U.S. Stocks
Fundamental Analysis:
U.S. stocks closed lower on Thursday, 22nd December 2022, led by the tech-heavy Nasdaq, which fell more than 2%, as investors worried that data showing the economy’s resilience would push the Federal Reserve’s rate-hike move to last longer.
Disappointment was exacerbated by Micron’s gloomy earnings test, causing the index of semiconductor stocks to run away from the broader market and post its biggest one-day loss in more than a month.
Growth stocks are sensitive to interest rates fell, with technology and consumer stocks taking the biggest hits among the 11 sectors in the S&P 500.
U.S. gross domestic product (GDP) grew at a final annualized rate of 3.2% in the third quarter from a year earlier, up from a previous estimate of 2.9%.
Meanwhile, the Labor Department said U.S. initial jobless claims rose to 216,000 last week, but were lower than economists’ estimate of 222,000.
A third report showed that the World Business Institute’s leading indicator, a measure of future U.S. economic activity, fell for the ninth consecutive month in November.
Recession fears associated with the Federal Reserve’s extended rate hike cycle have put heavy pressure on the stock market this year, with the indicator S&P 500 index poised for an annual decline of 19.8%, which would be the biggest drop since the 2008 financial crisis.
Before hitting the pause button, the Fed is expected to look for more signs of weakness in the labor market and the economy to lower inflation and keep it low.
The Philadelphia Semiconductor Index fell as much as 6% earlier in the session to close down 4.3%.
Micron’s equipment supplier Colin R&D closed down 8.7%, leading the sector lower throughout the session.
Tesla plunged 8.9% after the electric car maker doubled discounts on models supplied to the U.S. this month on concerns about weak demand.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow today pays attention to the 33233-line. If the Dow runs stably above the 33233-line, then pay attention to the suppression strength of the 33584 and 33949 positions.
Hong Kong Stocks
Fundamental Analysis:
U.S. stocks closed down overnight, the three major indices of Hong Kong stocks retreated in line with the trend, closing down collectively at noon.
The Hang Seng Index (HSI) was down 0.51%, the Hang Seng TECH Index (HSTECH) down 1.92%, and the Hang Seng China Enterprises Index (HSCEI) down 1.1%.
The half-day net southbound capital inflow was HK$2.925 billion, the market turnover was HK$44.4 billion.
On the market, large technology stocks retreated, NetEase, Inc. (9999.HK) and JD.com, Inc. (9618.HK) fell 2%, Meituan (3690.HK), Alibaba Group Holding Limited (9988.HK) and Bilibili Inc. (9626.HK) fell 1%, Tencent Holdings Limited (0700.HK) followed.
Dragged by the overnight Tesla plunge, auto stocks fell, XPeng Inc. (9868.HK) fell 4%.
Market worries about aggressive interest rate hikes, gold prices fell to a week low, gold stocks fell in general.
Internet medical stocks, tobacco stocks, semiconductor stocks, power stocks, photovoltaic solar stocks and other multi-stock collective decline.
In addition, education stocks surged strongly, Koolearn Technology Holding Limited (1797.HK) rose nearly 4% to a new record high.
CICC said the insurance industry has been at the end of the down cycle, insurance stocks are strong, AIA Group Limited (1299.HK) rose 3%.
Meanwhile, restaurant stocks, travel stocks, CRO stocks and other stocks are strong.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 18606-line today. If HK50 can run stably above the 18606-line, then pay attention to the suppression strength of the two positions of 19517 and 20467.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 12900-line today. If A50 runs stably below the 12900-line, pay attention to the support strength of the two positions of 12659 and 12273. If A50 runs above the 12900-line, it will open up further upside space.
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