US stocks closed higher on Monday, led by gains in tech stocks, with the Nasdaq setting a new record high. Apple rose 2.9%, also reaching a new all-time high.
As we enter the second half of 2024, investors are keenly watching if the AI-driven market rally from the first half will continue. This week’s focus includes the Fed meeting minutes and June’s non-farm payroll report.
Tech giants Microsoft, Nvidia, Apple, and Tesla all saw gains, propelling the market upward. The first half of 2024 saw robust performance in US stocks, with the S&P 500 up 14.5%, the Nasdaq up 18.1%, and the Dow Jones up about 3.8%, fueled by the ongoing AI frenzy and Nvidia’s strong performance.
Morgan Stanley strategists advised that investors should continue stock-picking and maintain a preference for high-quality US stocks as the market begins to price in a potential Republican victory in the upcoming elections.
US Stocks
Fundamental Analysis:
Large-cap tech stocks mostly rose, with Apple up nearly 3%, Microsoft and Amazon up over 2%, and Google and Meta showing modest gains. Both Apple and Microsoft closed at record highs.
Automobile manufacturers and consumer electronics led the gains, with Rivian, LG Electronics, and Dell Technologies up over 3%, and Honda and Ford up over 1%.
Most popular Chinese stocks rose, with the Nasdaq Golden Dragon China Index up 0.79%. Tencent Music rose over 2%, Vipshop gained over 1%, and NetEase, Weibo, Alibaba, and Pinduoduo posted modest gains.
On the downside, iQiyi, Full Truck Alliance, and Futu Holdings fell over 2%, Bilibili dropped nearly 1%, and Baidu and JD.com saw slight declines.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones: Up 50.66 points, or 0.13%, at 39,169.52
- Nasdaq: Up 146.70 points, or 0.83%, at 17,879.30
- S&P 500: Up 14.61 points, or 0.27%, at 5,475.09
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s major indices rose and then fell back. Tech stocks showed mixed results, with Alibaba and Meituan up over 0.5%, while Bilibili fell over 3%, and JD.com and Baidu fell nearly 2%.
Real estate stocks led the gains, with Longfor Group up over 5%. Coal stocks were strong, with China Shenhua up over 4%.
Oil stocks surged, with CNOOC and PetroChina both up over 4%. Power stocks also rose, with Longyuan Power up over 7%. Conversely, home appliances, sports goods, and electronic parts sectors saw declines.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index: Up 0.57%, at 17,819.50
- Hang Seng Tech Index: Down 0.14%, at 3,549.43
- Hang Seng China Enterprises Index: Up 0.95%, at 6,392.06
FTSE China A50 Index
Fundamental Analysis:
China’s A-shares experienced mixed movements in the morning, with the Shanghai Composite showing strength, while the ChiNext Index adjusted lower.
Software stocks surged, particularly in the finance and tax sectors, with over 10 stocks including Xuanji Information, Digital Authentication, PULIAN Software, and Shuyou Shares hitting the daily limit.
Liquor stocks also showed strong performance, with multiple stocks including Kweichow Moutai rising over 3%. Real estate stocks briefly spiked, with Rongfeng Holding hitting the limit up.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index: Up 0.04%, at 2,995.78
- Shenzhen Component Index: Up 0.71%, at 8,835.93
- ChiNext Index: Up 0.69%, at 1,671.08
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