U.S. stock indices ended lower on Tuesday, with the Nasdaq and S&P indices concluding a five-day winning streak.
The Federal Reserve meeting minutes indicated the necessity of maintaining restrictive monetary policies.
The market currently shows increasing bets on a Fed interest rate cut.
Housing price surges drove U.S. home sales in October to a 13-year low.
The Fed released the minutes from the Federal Open Market Committee (FOMC) meeting held from October 31st to November 1st.
During this meeting, the Fed skipped a rate hike for the second consecutive time.
The minutes revealed a unanimous view among Fed officials to “proceed cautiously” on rate matters, linking any tightening in monetary policy to developments in combating inflation.
The minutes stated, “All participants agreed that the Committee should proceed cautiously, with each meeting’s policy decisions based on a comprehensive assessment of the information.”
Despite robust consumer spending and hiring data, the Fed kept the benchmark interest rates unchanged in the range of 5.25% to 5.5% during that meeting.
U.S. Stock Market
Fundamental Analysis:
Nvidia’s stock price initially rose and then fell after-hours, dropping by over 3%.
Despite far exceeding expectations for the third quarter performance, the company anticipates a significant drop in its fourth-quarter sales in China.
Popular Chinese concept stocks experienced widespread declines, with the Nasdaq Golden Dragon China Index dropping by 2.23%.
iQIYI dropped over 9%, while XPeng, VIPShop, NIO, Full Truck Alliance, Futu Holdings, and Li Auto fell over 3%.
Tencent Music, Bilibili, Weibo, fell over 2%, and NetEase, JD.com, and Pinduoduo fell over 1%.
Baidu surged over 1%, and Alibaba saw a slight increase.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones Industrial Average fell by 62.75 points, a 0.18% decrease, closing at 35,088.29 points.
- Nasdaq Composite Index dropped by 84.55 points, a 0.59% decrease, closing at 14,199.98 points.
- S&P 500 Index declined by 9.19 points, a 0.19% decrease, closing at 4,538.19 points.
Hong Kong Stock Market
The three major Hong Kong indices closed mostly flat.
In the market, most real estate stocks continued to rise, with China Evergrande Group increasing nearly 4%, while some automotive stocks witnessed gains, with XPeng Motors rising over 3%.
Core tech stocks generally rose, led by Baidu’s over 5% increase.
Ahead of the U.S. market opening on November 21st, Baidu released its 2023 third-quarter financial report.
The report indicated that Baidu’s third-quarter revenue reached 34.4 billion yuan, a 6% year-over-year increase, surpassing market estimates of 34.21 billion yuan.
Baidu’s net profit (non-GAAP) attributable to Baidu reached 7.3 billion yuan, a 23% year-over-year increase.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) dropped by 0.08%, closing at 17,720.18 points.
- Hang Seng Tech Index (HSTECH) fell by 0.11%, closing at 4,032.80 points.
- Hang Seng China Enterprises Index (HSCEI) remained unchanged, closing at 6,076.63 points.
FTSE China A50 Index
Fundamental Analysis:
On November 22nd, the three major A-share indices opened collectively lower.
After the opening, the market fluctuated downward, with the ChiNext Index falling by over 1%.
Conversely, after the previous high-rebound surged, the Northbound 50 Index once again rose after opening, reaching over a 5% increase at one point.
In terms of industry sectors, commercial department stores, engineering consulting services, cultural media, tourism hotels, real estate development, and diversified finance saw the most gains.
Energy metals, motors, wind power equipment, electronic chemicals, and photovoltaic equipment faced the most declines.
Themes like short interactive games, radio, film concepts, data elements, and pig-related concepts were active.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index (SHCOMP) dropped by 0.29%, closing at 3,059.16 points.
- Shenzhen Component Index (SZCOMP) fell by 0.82%, closing at 9,914.92 points.
- ChiNext Index (CHINEXT) declined by 1.05%, closing at 1,963.5 points.
- SSE STAR Market 50 Index (SSE50) dropped by 0.84%, closing at 877.5 points.
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