US stocks closed mixed on Monday. The market is gearing up for the upcoming non-farm payrolls report and earnings from tech giants such as Microsoft, Apple, Amazon, and Meta Platforms. The Federal Reserve is also set to announce its latest monetary policy decision this week.
Despite the cooling off of tech stocks affecting the major indices, small-cap stocks have been catching up, which has encouraged many market strategists. The iShares Russell 2000 ETF (IWM) rose on Monday, indicating that broader market rotation could continue this week.
Callie Cox, Chief Market Strategist at Ritholtz Wealth Management, stated, “We are seeing more sectors participating in the rally. Although it has caused some volatility over the past few weeks, the broadening market breadth is ultimately a good thing for long-term investors.”
US Stocks
Fundamental Analysis:
Most large-cap tech stocks rose, with Tesla up over 5%, Google up over 1%, and Amazon, Microsoft, and Apple posting modest gains, while Meta was flat. Nvidia and Intel dropped over 1%, and Netflix saw a slight decline.
The chip, semiconductor, airline, and energy sectors led the losses, with ARM down over 5%, Southwest Airlines, Plug Power, and ASE Technology falling over 3%. On the other hand, ON Semiconductor surged over 11%, marking its largest single-day gain since 2022.
Popular Chinese concept stocks had mixed performances, with the Nasdaq Golden Dragon China Index down 0.13%.
iQiyi rose over 3%, Alibaba gained over 2%, and Baidu, Bilibili, and Vipshop increased by over 1%, while Li Auto, JD.com, and Futu Holdings posted modest gains. XPeng Motors fell over 3%, Full Truck Alliance and NetEase dropped over 1%, and Tencent Music, NIO, and Weibo saw slight declines.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones fell 49.41 points, or 0.12%, to 40,539.93
- Nasdaq rose 12.32 points, or 0.07%, to 17,370.20
- S&P 500 gained 4.44 points, or 0.08%, to 5,463.54
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong stocks opened lower and continued to decline. Tech stocks were mixed, with Xiaomi down over 2%, Meituan, JD.com, and Tencent down over 1%, NetEase up nearly 2%, and Baidu and Alibaba posting slight gains.
Dairy stocks led the declines, with China Mengniu Dairy down nearly 7%. Auto stocks fell across the board, with BYD Company down over 3%. Oil stocks generally declined, with PetroChina down nearly 4%, while pharmaceutical outsourcing stocks rose against the trend, with WuXi AppTec up nearly 4%.
BYD fell over 3%. BYD’s Fangcheng Leopard announced a brand renewal strategy on its first anniversary, lowering the price of the Leopard 5 by 50,000 RMB to a range of 239,800 to 302,800 RMB. The Leopard 5 was officially launched on November 9, 2023, with an initial price range of 289,800 to 352,800 RMB.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index fell 1.16%, to 17,038.35
- Hang Seng Tech Index fell 1.36%, to 3,419.53
- Hang Seng China Enterprises Index fell 1.38%, to 5,996.46
FTSE China A50 Index
Fundamental Analysis:
A-shares fell across the board, with the real estate and defense sectors rising while auto manufacturing and liquor stocks declined.
Sectors like real estate, defense, agriculture, internet e-commerce, semiconductors, spatiotemporal big data, fuel ethanol, and high-speed copper cable led the gains. Rail transit equipment, kitchen and bathroom appliances, auto manufacturing, liquor, and POE film sectors led the declines.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index fell 0.52%, to 2,876.87
- Shenzhen Component Index fell 0.69%, to 8,455.90
- ChiNext Index fell 0.41%, to 1,629.00
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Disclaimer
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
