U.S. stock market closed lower on Thursday. A sharp decline in star stocks such as Nvidia and Google put pressure on the indices.
The Dow Jones fell by over 530 points, continuing its downward trend for the fourth trading day in a row.
Ahead of the non-farm payroll data release on Friday, soaring crude oil prices and concerns that the Federal Reserve might delay interest rate cuts further intensified market anxieties.
On Thursday, U.S. WTI crude oil prices rose by 1.4%, breaking the $86 mark and reaching the highest price since October. This has raised investor concerns that rising energy prices might accelerate inflation once again.
Worries over the geopolitical situation in the Middle East also contributed to the U.S. stock market’s decline on Thursday.
Analyst Adam Button noted that market sentiment shifted dramatically after noon as talks of Iran’s retaliatory actions against Israel began to dominate.
U.S. Stock Market
Fundamental Analysis:
Large tech stocks fell across the board: Google dropped nearly 3%, Netflix fell more than 2%, Amazon over 1%, and both Apple and Microsoft saw minor declines.
Semiconductor stocks also saw widespread losses, with AMD plummeting over 8%, marking its largest single-day drop since May 3, 2023.
Nvidia, Broadcom, and Micron Technology fell more than 3%, while ASML, ARM, TSMC, and Intel dropped over 1%. Tesla, however, bucked the trend with a gain of more than 1%.
The majority of popular Chinese concept stocks declined, with the Nasdaq China Golden Dragon Index down 1.50%, Kingsoft Cloud dropping more than 3%, and companies like Li Auto, Bilibili, and Trip.com falling more than 2%.
Pinduoduo and JD.com fell over 1%, while NIO, KE Holdings, and Baidu saw slight increases.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Nasdaq fell 228.38 points, or 1.40%, to 16,049.08.
- Dow Jones dropped 530.16 points, or 1.35%, to 38,596.98.
- S&P 500 Index declined by 64.28 points, or 1.23%, to 5,147.21.
Hong Kong Stock Market
Fundamental Analysis:
Today, the Hong Kong stock market started high but trended lower by noon.
Most sectors saw declines, with pharmaceutical and technology stocks leading the losses.
Among the Hang Seng Index constituents, WuXi AppTec fell by more than 5%, with Longfor Group, Country Garden Services, Mengniu Dairy, WuXi Biologics, and Zhongsheng Group dropping over 4%.
China Biologic Products and China Resources Power saw declines over 3%, while Xinyi Solar Holdings and Techtronic Industries, along with HSBC Holdings, climbed over 2%.
In the Hang Seng Tech Index, SenseTime fell more than 7%, Ali Health over 5%, and Hua Hong Semiconductor over 4%, with Bilibili, Ping An Healthcare and Technology, Sunny Optical Technology, Eastern Selection, and JD Health dropping more than 3%.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) fell by 0.71% to 16,606.26.
- Hang Seng Tech Index (HSTECH) dropped by 1.27% to 3,416.97.
- Hang Seng China Enterprises Index (HSCEI.) declined by 1.11% to 5,810.05.
FTSE China A50 Index
The A-share market will be closed from April 4 to April 6 due to the Qingming Festival holiday, resuming normal trading on April 8.
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