U.S. stocks closed mixed on Friday, with all three major indices recording weekly gains.
The Dow closed above the 40,000 mark for the first time. The market is assessing hawkish comments from several Federal Reserve officials and the Fed’s monetary policy outlook.
This week, U.S. traders closely monitored Fed officials’ speeches and future monetary policy signals. Several Fed officials made hawkish statements, suggesting that higher borrowing costs should be maintained for a longer period and expressing the need for more evidence that inflation is easing.
JPMorgan CEO Jamie Dimon issued another warning about inflation, saying it is more severe than expected. He stated that the market is underestimating how long inflation might persist, as various factors will continue driving prices higher. “I believe underlying inflation may not disappear as quickly as people anticipate,” he said.
US Stocks
Fundamental Analysis:
Major tech stocks had mixed performances. Nvidia fell nearly 2%, while Tesla, Google, and AMD rose over 1%.
Precious metals, industrial metals, and mining sectors led the gains, with U.S. Gold Corporation up over 11%, Pan American Silver up over 5%, Southern Copper up over 4%, and Century Aluminum up over 3%.
The semiconductor and solar sectors declined, with ARM dropping over 3%, and Micron Technology and Navitas Semiconductor falling over 2%. Faraday Future fell over 37% but was up more than 21 times for the week.
Popular Chinese stocks mostly rose. The Nasdaq Golden Dragon China Index increased by 0.38%, posting a weekly gain of 6.53%. FangDD surged 321.26%, Full Truck Alliance rose over 4%, Futu Holdings over 3%, and JD.com, Bilibili, and Alibaba gained over 2%.
Pinduoduo rose over 1%, while Vipshop, NetEase, XPeng Motors, and Nio saw slight gains. iQiyi fell over 9%, Weibo over 3%, and Baidu and Li Auto fell over 1%, with Tencent Music slightly down.
Haidilao’s overseas subsidiary, Special Sea International, gained nearly 14% on its first trading day, closing with a market value of $1.441 billion.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Nasdaq: Down 12.35 points (-0.07%) at 16,685.97
- Dow: Up 134.21 points (+0.34%) at 40,003.59
- S&P 500: Up 6.17 points (+0.12%) at 5,303.27
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s major indices rose. Tech stocks had mixed performances, with JD.com up over 3% and Baidu down nearly 3%.
Precious metals, including gold, silver, and copper, saw significant gains. Lingbao Gold rose over 10%, China Silver Group surged nearly 50%, and MMG was up over 6%.
Automotive and lithium stocks led the gains, with XPeng up nearly 8% and Ganfeng Lithium up over 5%.
Real estate stocks had mixed results, with Vanke up nearly 6% and Sino-Ocean down nearly 5%. Other sectors, such as casinos, entertainment, and sports goods, also rose.
Gold stocks surged, with Lingbao Gold up over 10%. Spot gold rose over 1% during the day, reaching a high of $2,440.69 per ounce, breaking the historical high of $2,431.43 per ounce set in April.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index: Up 0.49% at 19,650.18
- Hang Seng Tech Index: Up 0.61% at 4,137.84
- Hang Seng China Enterprises Index: Up 0.42% at 6,963.50
FTSE China A50 Index
Fundamental Analysis:
Mainland Chinese A-shares opened higher but retreated by midday, with the Shanghai Composite up 0.38%, supported by strong performances in the non-ferrous metals and tourism sectors.
Sector Performance: Leading sectors included precious metals, civilian explosives, tourism, and pork. Sectors that declined included high-speed copper cable connections, home light industry, small appliances, and textiles.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite: Up 0.3% at 3,166.07
- Shenzhen Component: Up 0.10% at 9,719.56
- ChiNext Index: Up 0.21% at 1,868.78
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