The U.S. stock market closed lower on Tuesday, with both the Dow Jones Industrial Average and the S&P 500 Index experiencing their third consecutive trading day of declines.
The previous momentum of reaching new highs is gradually cooling off.
This week, the market is focused on the PCE inflation index and the Federal Reserve’s interest rate cut prospects.
Analysts at Bank of America released an optimistic research report, suggesting that the main theme of the U.S. stock market until 2030 will be an “epic long bull market.”
The report states that the current long-term bull market in U.S. stocks is about to enter its 11th year, and more importantly, from a technical analysis perspective, the S&P 500 Index is expected to continue to rise strongly over the next few years, thereby fully extending the trend of the “epic long bull market.”
Bank of America predicts that this round of “long bull market” is expected to continue until around 2030, and expects the S&P 500 Index to rise to 7000 points by the end of 2026.
U.S. Stock Market
Fundamental Analysis:
Large-cap technology stocks saw mixed movements, with Tesla gaining nearly 3%. Elon Musk announced on Twitter that starting this week, all Tesla models equipped with “Full Self-Driving” (FSD) systems in the United States will have a one-month free trial of FSD.
Netflix, Google, and Intel saw slight gains, while Arm fell by over 7%. Nvidia surged by over 6%, following a meeting between Wang Wentao, Minister of Commerce, and Sanjay Mehrotra, President and CEO of Nvidia, where they discussed Nvidia’s development in China.
Popular Chinese stocks mostly trended downwards, with the Nasdaq Golden Dragon China Index falling by 0.55%.
Companies like Vipshop, Bilibili, and NIO fell by over 2%, while Baidu, JD.com, and Futu Holdings declined by over 1%.
Tencent Music, XPeng Motors, and iQIYI saw slight declines. Weibo rose by over 2%, while NetEase, Manbang, Li Auto, Pinduoduo, and Alibaba saw modest gains.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Nasdaq fell by 68.77 points, a decrease of 0.42%, closing at 16,315.70 points.
- Dow Jones fell by 31.31 points, a decrease of 0.08%, closing at 39,282.33 points.
- S&P 500 Index fell by 14.61 points, a decrease of 0.28%, closing at 5,203.58 points.
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s three major indexes initially rose but later fell.
In the market, technology stocks generally fell, with Baidu dropping by nearly 5%, JD.com by nearly 3%, and Xiaomi and Alibaba by over 2%.
Tencent rose by over 2%. Automotive stocks collectively declined, with Zeekr falling by over 8% and XPeng by over 5%.
Some Apple concept stocks saw declines, with Sunny Optical Technology falling for the fifth consecutive trading day.
After its earnings report, Wanko Data plummeted by 30%.
Gold stocks collectively rose against the trend, with Zijin Mining rising by over 5%, and property management, coal, photovoltaics, and mobile gaming sectors all seeing gains.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) fell by 0.63%, closing at 16,512.92 points.
- Hang Seng Tech Index (HSTECH) fell by 1.66%, closing at 3,413.74 points.
- Hang Seng China Enterprises Index (HSCEI.) fell by 0.90%, closing at 5,773.20 points.
FTSE China A50 Index
Fundamental Analysis:
A-shares’ three major indexes opened mixed, with the Shanghai Composite Index falling below 3000 points, while the Shenzhen Component Index and the ChiNext Index both fell by over 1%.
In terms of industry sectors, precious metals, Chinese medicine, food and beverage, chemical pharmaceuticals, and banking sectors rose.
Meanwhile, internet services, electronic chemicals, communication services, consumer electronics, gaming, and semiconductor sectors fell.
NMN concept, dairy, vitamins, flu, innovative drugs, and gold concepts were relatively active.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index (SHCOMP) fell by 0.52%, closing at 3,015.74 points.
- Shenzhen Component Index (SZCOMP) fell by 1.25%, closing at 9,331.32 points.
- ChiNext Index (CHINEXT) fell by 1.46%, closing at 1,814.61 points.
- SSE Sci-Tech Innovation 50 Index fell by 1.12%, closing at 763.42 points.
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