U.S. Stocks Rise And Gold Prices Hit Record Highs Amid Strong Job Data

U.S. stocks closed higher on Friday, although all three major indexes recorded losses for the week.

The U.S. non-farm payroll data for March significantly exceeded expectations, with average hourly earnings increasing by 4.1% year-over-year.

This indicates that the U.S. economy remains resilient and inflationary pressures continue to be high, leading market forecasts to push the expected timing of the Federal Reserve’s first rate cut to September.

After a strong performance in the first quarter, U.S. stocks had a lackluster start to the second quarter, leading some market participants to question whether a correction was imminent.

Terry Sandven, Chief Equity Strategist at Bank of America Wealth Management, commented, “After substantial gains in the first quarter, the stock market may see some consolidation in the short term. A moderate pullback would be a normal fluctuation within the market’s upward trend.”

U.S. Stocks

Fundamental Analysis:

Most large technology stocks rose, with Netflix and Meta up more than 3%, Amazon and Nvidia up more than 2%, and Microsoft and Google up more than 1%. Intel fell more than 2%.

Chinese concept stocks showed mixed performance, with the Nasdaq China Golden Dragon Index down 0.18% for the week, yet up 0.37%. iQIYI rose more than 4%, Tencent Music up more than 3%, with Full Truck Alliance and Futu Holdings up more than 1%.

NetEase, Li Auto, and Pinduoduo slightly increased, while Weibo and Nio fell more than 2%, and Bilibili, Baidu, JD.com, XPeng Motors, Alibaba, and Vipshop experienced minor declines.

Technical Analysis: 

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

Market Trends:

  • Nasdaq rose by 199.44 points or 1.24%, closing at 16,248.52.
  • Dow Jones increased by 307.06 points or 0.80%, closing at 38,904.04.
  • S&P 500 Index went up by 57.13 points or 1.11%, closing at 5,204.34.

Hong Kong Stock Market

Fundamental Analysis:

Today, the three major Hong Kong indexes surged initially but fell back later.

Tech stocks mostly declined, with Baidu and Meituan down more than 2%, and JD.com, Xiaomi, and Tencent down more than 1%.

Gold stocks continued their recent rally, with Zijin Mining up more than 6%; China Silver Group soared more than 66%, leading the precious metals sector.

Heavy machinery stocks were among the top gainers, with Sany International up more than 7%.

Most automotive stocks were strong, with GAC Group up nearly 6%, while Evergrande Auto plunged 20% due to the termination of a strategic investment.

Some real estate stocks fell sharply, with Shimao Group down more than 14%.

On April 8, Shimao Group announced on the Hong Kong Stock Exchange that China Construction Bank (Asia) had filed a winding-up petition against the company with the High Court of the Hong Kong Special Administrative Region, involving financial obligations of approximately HK$15.795 billion.

Technical Analysis: 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell 0.09%, closing at 16,709.68.
  • Hang Seng Tech Index (HSTECH) dropped 0.42%, closing at 3,436.49.
  • Hang Seng China Enterprises Index (HSCEI.) slightly rose by 0.02%, closing at 5,864.55.

FTSE China A50 Index

Fundamental Analysis:

China’s three major stock indexes opened lower, briefly dipped before rebounding slightly.

The SZSE Component and the ChiNext Index narrowed their losses, while the Shanghai Composite turned red before fluctuating again, ending the morning session weaker. The ChiNext Index fell nearly 1%.

In terms of industry sectors, precious metals, jewelry, electricity, complete automobiles, highways, and minor metals were among the top gainers. Meanwhile, electronic chemicals, engineering consulting services, photovoltaic equipment, decoration materials, medical devices, and the liquor industry were among the top losers.

Gold concept, scarce resources, basic metals, tire pressure monitoring, minor metals concept, laser radar, and hub motors were active themes.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) fell 0.17%, closing at 3,063.95.
  • Shenzhen Component Index (SZCOMP) dropped 0.75%, closing at 9,473.35.
  • ChiNext Index (CHINEXT) decreased by 0.96%, closing at 1,822.7.
  • SSE Sci-Tech Innovation 50 Index fell 1.24%, closing at 747.34.

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