The U.S. stock market closed higher on Thursday, with both the Dow Jones Industrial Average (DJI) and the S&P 500 reaching new historical highs.  

Investors continue to closely monitor earnings reports, especially from companies like Tesla.  

The U.S. fourth-quarter GDP data indicates robust economic growth and decreasing inflation, adding to market expectations of a Federal Reserve interest rate cut starting in March. 

Investors are paying close attention to GDP data to gauge the timing of the Fed’s interest rate cuts this year. Better-than-expected GDP data might delay the timing of accommodative monetary policy. 

Bart Melek, Head of Commodity Strategy at TD Securities, noted that the GDP data suggests, “The economy is running much hotter than expected, but at the same time, we are facing a situation where inflation is decreasing.” 

U.S. Stock Market

Fundamental Analysis: 

The U.S. stock market closed higher on Thursday, with both the Dow Jones Industrial Average (DJI) and the S&P 500 reaching new historical highs.  

Investors continue to closely monitor earnings reports, especially from companies like Tesla.  

The U.S. fourth-quarter GDP data indicates robust economic growth and decreasing inflation, adding to market expectations of a Federal Reserve interest rate cut starting in March. 

Investors are paying close attention to GDP data to gauge the timing of the Fed’s interest rate cuts this year. Better-than-expected GDP data might delay the timing of accommodative monetary policy. 

Bart Melek, Head of Commodity Strategy at TD Securities, noted that the GDP data suggests, “The economy is running much hotter than expected, but at the same time, we are facing a situation where inflation is decreasing.” 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones rose by 242.74 points, up 0.64%, closing at 38,049.13 points. 
• Nasdaq rose by 28.58 points, up 0.18%, closing at 15,510.50 points. 
• S&P 500 Index increased by 25.61 points, up 0.53%, closing at 4,894.16 points. 

Hong Kong Stock Market

Fundamental Analysis: 

In Hong Kong, all three major indices collectively declined.  

In the tech sector, Lenovo dropped over 8%, while Xiaomi and Meituan fell over 3%, Alibaba nearly 3%, and Baidu nearly 2%.  

Automotive stocks generally performed poorly, with XPeng Motors dropping nearly 4%.  

The mobile industry chain sector collectively declined, with Qutoutiao falling over 6%.  

Some pharmaceutical outsourcing concept stocks showed strength, with WuXi AppTec rising nearly 6%. 

Alibaba fell nearly 3%, and reports indicated that the group, through its wholly-owned subsidiary Skybridge LLC, used 512.3 million Alibaba shares (equivalent to about 64 million ADRs) to sign prepaid forward contracts with financial institutions back in April 2020.  

As of now, SoftBank has chosen to settle all prepaid forward contracts in physical form, relinquishing the right to retain Alibaba shares. Through this financial derivative tool, SoftBank has reduced its holdings in the majority of Alibaba’s stocks. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped by 0.94%, closing at 16,059.99 points. 
• Hang Seng Tech Index (HSTECH) fell by 2.66%, closing at 3,222.60 points. 
• Hang Seng China Enterprises Index (HSCEI.) declined by 1.51%, closing at 5,386.25 points. 

FTSE China A50 Index

Fundamental Analysis: 

In the A-share market, the three major indices opened lower, with the Shanghai Composite Index initially rising before falling back below 2900 points.  

The Shenzhen Component Index also experienced consolidation, while the ChiNext Index gradually weakened, with a decline of over 1%. 

In terms of industry sectors, real estate services, real estate development, gaming, engineering consulting services, and cement building materials led the gains.  

Semiconductor, photovoltaic equipment, electronic chemicals, consumer electronics, and professional services lagged behind in terms of performance. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.38%, closing at 2,895.14 points. 
• Shenzhen Component Index (SZCOMP) dropped by 0.77%, closing at 8,788.12 points. 
• ChiNext Index (CHINEXT) declined by 1.57%, closing at 1,693.78 points. 
• SSE STAR Market 50 Index (SSE50) dropped by 1.76%, closing at 752.34 points. 

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