The U.S. stock market closed higher on Monday, with both the Dow Jones Industrial Average (DJI) and the S&P 500 reaching new intraday and closing highs, extending last week’s upward momentum.  

The Dow closed above 38,000 points for the first time, and investors are closely monitoring the Federal Reserve’s monetary policy outlook, along with this week’s crucial GDP and PCE personal consumption expenditure data. 

The recent series of record highs for the Dow and S&P 500 indicates that the U.S. stock market has officially entered a bull market that began in October 2022, rather than just a rebound within a bear market. The S&P 500 has risen by over 34% from its recent low point. 

Scott Chronert, leading a team of strategists at Citigroup, noted that despite the S&P 500 reaching historic highs, pushing the forward P/E ratio above 20, this deviation is triggered by the so-called Tech Seven giants, emphasizing that “valuations are a common obstacle to our positive outlook for the S&P 500; in our view, index P/E ratios may be misleading. 

U.S. Stock Market

Fundamental Analysis: 

Large tech stocks had mixed performances, with Apple surging over 1%, reclaiming a market value exceeding $3 trillion.  

NVIDIA saw a slight increase, reaching a historic high, while Tesla fell over 1%. AMD declined by over 3%, following a downgrade by a U.S. investment bank.  

Meta and Microsoft closed slightly lower, both reaching historic highs during the session.  

In the retail sector, the solar panel segment led gains, with Ast Solar Energy rising over 7%, Sunrun and Kohl’s both up over 4%, and Macy’s gaining over 3%.  

Agricultural commodities and cruise-related stocks faced declines, with Bunge falling over 4%, Carnival Cruise dropping nearly 4%, and Tyson Foods declining over 1%. 

Chinese concept stocks experienced widespread declines, with the Nasdaq Golden Dragon Index falling by 2.20%.  

Manbang Group fell over 5%, Futu Holdings and XPeng Motors dropped over 3%, and Baidu, XPeng Motors, JD.com, and Bilibili all fell over 2%. 

Pinduoduo, NIO, Alibaba, and Tencent Music all fell over 1%, while NetEase, iQiyi, and Vipshop saw marginal declines. Weibo surged over 3%. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones gained 138.01 points, up 0.36%, closing at 38,001.81 points. 
• Nasdaq rose 49.32 points, up 0.32%, closing at 15,360.29 points. 
• S&P 500 Index increased by 10.62 points, up 0.22%, closing at 4,850.43 points. 

Hong Kong Stock Market

Fundamental Analysis: 

In Hong Kong, all three major indices surged collectively.  

In the tech sector, JD.com rose nearly 5%, while NetEase and Tencent both gained over 4%, and Alibaba and Kuaishou each rose over 3%. Baidu and Meituan increased over 2%.  

Real estate stocks led the gains, with Longfor Group and China Resources Land both rising over 7%.  

Automotive stocks surged collectively, with XPeng Motors up 7.77%.  

Banking stocks also rose, led by a more than 4% increase in China Merchants Bank.  

Strong performances were observed in the consumer electronics, mobile gaming, and internet medical sectors. 

In Hong Kong, real estate stocks took the lead in gains, with Longfor Group and China Resources Land both surging over 7%.  

In recent regulatory developments, authorities have made it clear that the scope of cities included in urban village renovation and affordable housing construction projects will expand.  

This expansion will encompass cities with a permanent population exceeding 3 million in urban areas, extending to provincial capitals or cities with a permanent population exceeding 2 million.  

Additionally, this expansion includes cities with a permanent population exceeding 1 million in urban areas. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) surged 2.46%, closing at 15,329.03 points. 
• Hang Seng Tech Index (HSTECH) rose 3.56%, closing at 3,143.47 points. 
• Hang Seng China Enterprises Index (HSCEI.) increased by 2.70%, closing at 5,137.06 points. 

FTSE China A50 Index

Fundamental Analysis: 

In the A-share market, the three major indices opened lower but rebounded after initial dips.  

The indices collectively turned positive, with the ChiNext Index and Shenzhen Component Index rising over 1% during the session.  

However, the market later retreated from its highs, and the Shanghai Composite Index turned negative again.  

The photovoltaic equipment sector led the gains, with strong performances in the securities, gaming, energy metals, diversified financial, and coal industries.  

Conversely, household light industry, textile and apparel, tourism and hotels, decoration and building materials, and railway and highway sectors faced notable declines. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.35%, closing at 2,746.74 points. 
• Shenzhen Component Index (SZCOMP) rose by 0.62%, closing at 8,532.3 points. 
• ChiNext Index (CHINEXT) increased by 0.96%, closing at 1,682.93 points. 
• SSE STAR Market 50 Index (SSE50) rose by 0.02%, closing at 742.36 points. 

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