On Monday, U.S. stocks closed mixed. The Dow Jones fell about 200 points, while the Nasdaq reached a record high.
This week’s market focus is on Nvidia’s earnings report and Microsoft’s Build developer conference. The Federal Reserve will release the minutes from its latest monetary policy meeting on Wednesday.
Gene Munster, a veteran tech analyst and managing partner at Deepwater Asset Management, predicted that the bullish trend in U.S. stocks could continue for the next three to five years, eventually ending in a significant bubble burst.
Tom Lee, head of research at Fundstrat Global Advisors, suggested that the market rebound might persist in the short term. “As we noted earlier this month, the market is likely to shift from fear of May to buying opportunities. We expect this trend to continue into next week,” he stated.
US Stocks
Fundamental Analysis:
Most major tech stocks rose, with Nvidia up over 2%, and Microsoft and AMD up over 1%. Tesla dropped more than 1%.
The metals and mining, semiconductor equipment, and materials sectors saw significant gains.
Century Aluminum surged over 5%, while Alcoa, Southern Copper, KLA Corporation, and Pan American Silver rose over 3%. Micron Technology, Qualcomm, and NXP Semiconductors gained over 2%.
Most popular Chinese stocks fell, with the Nasdaq Golden Dragon China Index down 1.65%.
Li Auto plunged nearly 13%, iQiyi fell almost 5%, and Vipshop, Bilibili, and Weibo dropped over 3%. Futu Holdings declined more than 2%, while Baidu, JD.com, and Nio fell over 1%.
Tencent Music, Alibaba, XPeng, NetEase, and Full Truck Alliance saw slight declines. Pinduoduo managed a slight gain.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Nasdaq: Up 108.91 points (0.65%) to 16,794.87
- Dow: Down 196.82 points (0.49%) to 39,806.77
- S&P 500: Up 4.86 points (0.09%) to 5,308.13
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s major indices opened lower and continued to decline.
Tech stocks broadly fell, with NetEase, Baidu, JD.com, and Tencent dropping over 3%.
Automotive stocks also took a hit, with Li Auto’s Q1 net profit falling over 30%, causing its stock to drop more than 19%.
Virtual currency stocks rose collectively, with New Huo Technology Holdings up over 7%.
Gold and copper sectors pulled back, with Shandong Gold down over 6%. Restaurant stocks led the decline, with Helen’s Group falling over 8%.
Virtual currency stocks surged, with New Huo Technology Holdings rising over 7%.
The U.S. inflation data released last week injected optimism about potential rate cuts, boosting safe-haven assets and reversing Bitcoin’s previous slump to rise above $70,000.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index: Down 2.05% to 19,234.33
- Hang Seng Tech Index: Down 3.18% to 4,003.81
- Hang Seng China Enterprises Index: Down 1.94% to 6,829.64
FTSE China A50 Index
Fundamental Analysis:
Chinese A-shares declined, with cyclical stocks like non-ferrous metals adjusting collectively, while AI PC concepts strengthened.
The consumer electronics sector saw collective gains, with AI PCs, copper foil, pork, and tourism sectors leading the rise.
The banking sector strengthened, with Shanghai Rural Commercial Bank leading the gains.
On the downside, non-ferrous metal stocks pulled back, with Feinan Resources and Hunan Gold falling over 7%.
The defense sector weakened, with ST Reiko falling by the 20% limit. Oil and gas stocks also declined, with Tongyuan Petroleum dropping over 5%.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index: Down 0.41% to 3,158.03
- Shenzhen Component Index: Down 0.56% to 9,696.17
- ChiNext Index: Down 0.62% to 1,864.23
- STAR 50 Index: Down 0.35% to 750.88
Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.
Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.
