Market Recap
On Thursday, US stock market closed higher, with the S&P 500 surpassing 6,100 to hit a new intraday record high. AI-related stocks, including Oracle and Nvidia, rallied following President Trump’s announcement of a $500 billion AI infrastructure initiative. Additionally, Netflix and Procter & Gamble reported robust quarterly earnings.
Investors continue to monitor Trump’s tariff policies. On Tuesday, he mentioned the possibility of imposing a 10% tariff on imports from China starting February 1. Earlier this week, he had also floated the idea of a 25% tariff on goods from Canada and Mexico.
Deutsche Bank noted that a 25% tariff on Canadian and Mexican imports could increase the Fed’s preferred inflation measure, the PCE index, by as much as 1.4%.
US Stock Market Highlights
- Major Tech Stocks: Nvidia and Microsoft climbed over 4%, Netflix surged more than 9%, while Meta and Amazon each gained over 1%. Tesla declined by more than 2%.
- AI Stocks: The AI sector showed strength, with Arm Holdings up nearly 16%, Oracle rising over 6%, AMD up more than 4%, Dell Technologies climbing over 3%, and TSMC advancing more than 2% to reach a new record high.
- Nuclear Energy Stocks: Continued their rally for a second day, with NANO Nuclear Energy gaining over 13%, Oklo Inc rising over 9%, and Eaton advancing nearly 4%.
- Chinese ADRs: Most Chinese stocks fell, with Li Auto down nearly 5%, XPeng Motors and MINISO Group dropping over 3%, and iQIYI, TAL Education, New Oriental, NetEase, and Pinduoduo losing over 1%. However, NIO gained over 2%, and JD.com and Alibaba rose over 1%.
Technical Analysis of US Market
Market Snapshot
- Dow Jones: +130.92 points (+0.30%), closing at 44,156.73.
- NASDAQ: +252.56 points (+1.28%), closing at 20,009.34.
- S&P 500: +37.13 points (+0.61%), closing at 6,086.37.
Hong Kong Market Highlight
Hong Kong stocks opened higher but retreated later in the session. Performance across sectors was mixed:
- Tech Stocks: NetEase and Alibaba gained over 1%, while Xiaomi fell nearly 1%.
- Financial Stocks: The financial sector rallied, led by Chinese brokerage firms. CICC rose more than 3%, and insurance stocks, such as China Life, also advanced over 3%.
- Semiconductor Stocks: Continued their strength, with Hua Hong Semiconductor gaining over 4%.
Semiconductor Outlook: Tianfeng Securities highlighted that the policy direction of the newly inaugurated US president regarding China’s semiconductor sector warrants attention. Geopolitical tensions may accelerate the development of China’s domestic semiconductor industry, with localization becoming a long-term trend, particularly in cutting-edge areas like AI and advanced manufacturing.
Technical Analysis of Hong Kong Market
Market Snapshot
- Hang Seng Index: +0.24%, closing at 19,826.00.
- Hang Seng Tech Index: +0.10%, closing at 4,585.64.
- China Enterprises Index: +0.45%, closing at 7,209.79.
A50 & China A-Share Market Highlights
A-shares opened higher and maintained their upward trajectory throughout the session. The combined trading volume of Shanghai, Shenzhen, and Beijing markets reached ¥919.36 billion, with 4,465 stocks advancing, 880 declining, and 120 remaining unchanged.
Sector Performance
- Top Gainers: AI-related stocks, securities restructuring, tax digitalization, financial holding companies, Douyin (TikTok) overseas ventures, nuclear equipment, water reducers, edible mushrooms, Ant Group concepts, and database technologies.
- Top Decliners: High-voltage DC transmission (HVDC), uninterruptible power supply (UPS), electric bicycles, power equipment, copper-clad laminates (CCL), charging modules, Pancake optics (folded light paths), secondary equipment, exploration devices, and State Grid Holdings.
Technical Analysis of China Market
Market Snapshot
- Shanghai Composite: +1.02%, closing at 3,246.51.
- Shenzhen Component Index: +0.44%, closing at 10,271.26.
- ChiNext Index: +0.75%, closing at 2,116.89.
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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 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.
