On Monday, US stocks closed higher, driven by strong performance in technology stocks. The Nasdaq gains 1%, with Apple hitting another record high, nearing a market cap of $4 trillion. This week, trading volumes are expected to remain light due to the shortened schedule for the Christmas holiday.
Investors are optimistic about a potential “Santa Claus Rally,” hoping for a positive close to 2024 after last week’s volatility. Historically, the S&P 500 has averaged a 1.3% gain during the final five trading days of December and the first two trading days of January since 1969.
Additionally, market focus has turned to the Nasdaq 100 index’s rebalancing adjustments. Tesla, Meta, and Broadcom saw weight reductions, with Tesla dropping from 4.9% to 3.9%, Broadcom from 6.3% to 4.4%, and Meta from 4.9% to 3.3%. Meanwhile, Apple, Nvidia, Microsoft, and Alphabet had their weights increased.
US Stock Market Overview
Apple: Rose slightly to a new all-time high, nearing a $4 trillion market cap. Wedbush analyst Daniel Ives predicts an AI-driven supercycle beginning with the iPhone 16 in the December quarter, potentially driving iPhone sales to exceed 240 million units in the next 3–6 months.
Technology Stocks: Broad gains were observed: Nvidia surged over 3%, Meta and Tesla rose more than 2%, Google climbed over 1%, while Apple, Netflix, and Amazon saw modest gains. Microsoft posted a slight decline.
Semiconductors: The chip sector rallied, with TSMC, Broadcom, and GlobalFoundries up over 5%, AMD rising 4%, and Qualcomm, Intel, and ASML gaining over 3%.
Automotive: Honda surged more than 12% following news of merger talks between Honda and Nissan.
US-China Stocks:
Chinese stocks on the Nasdaq showed mixed results, with the Nasdaq Golden Dragon China Index up 0.91%.
- Gainers: Alibaba and Baidu rose over 3%, New Oriental, Futu Holdings, and Li Auto gained more than 2%, while JD.com, Weibo, and iQIYI were up over 1%.
- Decliners: FangDD fell over 7%, and DouYu dropped more than 4%.
Technical Analysis
Market Recap
- Dow Jones: +66.69 points (+0.16%), closing at 42,906.95.
- Nasdaq Composite: +192.29 points (+0.98%), closing at 19,764.89.
- S&P 500: +43.22 points (+0.73%), closing at 5,974.07.
Hong Kong Stock Market Overview
Due to the Christmas holiday, Hong Kong markets closed early on Tuesday and will remain closed on Wednesday and Thursday.
- Technology stocks: Xiaomi and Tencent surged over 3%, while Alibaba fell more than 3% and Baidu declined nearly 3%.
- Semiconductor stocks: Semiconductor stocks outperformed, with industry leader SMIC soaring over 10%.
- Resource stocks: Coal and gold-related stocks were weak. SouthGobi Resources plunged over 8%, and China Gold International dropped nearly 3%.
Sector Highlights:
Solar Stocks: Strength in the sector, with Flat Glass Group rising over 7%.
Technology Stocks: Gains across the board, with Xiaomi and Alibaba rising over 3%, while Kuaishou, JD.com, and Baidu rose more than 1%. NetEase declined over 1%.
Tencent Concept Stocks: Continued to rally, with Weimob Group surging 30%. Analysts see further upside as Tencent’s WeChat e-commerce evolves with new features like the “Send Gift” functionality, enhancing market expectations for WeChat’s monetization.
Shipping Stocks: Strong performance led by Orient Overseas International, up nearly 7%.
Apple Suppliers: Active trading saw BYD Electronics rise over 5%.
Chinese Banks: Gains for major players, including Bank of Communications, Agricultural Bank of China, and Bank of China, all up nearly 2%.
Technical Analysis
Market Recap
- Hang Seng Index: +1.08%, closing at 20,098.29.
- Hang Seng Tech Index: +1.12%, closing at 4,507.65.
- Hang Seng China Enterprises Index: +1.25%, closing at 7,303.92.
A50 & China A-Shares Overview
A-shares rebounded across all three major indices in morning trading. By midday, the total market turnover reached ¥850.3 billion, down ¥148.4 billion from the previous day, with over 2,700 stocks advancing.
Sector Performance
- Top Gainers: Railway equipment, high-speed copper cables, high-voltage fast charging, and robotics led gains.
- Top Decliners: Cultivated diamonds and cultural media declined the most.
Key Sector Highlights
- Financials: Banks and securities led the rise, with Huaxin Securities hitting its daily limit. ICBC, CCB, ABC, and BOC shares all reached new all-time highs.
- Railway Equipment: Tongye Technology, CRRC, and Weiao Co. hit limit-up.
- High-Speed Copper Cables: Shenglan Tech, Derun Electronics, and Baosheng Group saw strong gains.
- High-Voltage Fast Charging: Companies like Jiuzhou Group and Beijing Kede also surged.
- Media and Diamonds: Visual China and Huifeng Diamond fell over 10%, with others following suit.
Technical Analysis
Market Recap
- Shanghai Composite (SSE): +0.68%, closing at 3,374.18.
- Shenzhen Component (SZSE): +0.71%, closing at 10,611.75.
- ChiNext (Growth Enterprise Market Index): +0.61%, closing at 2,201.35.
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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 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.
