On Thursday, U.S. stocks closed higher, with both the Dow and the S&P 500 hitting new all-time highs. The S&P 500 index breached the 5000 mark for the first time.

The market continues to focus on U.S. corporate earnings and the Federal Reserve’s policy outlook. Initial jobless claims in the United States last week fell more than expected.

Recent momentum in U.S. stocks has been driven by increased investor confidence. Most of the fourth-quarter earnings released so far have been stronger than expected, leading investors to believe that a healthy economy will continue to drive corporate profit growth.

Adam Crisafulli, founder of Vital Knowledge, said in a report, “The ‘three major factors’ that have been driving the stock market higher since November are still providing upward momentum to the market. They are declining inflation, the dovish monetary turn of the Federal Reserve, and the resilience of corporate profits.”

U.S. Stock Market

Fundamental Analysis: 

Popular Chinese concept stocks generally fell, with the Nasdaq Golden Dragon China Index down 1.06%. JD.com dropped more than 4%, Alibaba over 3%, and Vipshop, iQIYI, and Baidu over 2%. Tencent Music, Pinduoduo, Manbang, and NetEase fell more than 1%, while Futu Holdings, NIO, XPeng Motors, and Bilibili saw slight declines. Ideal Auto edged up slightly.

Large-cap tech stocks showed mixed performance, with Tesla up over 1%, while Microsoft, Meta, and Google edged up slightly. Apple, NVIDIA, Netflix, and Amazon saw slight declines.

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average: Up 48.97 points, or 0.13%, to close at 38,726.33 points.
• Nasdaq Composite: Up 37.07 points, or 0.24%, to close at 15,793.71 points.
• S&P 500 Index: Up 2.85 points, or 0.06%, to close at 4,997.91 points.

Hong Kong Stock Market

Fundamental Analysis: 

During the half-day trading session in Hong Kong on Thursday, major indices opened lower across the board. Internet concept stocks generally fell, with Alibaba down over 2%, JD.com, Meituan, and Xiaomi down over 1%. Real estate stocks led the declines, with China Evergrande Group down over 7%. Automotive stocks all fell, with Leapmotor down over 10%. Shipping stocks saw significant declines, with Orient Overseas International down nearly 9%. Chinese brokerage stocks fell across the board, with CITIC Securities down nearly 6%. Against the trend, education stocks rose, with New Oriental up nearly 6%.

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index: Down 0.83% to close at 15,746.58 points.
• Hang Seng TECH Index: Down 1.30% to close at 3,126.92 points.
• Hang Seng China Enterprises Index: Down 0.99% to close at 5,306.79 points.

FTSE China A50 Index

Fundamental Analysis: 

On February 8, 2024, trading in A shares officially closed for the Year of the Rabbit in the Chinese lunar calendar. A shares will be closed from February 9 to February 18, with the first trading day of the Year of the Dragon falling on February 19.

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