U.S. stocks closed with mixed results on Tuesday, as the Dow Jones Industrial Average reached its highest intraday record in over a year, while the Nasdaq and S&P indices experienced slight declines.
The market is currently assessing a wave of corporate earnings releases, while the U.S. reported a more than two-year low in job vacancies for June. Investors are closely watching the upcoming non-farm payroll data on Friday.
U.S. Stocks
Fundamental Analysis:
During Tuesday’s trading session, the Dow surged to a high of 35,679.13 points, marking its highest intraday level since February 2022. The Job Openings and Labor Turnover Survey (JOLTS) report released on Tuesday revealed that job vacancies in the U.S. stood at 9.6 million in June, reaching the lowest level since April 2021. The number of layoffs in June remained nearly flat at 1.5 million compared to the previous month.
Analyst Christian Robles mentioned that the U.S. labor market is showing signs of new easing, and the slow reduction in job vacancies further indicates the Federal Reserve’s progress in cooling the economy and reducing inflation.
Large-cap technology stocks showed mixed performance, with Tesla and GlobalFoundries declining over 2%, and Amazon falling over 1%. On the positive side, AMD rose nearly 3% as its Q2 earnings exceeded expectations, and it predicted double-digit percentage growth in its data center business for Q3.
After-hours trading saw AMD’s stock price surge by over 5%. Broadcom also increased by over 2%. The term “room-temperature superconductivity” caught market attention as the U.S. Superconductor surged over 60%.
Banking, shipping, precious metals, and blockchain sectors experienced widespread declines, with Silicon Valley Bank plunging over 40%, Bank of America and Citigroup both falling over 1%, and Norwegian Cruise Line plummeting over 12%.
Major airlines such as American Airlines, Delta Air Lines, and Southwest Airlines also followed the downtrend, while gold miners, including Kinross Gold, Heckler, Coeur Mining, and U.S. Gold, experienced declines.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones Industrial Average closed higher by 71.15 points, a gain of 0.20%, at 35,630.68 points, continuing to achieve recent closing highs.
- Nasdaq Composite closed lower by 62.11 points, a decline of 0.43%, at 14,283.91 points.
- S&P 500 Index closed lower by 12.23 points, a decline of 0.27%, at 4,576.73 points.
Hong Kong Stocks
Fundamental Analysis:
Hong Kong stocks closed lower across all three major indices on Tuesday, influenced by the negative impact of the U.S. debt rating downgrade news. The Hang Seng Index opened lower by 108 points and briefly narrowed its losses to only 30 points, closing at 19,981 points, reaching its high of the day.
However, the index gradually expanded its losses and reached a low of 19,558, down by a maximum of 452 points. Similarly, the Hang Seng Tech Index also opened lower and extended its losses to a low of 4,399, down by a maximum of 138 points. The indices continued to trade sideways near their lows.
In the market, internet-related stocks faced a general decline, with Bilibili Inc. (9626.HK), Kuaishou Technology (1024.HK), Meituan (3690.HK), and Baidu, Inc. (9888.HK) all falling over 3%.
The automobile sector witnessed a collective slump, with XPeng Inc. (9868.HK) falling over 8% and NIO Inc. (9866.HK) dropping over 6%. Conversely, property management stocks bucked the trend, with Country Garden Services Holdings Company Limited (6098.HK) surging over 18%. Most banking stocks declined, with Hang Seng Bank experiencing a significant drop of over 4%.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index closed lower by 1.99%, at 19,613.51 points, falling below the 20,000 mark.
- Hang Seng China Enterprises Index declined by 2.14%.
- Hang Seng Tech Index experienced a 2.56% decline.
FTSE China A50 Index
Fundamental Analysis:
A-shares in China collectively opened lower, but the market experienced early trading volatility. The Shenzhen Component and ChiNext Indexes briefly turned positive before sliding again, while the Shanghai Composite Index witnessed relatively larger losses.
The CSI 50 Index, however, displayed independent performance from the broader market and saw a slight increase after early probing. The combined trading volume of the Shanghai and Shenzhen stock markets was 5395.83 billion yuan, and northbound capital saw a net outflow of 3.486 billion yuan.
Among individual stocks, 17 rose to the daily limit (including ST stocks), while none hit the lower limit.
Industry sectors leading in gains included real estate development, securities, diversified financials, real estate services, and electronic chemicals, while shipbuilding, biotechnology, education, medical services, and banking were among the sectors with the biggest losses.
In terms of themes, fluid compound gathering, superconductors, reducers, and securities concepts showed active performance.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index closed lower by 0.84%, at 3,263.20 points.
- Shenzhen Component Index closed lower by 0.42%, at 11,096.77 points.
- ChiNext Index closed lower by 0.27%, at 2,217.72 points.
- SSE STAR 50 Index closed lower by 0.1%, at 968.75 points.
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