Market Recap
On Friday, US markets closed lower as the S&P 500 retreated from a record high, with the Dow Jones dropping 450 points. Retail giant Walmart’s weaker-than-expected earnings outlook weighed on major indices. Meanwhile, Atlanta Fed President Raphael Bostic projected two rate cuts in 2025 but warned of rising uncertainty.
On the economic front, US jobless claims increased by 5,000 to 219,000 last week, slightly above estimates. The four-week average stood at 215,300, while continuing claims rose by 24,000 to 1.869 million.
Bostic emphasized the Fed’s cautious stance, stating:
“While I expect two rate cuts in 2025, uncertainties could influence this outlook in either direction.”
Market Highlights
Tech Stocks:
- Broad declines in major tech stocks:
- Broadcom (-5%) | Nvidia (-3%) | Tesla, Meta (-2%)
- Amazon, Microsoft (-1%) | Apple edged higher
- Berkshire Hathaway B shares surged over 4%, marking its best daily performance since November, following a 71% jump in Q4 operating profits, driven by strong insurance revenue.
Chinese Stocks:
- Nasdaq Golden Dragon China Index fell 5.24%
- JD.com, New Oriental (-7%) | iQIYI (-7%) | Netease, Li Auto (-4%)
- Alibaba, Bilibili (-10%) | Futu (-9%) | Pinduoduo (-9%)
US Markets – Technical Analysis
US Markets Performance
- Dow Jones: ▲ 33.19 pts (+0.08%) to 43,461.21
- Nasdaq: ▼ 237.08 pts (-1.21%) to 19,286.92
- S&P 500: ▼ 29.88 pts (-0.50%) to 5,983.25
Hong Kong Markets Surge as Alibaba Leads
Hong Kong stocks rebounded after a weak open. Tech stocks were mostly lower, with:
- Alibaba, Bilibili (-5%) | Baidu (-2%) | Xiaomi bucked the trend, rising over 3%
- Li Auto soared 12%, leading the auto sector’s rally
DeepSeek-related stocks opened sharply lower but rebounded intraday. Analysts noted that the gradual expansion of the DeepSeek ecosystem could bring structural investment opportunities.
Hong Kong Market – Technical Analysis
Hong Kong Market Performance
- Hang Seng Index: ▼ 0.62% to 23,196.33
- Hang Seng Tech Index: ▼ 0.03% to 5,787.58
- China Enterprises Index: ▼ 0.50% to 8,575.60
Mainland China Markets Highlights
Mainland A-shares opened sharply lower but rebounded:
- Over 2,600 stocks declined amid cautious sentiment
- Gains: Consumer electronics & robotics stocks surged
- Leading stocks: Dahua Tech, Great Wall Motor (limit-up)
- Losses: Agriculture stocks retreated
- Key decliners: Yuan Longping, Muyuan Foods (-5%)
China Markets – Technical Analysis
China Indices Performance
- Shanghai Composite: ▼ 0.14% to 3,368.24
- Shenzhen Component: ▼ 0.29% to 10,951.57
- ChiNext Index: ▼ 0.32% to 2,259.04
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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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