U.S. stocks closed lower on Tuesday, with the Dow Jones dropping over 400 points, led by declines in tech stocks such as Apple.
Bitcoin experienced significant fluctuations.
This week, investors are closely watching Federal Reserve Chair Powell’s congressional testimony and the U.S. non-farm payroll data for February.
Before Tuesday’s steep decline, U.S. based stocks had been on a strong upward trend since the beginning of the year, driven by the surge in artificial intelligence and optimistic sentiments surrounding economic growth, pushing the S&P 500 index to repeatedly hit record highs.
The tech-heavy Nasdaq 100 index has been on the rise for four consecutive months.
Chris Montagu, a strategist at Citigroup, noted that the market trend “continues and becomes increasingly one-sided.” Long positions in Nasdaq futures are at very high levels, posing significant risks of profit-taking, as are positions in Europe and Japan’s Nikkei indices.
U.S. Stocks
Fundamental Analysis:
Most Chinese concept stocks experienced declines, with the Nasdaq Golden Dragon China Index dropping by 1.49%.
Tencent Music led the losses with a decline of over 6%, followed by iQiyi with over 5%. Netease, Baidu, Bilibili, and JD.com all dropped by over 2%.
Pinduoduo, Alibaba, and Baidu fell by over 3%, while Tencent Music dropped by over 2%. Netease saw a slight decline, while Futu Holdings had a marginal increase.
Large-cap tech stocks generally fell, with Intel dropping over 5%, Tesla nearly 4%, Microsoft and Apple nearly 3%, and Netflix and ASML over 2%.
Nvidia and AMD saw slight gains, with their stock prices hitting new closing highs.
Lithium battery and software application sectors saw significant declines, with GitLab dropping by over 20%, Aon by over 17%, Sociedad Química y Minera de Chile by over 7%, Broadcom by over 4%, and Shopify and Qualcomm by over 3%.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Nasdaq dropped by 267.92 points, or 1.65%, to close at 15,939.59 points.
- Dow Jones Industrial Average fell by 404.64 points, or 1.04%, to close at 38,585.19 points.
- S&P 500 index decreased by 52.30 points, or 1.02%, to close at 5,078.65 points.
Hong Kong Stock Market
Fundamental Analysis:
All three major indices in Hong Kong rose collectively.
In terms of performance, tech stocks led the gains, with JD Group rising by over 9%, Kuaishou by over 7%, and Meituan and Alibaba by over 4%.
Tencent and Baidu saw gains of over 3%. Gold stocks continued to rise, with Zijin Mining leading by nearly 5%.
Wind power stocks saw significant gains, with Longyuan Power rising by over 8%.
New energy vehicle stocks performed strongly, with XPeng rising by nearly 7%.
However, stocks related to the Apple concept bucked the trend, with Highwealth Electronic falling by over 4%.
Apple concept stocks bucked the trend, with Highwealth Electronic falling by over 4%. In recent news, Apple has faced consecutive setbacks.
Recently, the company was fined €1.8 billion by the EU, equivalent to approximately 14 billion yuan, for alleged abuse of app store rules. This marks Apple’s first anti-monopoly penalty and one of the EU’s largest fines against a tech company.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) rose by 2.33% to close at 16,539.01 points.
- Hang Seng Tech Index (HSTECH) increased by 3.79% to close at 3,449.79 points.
- Hang Seng China Enterprises Index (HSCEI.) rose by 2.75% to close at 5,715.71 points.
FTSE China A50 Index
Fundamental Analysis:
The three major A-share indices opened lower, with the Shanghai Composite briefly turning positive before trending downward.
During the first hour of the morning session, the Shenzhen Component and ChiNext boards fluctuated weakly, with both indices dropping by over 1% before rebounding. By mid-morning, all three indices were on the rise.
In terms of industry sectors, wind power equipment, photovoltaic equipment, motors, power grid equipment, and gas saw the highest increases.
Meanwhile, automobile manufacturers, insurance, cultural media, shipbuilding, and electronic chemicals saw the greatest declines.
Flying cars, BC batteries, HIT batteries, TOPCon batteries, ultra-high voltage, and smart grid themes were active.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index (SHCOMP) rose by 0.12% to close at 3,051.35 points.
- Shenzhen Component Index (SZCOMP) increased by 0.34% to close at 9,448.96 points.
- ChiNext Index (CHINEXT) rose by 0.65% to close at 1,845.57 points.
- SSE Sci-Tech Innovation 50 Index remained unchanged at 817.79 points.
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