Market Recap
On Thursday, US markets closed slightly higher, with the S&P 500 reaching another all-time high. The latest Federal Reserve meeting minutes suggested policymakers would hold rates steady until further progress on inflation is seen. Investors also continued monitoring the impact of former President Donald Trump’s tariff policies.
The Federal Open Market Committee (FOMC) minutes from its January 28-29 meeting stated:
“Participants indicated that as long as the economy remains close to full employment, they want to see further progress on inflation before making additional adjustments to the federal funds rate target range.”
The minutes also highlighted that many officials believe that if the economy remains strong and inflation stays elevated, keeping policy rates at restrictive levels may be necessary. The Fed kept its benchmark policy rate unchanged at 4.25%-4.5% during the January meeting.
The cautious approach reflects the Fed’s stance after lowering interest rates by 1 percentage point in the last few months of 2024. Several officials stressed the importance of seeing further declines in inflation before supporting another rate cut.
The federal funds futures market now indicates expectations of one rate cut in 2025, with the possibility of a second.
US Markets Highlights
Tech stocks saw mixed performances:
- Intel (INTC) plunged over 6%, while Meta (META) lost over 1%, snapping its 20-day winning streak.
- Amazon (AMZN), Nvidia (NVDA) edged lower, while Microsoft (MSFT) and Tesla (TSLA) gained over 1%. Microsoft also unveiled its first quantum computing chip.
- Apple (AAPL), Netflix (NFLX), and Google (GOOGL) posted small gains.
- Palantir (PLTR) tumbled nearly 10%, marking its biggest single-day drop since August 2023.
- Hims & Hers Health (HIMS) surged over 17% to a new all-time high and has now gained more than 184% year-to-date.
Chinese stocks were mixed, with the Nasdaq Golden Dragon China Index falling 0.38%.
- WeRide (WeLion) plunged nearly 16%, while UP Fintech (TIGR) dropped over 5%.
- Pinduoduo (PDD) fell more than 3%, while Baidu (BIDU) and Bilibili (BILI) lost over 2%.
- Li Auto (LI) gained over 3%, and Xpeng (XPEV) climbed nearly 3%.
Technical Analysis of US Markets
US Markets Snapshot
- Dow Jones: ▲ 71.25 points (▲0.16%) to 44,627.59
- Nasdaq Composite: ▲ 14.99 points (▲0.07%) to 20,056.25
- S&P 500: ▲ 14.57 points (▲0.24%) to 6,144.14
Hong Kong Markets Highlights
Hong Kong stocks opened lower and extended losses throughout the session.
Sector performance:
- Tech stocks led the declines, with Meituan (3690.HK) and Kuaishou (1024.HK) tumbling over 6%, while Alibaba (9988.HK) and Baidu (9888.HK) fell over 2%.
- Healthcare stocks outperformed, with Ascletis Pharma (1672.HK) soaring over 26% and Tigermed (3347.HK) gaining more than 13%.
- Semiconductor stocks pulled back, with Hua Hong Semiconductor (1347.HK) dropping nearly 5%.
Meituan Shares Slump Over 6%
Meituan’s stock plunged more than 6% after JD.com (9618.HK) announced its official entry into the food delivery market on February 11. JD is offering a “zero commission” incentive to attract merchants and has pledged to provide full social security benefits to full-time delivery riders starting in March 2025. The increased competition has raised concerns about Meituan’s market share and profitability.
Technical Analysis of Hong Kong Markets
HK Markets Snapshot
- Hang Seng Index: ▼ 1.38% to 22,627.51
- Hang Seng Tech Index: ▼ 2.24% to 5,545.35
- China Enterprises Index: ▼ 1.34% to 8,349.95
A50 & China A-Share Markets Highlights
Chinese stocks opened lower, briefly rebounded, but later declined and traded in a narrow range.
Total turnover across Shanghai, Shenzhen, and Beijing: ¥11.49 trillion
- 2,973 stocks rose
- 2,291 stocks declined
- 204 stocks remained unchanged
Sector performance:
- Top gainers: Military simulation, wig manufacturing, liquid crystal polymer (LCP), optical waveguide tech, and modified plastics.
- Top decliners: Nezha 2-related stocks, dry-type transformers, high-voltage DC transmission (HVDC), AI film production, steel-related industries, AI assistants, private cloud solutions, and ERP software.
Technical Analysis of China Markets
China Markets Snapshot
- Shanghai Composite (SSE): ▼ 0.16% to 3,346.09
- Shenzhen Component (SZSE): ▼ 0.2% to 10,751.32
- ChiNext Index (GEM): ▼ 0.72% to 2,210.93
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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.
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