On Tuesday, the U.S. stocks closed with mixed results, as the Nasdaq saw its largest single-day decline since October 2023.  

Pressures on tech stocks arose from the rebound in U.S. bond yields and Barclays’ downgrade of Apple stock. 

The market remains attentive to the Federal Reserve’s interest rate path in 2024. 

Back in October 2023, the 10-year U.S. Treasury bond yield had momentarily surpassed 5%, causing investor panic.  

However, this yield peaked and steadily declined, falling below 3.9% by the end of 2023.  

On Tuesday, the 10-year U.S. Treasury bond yield rebounded, nearing 4% once again. 

Adam Crisafulli, founder of Vital Knowledge, remarked in a report: “The greatest real risk facing the stock market is not the Federal Reserve or the European Central Bank failing to cut rates as aggressively as expected but rather earnings declining more than anticipated in an environment of slowing economic growth and fading pricing power.” 

U.S. Stocks

Fundamental Analysis: 

Large tech stocks declined. Apple and Netflix dropped over 3%, Meta over 2%, Microsoft, Amazon, Google over 1%, while Tesla saw a slight dip.  

Chip stocks experienced significant declines: ARM dropped over 8%, marking its largest single-day drop since IPO; AMD, ASML dropped over 5%, Intel over 4%, Qualcomm over 3%, NVIDIA over 2%.  

Moderna surged over 13%, hitting a new high since September last year; JPMorgan Chase rose over 1%, reaching a historic high. 

Most popular Chinese stocks declined. The Nasdaq Golden Dragon China Index fell by 3.50%.  

Ideanomics, NIO dropped over 7%, JD, Full Truck Alliance, Futu Holdings dropped over 5%, Bilibili dropped over 4%, XPeng, Weibo, Alibaba, Tencent Music, Baidu dropped over 3%, Vipshop dropped over 2%, iQIYI dropped over 1%, while NetEase, Pinduoduo saw marginal declines. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones rose by 25.50 points, a 0.07% increase, closing at 37,715.04 points. 
• Nasdaq fell by 245.41 points, a 1.63% decline, closing at 14,765.94 points. 
• S&P 500 Index dropped by 27.00 points, a 0.57% decrease, closing at 4,742.83 points. 

Hong Kong Stocks

Fundamental Analysis: 

All three major indices in Hong Kong experienced declines.  

In the tech sector, JD dropped over 4%, Xiaomi over 3%, Baidu nearly 3%, Alibaba, Meituan over 2%, while gaming stocks NetEase, Tencent rose by over 1%.  

Automotive stocks plummeted, with Leapmotor dropping by almost 7% and NIO by 5%.  

Apple-related stocks faced significant declines, with High Wealth Electronics dropping over 6%. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell by 1.22%, closing at 16,583.55 points. 
• Hang Seng Tech Index (HSTECH) dropped by 2.37%, closing at 3,626.66 points. 
• Hang Seng China Enterprises Index (HSCEI.) declined by 1.16%, closing at 5,606.97 points. 

FTSE China A50 Index

Fundamental Analysis: 

A shares opened lower, with the Shanghai Composite rebounding initially but later trading sideways.  

The Shenzhen Component and the ChiNext Index continued to decline, with ChiNext falling over 1%. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) dropped by 0.17%, closing at 2,957.34 points. 
• Shenzhen Component Index (SZCOMP) fell by 1%, closing at 9,307.37 points. 
• ChiNext Index (CHINEXT) declined by 1.34%, closing at 1,831.04 points. 
• SSE STAR Market 50 Index (SSE50) dropped by 1.28%, closing at 829.01 points. 

---

Forward-looking Statements    
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.     

Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.     

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.    

Disclaimer    
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.