Market Overview
On Friday, US stock market closed higher on Thursday, with the Dow Jones Industrial Average gaining over 400 points and the S&P 500 setting another record high. President Trump addressed various topics, including tariffs, interest rates, oil prices, and the Russia-Ukraine conflict. He called for immediate rate cuts and urged OPEC to lower oil prices.
Speaking at the World Economic Forum in Davos, Trump emphasized tariffs, stating:
“The message I want to convey to businesses is: ‘Manufacture your products in the US.’ If not, you will face tariffs.”
Trump also revealed discussions with Democrats about extending the initial tax cut plan. He proposed reducing the corporate tax rate for US-made products to 15%, aiming to make the US the developed country with the lowest corporate tax rate.
In addition, Trump called for immediate rate cuts and expressed his desire to “eliminate” US debt.
UBS Report: UBS noted that the momentum in US stocks is likely to continue, with further room for growth. While acknowledging recent volatility, the report emphasized that investors should not overlook the favorable fundamentals supporting US equities, even as they closely monitor the new administration’s next steps.
US Stock Market Highlights
The three major US indices all closed higher:
- The S&P 500 rose 0.53%, closing at a record high.
- The NASDAQ gained 0.22%.
- The Dow Jones Industrial Average climbed 0.92%.
Sector Performance:
- Chip Stocks Decline: ARM fell over 7%, Micron Technology dropped more than 4%, and ASML lost over 2%.
- EA Disappoints: Electronic Arts plummeted over 16% following weak Q3 results and a downward revision of its full-year guidance.
- Chinese ADRs: Mixed performance, with TAL Education surging over 21% and iQIYI gaining more than 2%. On the downside, MINISO fell over 4%, NIO dropped more than 3%, and XPeng Motors declined by over 2%.
Technical Analysis of US Market
Market Snapshot
- Dow Jones: +408.34 points (+0.92%), closing at 44,565.07.
- NASDAQ: +44.34 points (+0.22%), closing at 20,053.68.
- S&P 500: +32.34 points (+0.53%), closing at 6,118.71.
Hong Kong Stock Market Overview
Hong Kong stocks strengthened across the board:
- Tech Stocks: Xiaomi gained over 5%, while Bilibili and Tencent Holdings rose more than 2%.
- Semiconductor Stocks: Continued their rally, with SMIC climbing nearly 4%.
- Apple-Related Stocks: Led gains, with Sunny Optical Technology surging more than 7%.
- Coal Stocks: Showed strong performance, with China Shenhua Energy rising over 3%.
Semiconductor Outlook: Tianfeng Securities highlighted that the new US administration’s policies on China’s semiconductor industry warrant attention. Geopolitical pressures may accelerate the growth of China’s domestic semiconductor supply chain. Localization, particularly in advanced technologies like AI and cutting-edge manufacturing, remains critical, offering significant development opportunities for local industries.
Technical Analysis of Hong Kong Market
Market Snapshot
- Hang Seng Index: +1.81%, closing at 20,057.46.
- Hang Seng Tech Index: +2.78%, closing at 4,640.98.
- China Enterprises Index: +1.92%, closing at 7,301.56.
A50 & China A-Share Market Highlights
A-shares opened lower but recovered and moved higher throughout the session. The combined trading volume of Shanghai, Shenzhen, and Beijing markets reached ¥743.9 billion, with 3,551 stocks advancing, 1,663 declining, and 248 unchanged.
Sector Performance:
- Top Gainers: Tax digitalization, ERP software, middleware, AI assistants, synchronous reluctance motors, technical collaborations, AI office tools, office software, UTG glass, and ADAS systems.
- Top Decliners: Edible mushrooms, medical waste management, steel ropes, snack foods, concrete pipes, plant-based meat, supply cooperatives, forestry, supermarkets, and insulated containers.
Technical Analysis of China Market
Market Snapshot
- Shanghai Composite: +0.73%, closing at 3,253.79.
- Shenzhen Component Index: +1.13%, closing at 10,290.76.
- ChiNext Index: +1.5%, closing at 2,124.8.
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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.
