U.S. Stocks
Fundamental Analysis:
The S&P 500 closed lower for a fourth straight session on Wednesday, 22nd February 2023, as investors remained cautious despite the Federal Reserve’s latest guidance on interest rate policy, which contained few surprises.
The vast majority of Fed policymakers agreed at their last policy meeting to slow the pace of hikes in the benchmark overnight rate to 25 basis points, but also said the risk of higher inflation remained a “key factor” affecting monetary policy, meaning, until inflation is brought under control, it will be necessary to continue raising borrowing costs.
In the final hour before the close, widespread weakness dragged the S&P 500 and the Dow Jones Industrial Average back to losses.
The Nasdaq finally managed to close higher, snapping a three-day losing streak.
Following the market slump in 2022, the three major indexes posted monthly gains in January on hopes that the Federal Reserve will pause rate hikes and may switch to rate cuts around the end of the year.
Stocks, however, were volatile in February as inflation remained elevated amid a strong economy and interest rates were expected to rise higher and longer.
Most of the 11 major S&P 500 sectors were down, with energy and real estate the worst performers, down 0.8% and 1%, respectively.
The energy index has closed lower for seven consecutive sessions, as concerns about future economic growth and fuel demand weighed on commodity prices.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow pays attention to the 33233-line today. If the Dow runs stably above the 33233-line, then pay attention to the suppression strength of the 33390 and 33584 positions.
Hong Kong Stocks
Fundamental Analysis:
The three major indices of Hong Kong stocks opened collectively lower.
The Hang Seng Index (HSI) fell 0.41% to 20,339.15 points, the Hang Seng TECH Index (HSTECH) fell 0.25% to 4,090.38 points, the Hang Seng China Enterprises Index (HSCEI) fell 0.38% to 6,806.63 points.
On the market, most of the large technology stocks fell, JD.com, Inc. (9618.HK), and Baidu, Inc. (9888.HK) fell nearly 3%. Kuaishou Technology (1024.HK), and Meituan (3690.HK) are down, while Xiaomi bucked the trend up 1.5%.
Semiconductor stocks fell significantly, Shanghai Fudan Microelectronics Group Company Limited (1385.HK) fell more than 3%, gas stocks, restaurant stocks, home appliances, sporting goods stocks have gone lower.
On the other hand, coal stocks were active, Yankuang Energy Group Company Limited (1171.HK) rose 2.77%, China Coal Energy Company Limited (1898.HK) rose 2.53%, China Shenhua Energy Company Limited (1088.HK) rose 2.09%, while biotechnology stocks, and Apple concept stocks were partly up.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 21450-line today. If HK50 can run stably above the 21450-line, then pay attention to the suppression strength at the two positions of 22127 and 22785.
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