The U.S. stocks saw mixed movements on Tuesday, with major indices hitting record highs before plateauing.
Investors remained focused on corporate earnings and awaited crucial Personal Consumption Expenditures (PCE) inflation data expected later this week.
At least 10 Federal Reserve officials are scheduled to speak this week.
Earnings reports continued to dominate market attention. The most significant economic data for the U.S. stock market this week is the Personal Consumption Expenditures (PCE) Price Index and personal income data set to be released on Thursday.
Investors are poised to use these figures to gauge the health of the U.S. economy and delve into the Federal Reserve’s monetary policy trajectory.
According to data from Deutsche Bank’s latest research, the financial strength of the “Big Seven” in the U.S. stock market has surpassed that of any stock market in the world.
Ross Mayfield, an analyst at Baird Investment Strategy, stated, “The PCE index could be a huge catalyst, leading the market to fluctuate significantly in either direction. So far, the PCE is the most important thing to watch.”
U.S. Stocks
Fundamental Analysis:
Popular Chinese concept stocks saw widespread gains, with the Nasdaq Golden Dragon China Index rising by 2.10%.
Ideal Automobiles surged by over 11%, while NetEase soared over 5%. iQIYI and Weibo both rose by over 4%, while Futu Holdings gained over 3%.
NIO and Full Truck Alliance rose by over 2%, and Xpeng, Alibaba, Bilibili, JD.com, Baidu, Pinduoduo, and Vipshop saw slight increases. Tencent Music saw a slight decline.
Large-cap tech stocks saw mixed movements. Netflix surged over 2% after demanding users change their payment methods through the Apple App Store.
Micron Technology also surged over 2%. Meta and AMD rose by over 1%, while Google and Apple saw nearly 1% increases. Apple reportedly ended its electric car project.
Meanwhile, Advanced Micro Devices dropped by nearly 3%, while United Microelectronics Corporation and Taiwan Semiconductor Manufacturing Company fell by over 2%, and NVIDIA, ASML, and MediaTek saw slight declines.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones Industrial Average fell by 96.82 points, or 0.25%, to close at 38,972.41.
- Nasdaq Composite rose by 59.05 points, or 0.37%, to close at 16,035.30.
- S&P 500 Index rose by 8.65 points, or 0.17%, to close at 5,078.18.
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong stocks opened high but closed low on Tuesday.
In the market, technology stocks generally declined, with NetEase bucking the trend with a rise of over 5%, while Meituan fell by over 2% and Tencent by over 1%.
Hong Kong property stocks collectively rallied, with New World Development surging nearly 6%.
Real estate stocks led the decline, with Country Garden falling by over 12%. Management stocks followed suit.
Automobile stocks generally fell, with Xpeng down nearly 3%, but Ideal continued its upward trend with a rise of nearly 4%.
Hong Kong’s economic growth accelerated in the fourth quarter, driving local consumption stocks higher.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) fell by 0.27% to close at 16,745.96.
- Hang Seng Tech Index (HSTECH) fell by 0.04% to close at 3,501.62.
- Hang Seng China Enterprises Index (HSCEI.) fell by 0.76% to close at 5,762.83.
FTSE China A50 Index
Fundamental Analysis:
The three major A-share indices opened high on Tuesday. In the first half-hour of trading, the market fluctuated upward, with the Shenzhen Component Index rising by over 1% and the Growth Enterprise Index rising by nearly 2%.
However, the indices turned green during trading. Of note, market trading volumes were significantly higher in the morning.
In terms of industry sectors, energy metals, education, securities, photovoltaic equipment, and diversified finance performed well, while electrical machinery, consumer electronics, semiconductors, auto parts, and instruments fell.
Themes such as artificial meat, brokerage firms, weight-loss drugs, and lithium extraction from salt lakes were relatively active.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index (SHCOMP) fell by 0.67% to close at 2,995.4.
- Shenzhen Component Index (SZCOMP) fell by 0.55% to close at 9,218.48.
- ChiNext Index (CHINEXT) fell by 0.3% to close at 1,788.64.
- SSE STAR Market 50 Index (SSE50) fell by 1% to close at 788.95.
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