The U.S. stocks saw modest gains on Monday.
Despite market optimism surrounding the potential conclusion of the Federal Reserve’s rate-hike cycle, rising Treasury yields limited the extent of the stock market’s upward movement.
Investors remained attentive to developments in bond yields and corporate earnings.
On Monday, U.S. Treasury yields rebounded, with the 10-year U.S. Treasury yield rising by 9.1 basis points to 4.649%, reaching an intraday high of 4.668%. The upswing in Treasury yields acted as a constraint on stock market gains.
A few weeks ago, U.S. Treasury yields had reached multi-year highs as investors braced for a sustained period of tight monetary policy by the Federal Reserve.
Historical patterns suggest that such a scenario often has a negative impact on the stock market.
U.S. Stocks
Fundamental Analysis:
Most major tech stocks recorded gains, with Apple, NVIDIA, and Microsoft rising by over 1%. Meta, Google, Netflix, and Amazon experienced slight increases, while Tesla saw a minor dip.
Berkshire Hathaway reported a net loss of $12.77 billion for the third quarter, primarily due to an 11.7% drop in Apple’s stock price during the same period.
Chinese concept stocks displayed mixed performance, with the Nasdaq China Golden Dragon Index declining by 0.05%.
Ideal Motors and Futu Holdings recorded gains of over 8% and 4%, respectively.
Companies like XPeng Motors, Weibo, Pinduoduo, JD, Tencent Music, and Alibaba experienced marginal increases.
NIO dropped by more than 3%, while companies like Vipshop, iQiyi, Manbang, Baidu, and NetEase declined by over 1%. Bilibili saw a minor decrease.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones Industrial Average increased by 34.54 points, a 0.10% increase, closing at 34,095.86 points.
- Nasdaq Composite Index (Nasdaq) increased by 40.50 points, a 0.30% increase, closing at 13,518.78 points.
- S&P 500 Index increased by 7.64 points, a 0.18% increase, closing at 4,365.98 points.
Hong Kong Stocks
Hong Kong’s major indices opened lower and continued on a downward trajectory.
Among core technology stocks, Bilibili, JD Group, Baidu Group, Alibaba, and Kuaishou all experienced declines of over 2%, while Tencent Holdings and Meituan fell by over 1%.
Automotive stocks observed a general retreat, with NIO dropping by more than 5%.
Real estate and property management stocks also dipped, with Sun Hung Kai Properties Group declining by over 6%.
Sports equipment stocks saw notable declines, with Li-Ning falling by more than 5%.
Semiconductor-related stocks, like Shanghai Huahong Semiconductor, dropped by over 3%.
On the other hand, biotechnology and pharmaceutical stocks saw gains, with Joinn Laboratories surging by over 17%.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) decreased by 1.50%, closing at 17,696.57 points.
- Hang Seng Tech Index (HSTECH) decreased by 1.41%, closing at 4,040.81 points.
- Hang Seng China Enterprises Index (HSCEI) decreased by 1.59%, closing at 6,084.04 points.
FTSE China A50 Index
Fundamental Analysis:
In the early morning session, A-shares in China’s three major indices started with minor declines.
Within the first half-hour, the market experienced weak fluctuations, with brokerage stocks remaining active.
The Shanghai Composite Index showed a slight rebound in subsequent trading, while the Shenzhen Component Index and the Growth Enterprise Market (GEM) Index traded sideways at lower levels.
In terms of industry sectors, optical electronics, education, consumer electronics, paper printing, and computer equipment were among the top gainers, while insurance, tourism, precious metals, energy metals, and aviation and airport stocks saw notable declines.
Notable themes included electronic rearview mirrors, computing power, tire pressure monitoring, Chiplet concepts, and automotive thermal management.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index (SHCOMP) decreased by 0.35%, closing at 3,047.6 points.
- Shenzhen Component Index (SZCOMP) decreased by 0.57%, closing at 10,013.78 points.
- ChiNext Index (CHINEXT) decreased by 0.96%, closing at 2,012.81 points.
- SSE STAR Market 50 Index (SSE50) decreased by 0.67%, closing at 884.22 points.
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