On Monday, U.S. stocks began the day with some uncertainty.
The Dow Jones initially dropped by 153.89 points, the S&P 500 index experienced a brief 0.6% dip, and the Nasdaq faced a more substantial 1.15% decline.
However, all three major indices gradually recovered as the market shifted its focus away from concerns related to the Israel-Palestine conflict and rising oil prices, and instead redirected its attention to inflation and Federal Reserve policies.
Some analysts even suggested that the Israel-Palestine conflict might not be potent enough to alter the financial market’s primary driving forces, and a Federal Reserve official hinted that the need for interest rate hikes might be waning.
U.S. Stocks
Fundamental Analysis:
In the U.S. stock market, sectors such as oil and gas, defense, and aerospace performed exceptionally well.
Key players like Lockheed Martin, Northrop Grumman, Raytheon Technologies, Marathon Oil, Western Digital, and ExxonMobil, among other defense contractors and oil-related companies, saw robust stock price increases.
In response to concerns about security in Israel, NVIDIA Corporation decided to cancel its in-person annual AI summit scheduled for October 15-16 in Tel Aviv.
In the Chinese concept stock market, many popular stocks witnessed declines. The Nasdaq Golden Dragon Index fell by 0.94%.
Notably, Xpeng Motors saw a significant drop of over 10%, while NIO and Bilibili experienced declines of over 4%.
Alibaba, Full Truck Alliance, and JD.com also decreased by more than 1%.
On the brighter side, Netease saw an increase of over 3%, while Weibo, Futu Holdings, and Vipshop Holdings all rose by more than 2%, with Pinduoduo gaining over 1%.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones Industrial Average rose by 197.07 points, equivalent to a 0.59% increase, closing at 33,604.65 points.
- Nasdaq Composite Index (Nasdaq) increased by 52.90 points, reflecting a 0.39% rise, with a closing value of 13,484.24 points.
- S&P 500 Index gained 27.16 points, signifying a 0.63% increase, and closed at 4,335.66 points.
Hong Kong Stocks
In the Hong Kong stock market, all three major indices showed gains.
Notably, core technology stocks witnessed collective growth, with Meituan and Netease achieving over 3% gains.
Kuaishou, Alibaba, and JD.com Group also posted increases of over 2%, while Baidu Group approached a 2% gain.
Meanwhile, a majority of property stocks saw positive movement, with China Evergrande achieving an impressive 5% increase, although Country Garden faced a decline of over 3%.
The new energy vehicle sector, however, generally observed declines, particularly Xpeng Motors, which saw a drop of over 3%.
In the entertainment sector, Alibaba Pictures led with an impressive 7% gain, while infrastructure stocks moved in the opposite direction, with China Communications Construction declining by over 4%.
“Despite market trends, infrastructure stocks saw a decline, with China Communications Construction dropping by over 4%.
On the news front, CITIC Futures reported a continued decrease in the growth rate of infrastructure investments throughout August.
Data from the National Bureau of Statistics revealed that from January to August, infrastructure investments (excluding electricity) increased by 6.4% year-on-year, a drop from the previous 6.8%.
As of October 1, 2023, China had issued new special bonds totaling 34,598 billion yuan, achieving 91.05% of the annual quota of 38,000 billion yuan.
The report pointed out that there have been some improvements both in infrastructure project execution and funding.
With the arrival of ‘Golden September and Silver October,’ project construction might experience some acceleration.
However, it is important to consider the influence of the high base from the previous year, as the growth rate of infrastructure investments is expected to continue its downward trend.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) rose by 1.29%, closing at 17,743.93 points.
- Hang Seng Tech Index (HSTECH) experienced a gain of 1.63%, closing at 3,887.76 points.
- Hang Seng China Enterprises Index (HSCEI) achieved a 1.35% increase, closing at 6,079.21 points.
FTSE China A50 Index
Fundamental Analysis:
In the A-share stock market, the three major indices began with a collective rise but soon experienced oscillations and turned negative. This shift was primarily due to the significant weakness in mid-cap sectors.
Industry-wise, the energy, metals, mining, education, internet services, and optoelectronics sectors were among the top performers.
Conversely, the construction, medical services, pharmaceutical retail, traditional Chinese medicine, pharmaceuticals, cement, and building materials sectors saw the most significant declines.
In terms of concepts, activity was notable in areas like HarmonyOS, Huawei Euler, Huawei Ascend, electronic rearview mirrors, and digital watermarks.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index (SHCOMP) dipped by 0.5%, closing at 3,081.52 points.
- Shenzhen Component Index (SZCOMP) experienced a decline of 0.36%, closing at 10,070.88 points.
- ChiNext Index (CHINEXT) dropped by 0.27%, closing at 1,993.17 points.
- SSE STAR Market 50 Index (SSE50) fell by 0.39%, closing at 883.72 points.
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