported modest increases.

On the downside, IQiyi and Baidu dropped more than 3%, Vipshop fell over 1%, and Tencent Music, NIO, JD.com, Pinduoduo, and XPeng saw slight declines.

Technical Analysis: 

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

Market Trends:

  • Nasdaq was up 5.43 points, a 0.03% increase, closing at 16,253.95.
  • Dow Jones fell 11.24 points, a 0.03% decrease, to 38,892.80.
  • S&P 500 Index dropped 1.95 points, a 0.04% decrease, to 5,202.39.

Hong Kong Stock Market

Fundamental Analysis:

Today, all three major indices in Hong Kong experienced gains. The performance of tech stocks was mixed, buoyed by anticipation of Blizzard’s return to national service, which propelled NetEase shares up over 3% and Xiaomi’s over 2%, while Baidu experienced a drop of more than 3%.

The automotive sector saw a collective rise, highlighted by Great Wall Motors’ impressive surge of over 7%.

Gas stocks also showed notable activity, possibly driven by concentrated investments in resource stocks, with China Gas climbing nearly 4%.

In the realm of green energy, photovoltaic stocks led the charge with Xinyi Solar’s shares jumping over 6%, and the lithium sector as a whole also saw significant gains, with Ganfeng Lithium’s stock nearly 7% higher.

Conversely, copper stocks faced downturns, with China Nonferrous Mining plunging more than 10%.

The buzz around NetEase and Blizzard’s renewed partnership has captured widespread interest, with shares of NetEase climbing over 3%.

Following speculation, NetEase Group confirmed to Sina Technology that the return of Blizzard’s national service is set for an official announcement on April 10. The collaboration, shrouded in secrecy, will be led by NetEase’s Thunder Fire business group.

Technical Analysis: 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) rose 0.55%, closing at 16,824.36.
  • Hang Seng Tech Index (HSTECH) was up 0.63%, at 3,466.34.
  • Hang Seng China Enterprises Index (HSCEI.) rose 0.41%, to 5,892.76.

FTSE China A50 Index

Fundamental Analysis:

China’s three major stock indices experienced a mixed opening, initially posting slight gains before all three dipped.

However, they eventually stabilized and began a gradual recovery, with both the ChiNext and Shenzhen Composite indices turning positive.

The leading sectors in this fluctuation were diverse, spanning batteries, minor metals, tourism and hotels, wind power equipment, energy metals, and paper printing, showcasing the breadth of market movements.

Conversely, several sectors faced declines, including mining, automotive manufacturing, the oil industry, shipbuilding, precious metals, and automotive services, indicating a selective downturn in certain areas of the market.

Active investment themes were evident in areas such as solid-state and blade batteries, organosilicon, rare earth permanent magnets, composite busbars, and fluorine chemicals, highlighting specific interest and developments within these technological and industrial segments.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) fell 0.15%, to 3,042.37.
  • Shenzhen Component Index (SZCOMP) was up 0.08%, at 9,402.58.
  • ChiNext Index (CHINEXT) rose 0.29%, to 1,812.36.
  • SSE Sci-Tech Innovation 50 Index was up 0.25%, at 742.53.

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