Market Recap
On Wednesday, US stock market closed higher, led by gains in tech. The Federal Reserve kept interest rates unchanged, raised inflation projections, and lowered economic growth forecasts while maintaining its outlook for two rate cuts in 2025. Fed Chair Jerome Powell acknowledged the impact of Trump’s trade policies, citing increased uncertainty.
The Fed concluded its two-day policy meeting and announced its decision at 2 PM ET, keeping the federal funds rate at 4.25%–4.50%. It also confirmed plans to slow its balance sheet reduction starting in April.
The Federal Open Market Committee (FOMC) statement projected higher inflation and downgraded economic growth expectations.
Despite signs of stagflation, the Fed reiterated its forecast for two rate cuts in 2025, aligning with the dovish stance signaled in September.
The statement noted: “Recent indicators suggest continued expansion in economic activity. Unemployment remains low, labor market conditions are strong, and inflation is still somewhat elevated.”
The Fed remains committed to maximum employment and returning inflation to 2% over the long run. However, it acknowledged rising economic uncertainty and is closely monitoring the risks to both its employment and inflation mandates.
US Market Highlights
Tech stocks mostly gained, with Tesla jumping over 4%, Broadcom up more than 3%, and Google climbing over 2%. Apple, Microsoft, Amazon, and Nvidia advanced more than 1%. Cryptocurrency, cruise lines, and automakers were among the biggest gainers, with Strategy soaring 7%, Coinbase and Carnival rising over 4%, and Lucid up more than 3%. Food & beverage stocks underperformed, with Tonix plunging 19%, Gilead and Scynexis dropping over 2%, and Hershey and Mondelez falling more than 1%.
Chinese stocks were mixed, with the Nasdaq Golden Dragon Index slipping 0.44%. GDS Holdings plunged nearly 14%, Baidu fell over 4%, Tencent Music and Vipshop declined more than 2%, and Zeekr dropped over 1%. Meanwhile, XPeng gained over 5%, with Ctrip, TAL, Full Truck Alliance, and NetEase rising more than 1%. Alibaba and New Oriental saw slight gains.
US Market – Technical Analysis
US Market Performance
- Dow Jones: +383.32 pts (+0.92%) → 41,964.63
- Nasdaq: +246.67 pts (+1.41%) → 17,750.79
- S&P 500: +60.63 pts (+1.08%) → 5,675.29
Hong Kong Market Highlights
Hong Kong stocks were mixed. Tech stocks mostly declined, with Baidu dropping over 4%, JD.com falling more than 3%, and Tencent, Meituan, and Alibaba down over 2%. Copper stocks surged in early trading but later pared gains, with MMG rising over 4%. Autonomous driving firm UDrive soared as much as 28%.
Copper stocks saw a morning rally, with MMG jumping over 4%. Bloomberg reported that the US is set to receive a massive copper shipment of 100,000–150,000 tons in the coming weeks. Last week, President Trump ordered a national security review of copper imports, which could lead to tariffs or other trade measures.
Hong Kong Market – Technical Analysis
Hong Kong Market Performance
- Hang Seng Index: -1.18% → 24,477.72
- Hang Seng Tech Index: -1.68% → 5,939.50
- China Enterprises Index: -1.18% → 9,055.51
A50 & China A-Share Market Highlights
A-shares saw choppy trading, with indices opening lower before rebounding and then settling into a narrow range. The total market turnover across Shanghai, Shenzhen, and Beijing reached ¥8.8 trillion, with over 3,300 stocks advancing.
Sector-wise, machine components, gears, piling equipment, steel cables, milling machines, car speakers, vacuums, aquaculture, Tesla’s Robotaxi concept, and bearings led gains. Meanwhile, HVDC transmission, control systems, office software, mass spectrometry, insurance, infrared thermal imaging, linear actuators, online insurance, LED backlights, and cabinetry declined.
China Market – Technical Analysis
China Market Performance
- Shanghai Composite: -0.07% → 3,424.16
- Shenzhen Component: -0.12% → 10,965.8
- ChiNext Index: -0.14% → 2,219.2
Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above information 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.
