U.S. Stocks Up For Third Consecutive Day As Treasury Yields Decline

On Tuesday, U.S. stocks closed higher, and the substantial drop in U.S. Treasury yields provided support for the stock indices.

A Federal Reserve official stated that interest rates were already high enough and did not need further increases, further boosting market risk appetite.

Investors continued to monitor developments in the Israeli-Palestinian conflict.

Amid the escalation of the Israeli-Palestinian conflict, investors turned to traditional safe-haven assets such as government bonds, causing bond prices to rise and yields to fall.

The sharp decline in U.S. Treasury yields supported the U.S. stock market, as the recent rapid increase in U.S. Treasury yields had raised concerns among stock investors.

The strike by the United Auto Workers Union (UAW) against the three major Detroit automakers entered its fourth week, resulting in losses exceeding $5.5 billion, surpassing any automotive industry strike this century.

U.S. Stocks

Fundamental Analysis:

Clean energy and shipping sectors led the gains, with Sunrun, fuel cell energy, JinkoSolar, and First Solar all rising significantly.

Large-cap tech stocks mostly saw gains, including American Superconductor (USAS), AMD, Tesla, Meta (formerly Facebook), and NVIDIA, while Amazon made modest gains.

Streaming, precious metals, and luxury goods sectors saw declines, with Netflix and Tapestry leading the losses.

Popular Chinese tech stocks experienced a general uptick, with the Nasdaq Golden Dragon Index rising by over 3%.

Bilibili, Futu Holdings, NIO, iQiyi, Tencent Music, Manbang Group, and Li Auto all recorded gains. JD.com, XPeng Motors, Weibo, Alibaba, Pinduoduo, and NetEase also saw increases, while Vipshop Holdings experienced a slight decline.

Technical Analysis:   

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

Market Trends:

  • Dow Jones Industrial Average gained 134.65 points, up 0.40%, closing at 33,739.30.
  • Nasdaq Composite Index (Nasdaq) rose 78.60 points, up 0.58%, closing at 13,562.84.
  • S&P 500 Index increased by 22.58 points, up 0.52%, closing at 4,358.24.

Hong Kong Stocks

All three major indices saw gains. In the tech sector, companies like Meituan, Alibaba, JD.com, Tencent, and Baidu all rose by over 1%.

Property stocks had mixed performance, with China Evergrande Group surging but Sunac China Holdings falling.

Automotive stocks, led by NIO, saw widespread gains.

The electronic components sector had strong advances, with Qutoutiao Technology surging over 20%.

The pharmaceutical sector was active, with healthcare outsourcing concepts gaining traction, and Kang Long Chemicals seeing an 11% increase.

Auto stocks rally, leading with a 6% surge by NIO.

On the news front, on October 10th, the China Association of Automobile Manufacturers released data indicating preliminary statistics: In September, the new energy vehicle market recorded 743,000 units in retail sales, a year-on-year increase of 21% and a month-on-month growth of 4%.

Cumulatively for this year, retail sales have reached 5.186 million units, reflecting a year-on-year surge of 34%.

Furthermore, national passenger car manufacturers saw a year-on-year growth of 26% in wholesale of new energy vehicles, with a 4% increase compared to the previous month.

Their year-to-date wholesale figures totaled 5.911 million units, showcasing a 37% year-on-year increase.

Technical Analysis:   

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) increased by 1.44%, closing at 17,743.93.
  • Hang Seng Tech Index (HSTECH) rose by 2.1%, closing at 3,956.07.
  • Hang Seng China Enterprises Index (HSCEI) gained 1.47%, closing at 6,141.29.

FTSE China A50 Index

Fundamental Analysis:

Peripheral markets collectively rose, and in the early morning of October 11, A-shares opened higher.

The market showed initial volatility and later continued to fluctuate, with all three major indices falling slightly in the morning. However, the Growth Enterprise Market (GEM) maintained an increase of over 1%.

In terms of industry sectors, medical services, pharmaceuticals, medical devices, biotech products, and semiconductors saw significant gains, while mining, precious metals, gas, petroleum, and coal industries saw declines.

Conceptually, CRO (Contract Research Organization), weight loss drugs, SPD, satellite communications, and innovative pharmaceuticals were active.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) increased by 0.19%, closing at 3,081.52.
  • Shenzhen Component Index (SZCOMP) rose by 0.74%, closing at 10,124.5.
  • ChiNext Index (CHINEXT) gained 1.2%, closing at 2,011.86.
  • SSE STAR Market 50 Index (SSE50) increased by 1.13%, closing at 891.99.

Forward-looking Statements   
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.    

Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.    

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.   

While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.

Share the Post:

Related Posts