U.S. stocks ended higher on Monday, with Tesla’s stock jumping 15.3%, boosting its market value by over $80 billion.
This week, the market’s focus is on key earnings reports from Apple and Amazon, April’s non-farm payroll data, and the Federal Reserve’s monetary policy meeting.
Tesla’s share price soared 15.3%, adding more than $82 billion in market value after the company cleared significant hurdles for launching its Full Self-Driving (FSD) technology in China.
Tesla’s local operations confirmed that restrictions on Tesla vehicles are being progressively lifted across China, paving the way for FSD’s deployment domestically.
Morgan Stanley strategist Michael Wilson commented on Monday that rising U.S. bond yields are dimming the luster of an otherwise optimistic U.S. earnings season.
U.S. Stocks
Fundamental Analysis:
Performance among large tech stocks was mixed. Tesla’s shares soared over 15% after the announcement that it would implement its Full Self-Driving (FSD) service in China, leveraging Baidu’s advanced lane-level navigation and maps.
Apple’s shares rose over 2% and Amazon saw a slight increase. In contrast, Google and Meta experienced declines of over 3% and 2%, respectively, with both Microsoft and Netflix also seeing decreases.
In the semiconductor sector, Advanced Micro Devices jumped nearly 9%, and Qualcomm rose over 2%, while Nvidia, Applied Materials, and Arm also posted gains.
Conversely, Intel’s shares dropped over 9%, and STMicroelectronics fell nearly 3%.
Chinese concept stocks generally experienced an uptick, with the Nasdaq Golden Dragon China Index rising by 0.54%.
Li Auto surged over 7%, Baidu over 5%, and XPeng over 3%. Nio increased by over 2%, and other stocks like Bilibili, Alibaba, iQiyi, and Vipshop also saw gains exceeding 1%.
Meanwhile, Weibo, NetEase, Manbang, and Tencent Music enjoyed modest increases. On the downside, Pinduoduo, Futu Holdings, and JD.com each declined by more than 1%.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Nasdaq rose 55.18 points or 0.35%, to 15,983.08.
- Dow increased by 146.43 points or 0.38%, to 38,386.09.
- S&P 500 gained 16.21 points or 0.32%, to 5,116.17.
Hong Kong Stock Market
Fundamental Analysis:
The three major Hong Kong indices saw an initial surge before pulling back.
In the tech sector, performance was mixed: Baidu climbed nearly 2% following a collaboration announcement with Tesla, while Alibaba and NetEase also posted gains.
Conversely, JD.com and Xiaomi each dropped over 1%. The appliance sector led the market with Haier Smart Home soaring over 8%.
In real estate, China Vanke’s shares declined over 7%.
The oil sector was notably active, with CNOOC advancing nearly 4%. However, the performance of Chinese brokerage stocks was lackluster, with CITIC Securities, China International Capital Corporation, and Huatai Securities each falling over 4%.
L’Occitane announced plans to go private, offering a 15% premium, which pushed its share price up nearly 10%.
According to the announcement, billionaire shareholder Geige proposed acquiring the remaining L’Occitane shares for HK$34 each, potentially ending the company’s 14-year tenure on the Hong Kong Stock Exchange. Valued at approximately $6.4 billion, the buyout has garnered support from several shareholders.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) was up 0.19%, to 17,781.41.
- Hang Seng Tech Index (HSTECH) was down 0.15%, to 3,707.63.
- Hang Seng China Enterprises Index (HSCEI.) was up 0.12%, to 6,290.32.
FTSE China A50 Index
Fundamental Analysis:
The main A-share indices experienced a morning of volatile adjustments, with the ChiNext Index falling over 1%.
The synthetic biology sector exploded in growth, with several stocks hitting the upper limit.
Appliance stocks saw a mid-session rally, and banking stocks were unusually active, with Changshu Bank rising nearly 7%.
Pork stocks spiked temporarily, while stocks associated with the low-altitude economy took a significant hit.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index (SHCOMP) was down 0.12%, to 3,109.26.
- Shenzhen Component Index (SZCOMP) was down 0.63%, to 9,612.93.
- ChiNext Index (CHINEXT) was down 1.25%, to 1,864.01.
- SSE Sci-Tech Innovation 50 Index was down 1.10%, to 767.61.
Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.
Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.
