US stocks closed mixed on Monday, with the S&P 500 and Nasdaq hitting new record highs. The Dow Jones Industrial Average ended its four-day losing streak.
Goldman Sachs and Citigroup have both raised their forecasts for the S&P 500. Multiple Federal Reserve officials are scheduled to speak this week, and the market will be closely watching their comments on interest rate projections.
This Wednesday, June 19, marks Juneteenth National Independence Day in the US, a federal holiday commemorating the emancipation of enslaved African Americans. US markets will be closed for the holiday.
Shannon Saccocia from NB Private Wealth remarked, “Investors are focusing on two main themes this year: long-term artificial intelligence and the reshoring of manufacturing, coupled with ongoing strong economic growth.”
US Stocks
Fundamental Analysis:
Major tech stocks were mostly up. Tesla rose over 5%, while Microsoft, Apple, and Intel each gained over 1%. Netflix, Google, Amazon, and Meta saw modest gains, with Nvidia slightly down. Both Microsoft and Apple set new all-time closing highs.
The chip and semiconductor sectors performed well, with Broadcom and AMD up over 5% and Micron Technology gaining more than 4%. Qualcomm increased by more than 3%.
Precious metals and energy sectors saw declines, with Coeur Mining, First Solar, and Sunrun Inc. dropping over 4%, and Hecla Mining falling more than 2%.
GameStop plunged over 12% after the CEO announced a shift in focus toward profitability and away from speculative activities.
Chinese stocks had mixed performance. The Nasdaq Golden Dragon China Index fell by 0.05%.
Bilibili rose over 6%, NIO gained more than 2%, and XPeng, Alibaba, JD.com, and Vipshop each increased by over 1%, with Weibo slightly up.
Tencent Music dropped more than 4%, Futu Holdings fell over 2%, while Li Auto and iQIYI declined by over 1%. Full Truck Alliance, Baidu, Pinduoduo, and NetEase experienced slight decreases.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones: +188.94 points (+0.49%) at 38,778.10
- Nasdaq: +168.14 points (+0.95%) at 17,857.02
- S&P 500: +41.63 points (+0.77%) at 5,473.23
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s major indices rose before falling back. Leading the decline were tech stocks, with NetEase down over 3%, Baidu over 2%, and Meituan over 1%, followed by drops in Alibaba and Tencent.
Semiconductor stocks led gains, with SMIC rising nearly 4%, and Apple-related stocks continued their upward trend with Sunny Optical Technology up over 4%. Gold stocks generally fell, with Zijin Mining down over 2%.
Zijin Mining announced it had raised $2.5 billion from overseas investors through a Hong Kong market refinancing, including $2 billion in convertible bonds and $500 million in placements. The stock was priced at a 5% discount, with a coupon rate of 1% and a conversion premium of 28%.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index: -0.18% at 17,903.06
- Hang Seng Tech Index: -0.16% at 3,703.45
- Hang Seng China Enterprises Index: -0.10% at 6,366.94
FTSE China A50 Index
Fundamental Analysis:
Mainland China’s major indices opened lower but turned positive as the session progressed.
Low-altitude economy stocks rebounded, with Jianxin rising over 14%.
Optical module stocks continued to strengthen, with New Easun and Zhongji Innolight hitting new highs.
Semiconductor and component stocks remained strong, with Dongjing Electronics hitting its fifth consecutive limit-up.
Vehicle-road collaboration stocks were active, with Soling reaching its second consecutive limit-up.
Pork stocks surged at the open, with Zhenghong Technology hitting the limit-up.
In contrast, virtual power plant stocks opened lower, with Sanhui Electric down over 5% and Autel falling more than 4.5%.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index: +0.36% at 3,026.61
- Shenzhen Component Index: +0.48% at 9,326.02
- ChiNext Index: +0.62% at 1,817.42
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