US stocks closed mixed on Monday. The Dow Jones Industrial Average fell over 100 points amid concerns about the economy sparked by weak US manufacturing data. This pressure weighed on bank and industrial stocks, which depend on economic growth.
Notably, oil prices also dropped significantly. Investors are now focusing on the upcoming May nonfarm payroll report due on Friday.
AI chip leader Nvidia rose 4.9%, reaching a new all-time high with a market cap exceeding $280 billion. Reports indicate the company will launch its Blackwell Ultra chip next year. Nvidia’s stock has been on an upward trajectory since releasing its highly anticipated earnings report last month, surpassing $1,100 per share and hitting a market cap of over $2.8 trillion. However, the stock saw a decline in the last two days of May.
Sam Van, founder and CEO of SRO Partners, commented on potential technical issues related to the U.S. transitioning to a T+1 settlement period. “T+1 increases market efficiency. While high liquidity stocks may settle more easily, low liquidity stocks could face unexpected challenges. Rapid and efficient market operations could potentially trigger flash crashes,” he said.
US Stocks
Fundamental Analysis:
Large-cap tech stocks were mixed. Nvidia surged nearly 5%, hitting another record closing high. Meta rose over 2%, Amazon over 1%, with slight gains for Google and Apple.
Conversely, Netflix, Tesla, and Intel fell over 1%, while Microsoft saw a minor decline. Among WSB favorite stocks, GameStop jumped over 21%, and AMC Theatres rose over 11%.
Most popular Chinese stocks fell, with the Nasdaq Golden Dragon China Index down 0.35%. Weibo and Tencent Music dropped over 3%, iQiyi and XPeng Motors fell over 2%, and Pinduoduo and Baidu decreased by over 1%.
Slight declines were seen in Nio, Futu Holdings, NetEase, Alibaba, and Full Truck Alliance. In contrast, Vipshop and Bilibili gained over 1%, with modest gains for Li Auto and JD.com.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones: Down 115.29 points, or 0.30%, at 38,571.03
- Nasdaq: Up 93.65 points, or 0.56%, at 16,828.67
- S&P 500: Up 5.89 points, or 0.11%, at 5,283.40
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s major indices edged up slightly. Tech stocks were mostly down, with Xiaomi and Baidu falling 1%, and declines for NetEase and Alibaba. Meituan rose over 4%, and Tencent gained 0.59%.
Property stocks strengthened, with Jinke Properties surging over 27%. Pharmaceutical outsourcing stocks rebounded, led by Genscript Biotech, which rose over 9%. Oil stocks tumbled, with CNOOC, Sinopec, and PetroChina all down nearly 2%.
Oil stocks were down as CNOOC, Sinopec, and PetroChina fell nearly 2%. Goldman Sachs recently raised its global oil demand forecast for 2030, predicting peak consumption by 2034 due to a potential slowdown in electric vehicle adoption. Refinery capacity utilization is expected to remain above average until the late 2020s.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index: Up 0.21%, at 18,441.59
- Hang Seng Tech Index: Up 0.06%, at 3,786.27
- Hang Seng China Enterprises Index: Up 0.22%, at 6,546.58
FTSE China A50 Index
Fundamental Analysis:
Mainland China’s A-shares rose after a weak start, with real estate and non-ferrous metals stocks rebounding.
The real estate sector bounced back, with Xiangjiang Holdings hitting the daily limit, and gains of over 5% for Xinhu Zhongbao and Gemdale Corporation.
Central enterprise stocks performed well, with China National Materials Co. hitting the daily limit and China Automotive Systems gaining over 5%.
Non-ferrous metal stocks climbed, with Yulong Co. and Huaxi Industrial Holdings up over 5%. ST stocks were active, with Supply and Marketing Group and Huadian Thermal Power hitting the daily limit.
However, stocks that received annual report inquiries continued to fall, with Lianjian Optoelectronics and Hengxin Oriental hitting the 20CM limit down.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index: Down 0.02%, at 3,077.89
- Shenzhen Component Index: Up 0.51%, at 9,417.99
- ChiNext Index: Up 0.87%, at 1,835.30
- STAR Market 50 Index: Down 0.06%, at 749.99
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