US Market Rises as Investors Watch for Crucial Jobs Data

Market Overview

On Friday, US stock market closed mixed on Thursday as investors brushed off concerns over Trump’s tariff policies. A disappointing batch of corporate earnings weighed on sentiment, while Trump reaffirmed his commitment to boosting oil production to lower prices. The market’s focus shifted to the upcoming nonfarm payrolls (NFP) report scheduled for release on Friday.

The US Bureau of Labor Statistics reported that in Q4 2024, US nonfarm business productivity grew at an annualized rate of 1.2%, down from a revised 2.3% in Q3. For the full year 2024, productivity increased by 2.3%, the highest level in 14 years, excluding 2020.

Additionally, unit labor costs rose 3% in Q4, up from a revised 0.5% increase in Q3.

Analysts noted that the report is positive for the Federal Reserve, as policymakers hope that higher productivity can help curb labor costs. The recent surge in productivity has eased pressure on the labor market and brought inflation closer to the Fed’s 2% target.

US Stock Market Highlights

Tech stocks mostly gained:
- Nvidia: +3%, rebounding 10% over three days ahead of its annual GTC conference (March 17-21).
- Amazon, Meta: Up over 1%.
- Apple, Microsoft, Netflix, Google: Modest gains.
- Tesla, Intel: Dropped over 1%.
- Skyworks Solutions: Plunged nearly 25%, marking its worst single-day loss since 1987.
Chinese Stocks (ADRs) Outperformed:
- Nasdaq Golden Dragon China Index: +2.69%.
- Kingsoft Cloud: +11%.
- iQIYI: +7%.
- Li Auto: +6%.
- XPeng, Bilibili: +3%.
- Pinduoduo: +2%.
- NetEase, Alibaba: +1%+.

Technical Analysis of US Markets

US Market Snapshot

Dow Jones: -125.65 points (-0.28%), closing at 44,747.63.
Nasdaq: +99.66 points (+0.51%), closing at 19,791.99.
S&P 500: +22.09 points (+0.36%), closing at 6,083.57.

Hong Kong Markets Highlights

Hong Kong’s three major indices opened lower but rebounded:

Tech stocks led the recovery:
- Lenovo: +7%.
- Xiaomi: +5%.
- Meituan, Tencent: +3%.
- Alibaba: +2%.
Auto stocks surged:
- Dongfeng Motor: +12%.
Brokerage stocks strengthened:
- China Merchants Securities: +6%.
Real estate stocks rebounded:
- Sunac China: +9%.

Real Estate Market Update

February 5: Vanke announced major executive appointments in finance, legal, and strategic investment, including regional leadership changes in Beijing and East China.
February 6: Data from CRIC Research Center showed that in January, the top 30 real estate firms invested ¥63.8 billion in land acquisitions, up 186% year-over-year.

Technical Analysis of Hong Kong Market

HK Market Snapshot

Hang Seng Index: +1.53%, closing at 21,210.86.
Hang Seng Tech Index: +2.79%, closing at 5,200.57.
China Enterprises Index: +1.48%, closing at 7,803.95.

A50 & China A-Share Market Highlights

A-shares rallied sharply, with the Shanghai Composite reclaiming 3,300 points and over 4,800 stocks gaining.

Total Market Turnover: ¥1.16 trillion.
Market Breadth:
- 4,996 stocks advanced.
- 395 stocks declined.
- 76 stocks remained unchanged.

Top Performing Sectors:

Medical diagnostics, electronic medical records, steer-by-wire systems, DeepSeek AI, aerospace tooling, construction leasing, computing power suppliers, Huawei PanGu AI, and financial software.

Underperforming Sectors:

Ship propulsion, passenger buses, banking, hydropower, auto glass, high-dividend stocks, planetary gear reducers, insulated containers, highways, and forklifts.

Technical Analysis of China Market

China Market Snapshot

Shanghai Composite Index: +1.33%, closing at 3,314.29.
Shenzhen Component Index: +2.52%, closing at 10,655.69.
ChiNext Index: +3.63%, closing at 2,197.70.

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Disclaimer

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