US stocks closed mixed on Thursday. The Dow Jones Industrial Average fell for the third consecutive day, dropping over 100 points. Meanwhile, the Nasdaq and S&P 500 both recorded their fourth consecutive day of gains, each hitting new all-time highs.
Recent CPI and PPI data indicate that inflation pressures are easing. Investors continue to assess the Federal Reserve’s latest rate decision and corporate earnings reports.
Dave & Buster’s Entertainment shares plummeted as the company’s first-quarter revenue missed expectations. The market is still evaluating the Fed’s future monetary policy path.
On Wednesday, the Fed announced that it would keep rates unchanged and suggested only one rate cut in 2024, a shift from its March forecast of three rate cuts this year. James McCann, Deputy Chief Economist at abrdn, noted, “The Fed’s decision was expected, but it keeps the door open for a rate cut this year. The downside surprise in CPI inflation is more encouraging, though market expectations for multiple rate cuts this year remain.”
US Stocks
Fundamental Analysis:
Major tech stocks showed mixed performance. Nvidia rose over 3%, Tesla over 2%, while Apple, Microsoft, and Netflix posted modest gains.
Amazon and Google fell over 1%, with Meta also slightly down. Apple closed with a market cap of $3.29 trillion, reclaiming the top spot from Microsoft at $3.28 trillion.
Nvidia, Apple, and Microsoft all hit new closing highs and now rank as the top three companies globally by market cap, each exceeding $3 trillion.
Popular Chinese stocks had a mixed day. The Nasdaq Golden Dragon China Index rose 0.28%.
Bilibili jumped over 7%, Full Truck Alliance over 4%, Tencent Music over 3%, Li Auto over 2%, and Weibo over 1%, with Pinduoduo posting small gains. However, Vipshop fell over 4%, Futu Holdings over 2%, XPeng Motors over 1%, with minor losses for NIO, iQiyi, Alibaba, NetEase, JD.com, and Baidu.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones fell 65.11 points, down 0.17%, closing at 38,647.10.
- Nasdaq rose 59.12 points, up 0.34%, closing at 17,667.56.
- S&P 500 increased by 12.71 points, up 0.23%, closing at 5,433.74.
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s major indices closed lower. Tech stocks broadly declined, with Alibaba down over 2%, and JD.com, Meituan, and Xiaomi each down over 1%. Biotech outsourcing stocks were among the biggest losers, with Tigermed falling over 7%.
Local consumer stocks weakened, with Chow Tai Fook dropping nearly 8%. In contrast, consumer electronics stocks rose, led by Smoore International up over 8%. Shipping stocks also performed well, with COSCO Shipping Ports up over 5%.
Wind power stocks were active, with China Longyuan Power up nearly 4%. The Central Meteorological Observatory has issued high-temperature warnings for seven consecutive days, with heatwaves reaching 40°C in northern regions, potentially leading to a surge in electricity demand.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index fell 0.67%, closing at 17,991.04.
- Hang Seng Tech Index fell 0.91%, closing at 3,705.27.
- Hang Seng China Enterprises Index fell 0.52%, closing at 6,388.47.
FTSE China A50 Index
Fundamental Analysis:
China’s A-shares showed mixed performance in the morning session, with property stocks gaining while CRO and new tech stocks on the STAR Market declined.
Sector-wise, real estate development, real estate services, communication equipment, hotels and restaurants, and home appliances showed gains, along with CPO, F5G, flexible DC transmission, high-voltage fast charging, equal rights for rental and sale, and high-speed copper cable concepts.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index fell 0.37%, closing at 3,017.67.
- Shenzhen Component Index fell 0.33%, closing at 9,176.01.
- ChiNext Index fell 0.74%, closing at 1,764.63.
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