U.S. Stock Indices Mixed, NVIDIA Soars Over 8% In Strong Rebound

The three major U.S. stock indices closed with mixed movements. Leading AI company NVIDIA experienced a significant rebound in its stock price, as investors held an optimistic view of the company’s earnings report for the week. The market also focused on Federal Reserve Chairman Powell’s speech at the Jackson Hole Symposium on Friday.

U.S. Stocks

Fundamental Analysis:

Among the 11 sectors of the S&P 500 Index, various movements were observed. The technology sector gained 2.26%, the consumer discretionary sector increased by 1.15%, and the telecommunications sector rose by 0.8%.

Conversely, the financial sector fell by nearly 0.1%, energy and consumer staples sectors both declined over 0.6%, and the real estate sector dropped around 0.9%.

Large tech stocks rallied, with semiconductor stocks leading the gains. NVIDIA surged by over 8%, achieving its largest single-day increase since May.

HSBC reiterated its buy rating on NVIDIA, raising the target price to $780, suggesting an 80% potential increase from last Friday’s closing price.

Additionally, the UK announced plans to invest £100 million in purchasing thousands of AI chips and is in late-stage negotiations with NVIDIA.

Tesla rose by over 7%, marking its largest single-day gain since March 21. Meta (formerly Facebook) increased by over 2%, while Amazon and Microsoft gained over 1%. Apple, Netflix, and Google saw slight increases.

On the other hand, AMC Theatres plunged over 23%, reaching its lowest closing price since January 2021.

Bank stocks continued their six-day decline, with the major U.S. banks collectively falling by about 1%. JPMorgan Chase and Bank of America rebounded at the end, while Wells Fargo approached a turnaround.

Regional banks also narrowed their losses towards the end, with Westpac Banking Corporation falling by nearly 2%, and Zions Bancorporation falling by nearly 1%, but Ally Financial and KeyCorp turning positive.

Most popular Chinese tech stocks experienced gains, with the Nasdaq Golden Dragon China Index rising by 0.82%.

Xpeng Motors led the Chinese stocks, surging by nearly 10%. Bank of America Merrill Lynch upgraded Xpeng Motors’ ADR rating from Neutral to Buy, setting a target price of $22.

The bank is optimistic about the company’s improved cost structure and prospects of collaboration with Volkswagen.

Other Chinese tech giants such as Vipshop, NIO, Bilibili, Li Auto, Netease, and Weibo saw gains ranging from over 1% to over 2%, while Pinduoduo and Futu Holdings also rose over 1%.

Alibaba, JD.com, and Full Truck Alliance experienced slight increases, while iQiyi, Tencent Music, and Baidu declined slightly.

Technical Analysis:   

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

Market Trends:

  • Dow Jones Industrial Average declined by 36.97 points, or 0.11%, closing at 34,463.69.
  • Nasdaq Composite Index increased by 206.81 points, or 1.56%, closing at 13,497.59.
  • S&P 500 Index rose by 30.06 points, or 0.69%, closing at 4,399.77.

Hong Kong Stocks

Fundamental Analysis:

The three major Hong Kong indices opened with gains today. The Hang Seng Index (HSI) showed limited signs of improvement after a recent decline of 363 points, hitting a low of 17,587 points.

Although a slight rebound was seen at the close, the index still fell by 327 points for the day, closing at 17,623 points, with a trading volume of HKD 108.54 billion.

The HSI experienced a cumulative decline of 1,624 points under the “seven-day decline” trend, resulting in a monthly decline of 2,455 points.

In terms of sectors, internet-related stocks saw collective gains. Baidu, Inc. (9888.HK) increased by over 1%, while Kuaishou Technology (1024.HK) Technology (1024.HK), Meituan (3690.HK), and Alibaba Group Holding Limited (9988.HK) all rose by nearly 1%.

The automotive sector showed a broad recovery, led by XPeng Inc. (9868.HK) with a gain of over 6%, followed by Geely Automobile Holdings Limited (0175.HK) and Li Auto Inc. (2015.HK).

The real estate sector saw minor gains, with Sunac China Holdings Limited (1918.HK) increasing by over 2%.

Chinese brokerage stocks experienced a pullback, with CITIC Securities Company Limited (6030.HK) rising by nearly 2%.

China Star Entertainment Limited (0326.HK), the parent company of China’s Good Voice talent show, continued its decline for a second day, falling by over 1%.

Technical Analysis:

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) rose by 0.11%, closing at 17,641.86.
  • Hang Seng Tech Index (HSTECH) increased by 0.85%.
  • Hang Seng China Enterprises Index (HSCEI) rose by 0.23%.

FTSE China A50 Index

Fundamental Analysis:

The major A-share indices in China saw a slight opening gain, followed by a weak and bearish trend. A subsequent rebound occurred in the market, but it was short-lived as the indices once again turned downward.

The Shenzhen Component Index hit a new low of over a year, and the ChiNext Index fell by over 1%, continuing its three-year low trend.

The total trading volume of the Shanghai and Shenzhen markets was CNY 450.937 billion, with net selling from northbound funds reaching CNY 4.31 billion.

Out of more than 3,900 listed stocks, 24 hit the daily limit up (including ST stocks) and 12 hit the daily limit down.

In terms of sectors, internet services, communication services, precious metals, cultural media, and software development were among the sectors with the highest gains.

Environmental protection, beauty care, household light industry, medical services, and medical equipment sectors were among those with the highest losses.

Among thematic concepts, data elements, data confirmation, computing power, innovative data, and data security were relatively active.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) declined by 0.24%, closing at 3,085.48.
  • Shenzhen Component Index (SZCOMP) declined by 0.73%, closing at 10,244.75.
  • ChiNext Index (CHINEXT) fell by 1.3%, closing at 2,057.81.
  • SSE STAR Market 50 Index (SSE50) fell by 0.98%, closing at 883.36.

 

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