Search Mark
Home / Global Stock Markets

Dow Drops Over 200 Points; Nvidia Rallies Post-Earnings 


Dow Drops Over 200 Points; Nvidia Rallies Post-Earnings 

US markets closed lower on Wednesday, with the Dow dropping over 200 points. Investors focused on key earnings reports from companies like Nvidia.  

The Federal Reserve’s meeting minutes revealed heightened concerns about inflation, reducing market expectations for rate cuts. Goldman Sachs CEO predicted no rate cuts this year. 

The Federal Reserve released the minutes from its April 30 to May 1 monetary policy meeting, showing increased concerns among officials about inflation. Members expressed a lack of confidence in proceeding with rate cuts. 

Following the release of the Fed’s minutes, Goldman Sachs CEO David Solomon stated that he does not expect the Fed to cut rates this year due to the economy’s resilience, bolstered by government spending. 

US Stocks

Fundamental Analysis: 

Major tech stocks mostly fell. Tesla dropped over 3%, while Apple and Google dipped less than 1%.  

Precious metals, non-ferrous metals, mining, and oil and gas sectors led the declines.  

U.S. Gold Corporation fell nearly 9%, Southern Copper and Century Aluminum both dropped over 7%, Coeur Mining lost over 6%, and Alcoa and Pan American Silver were down over 4%. 

Most popular Chinese stocks fell, with the Nasdaq Golden Dragon China Index dropping 1.16%.  

Alibaba fell over 4%, Baidu and Weibo both dropped over 2%, JD.com and Tencent Music both declined over 1%.  

Li Auto, NetEase, Nio, XPeng, Futu Holdings, and Full Truck Alliance also saw slight declines.  

Pinduoduo rose over 1% on strong Q1 earnings, while Bilibili, Vipshop, and iQiyi saw small gains. 

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

(S&P 500 Index, 1-day chart) 

Market Trends: 

  • Dow Jones fell by 201.95 points, or 0.51%, closing at 39,671.04.  
  • Nasdaq dropped by 31.08 points, or 0.18%, to finish at 16,801.54. 
  • S&P 500 declined by 14.40 points, or 0.27%, ending the session at 5,307.01. 

Hong Kong Stock Market

 Fundamental Analysis: 

All three major indices in Hong Kong fell. Tech stocks led the decline, with NetEase down over 5%, Alibaba down over 3%, and JD.com and Xiaomi both down nearly 3%.  

Weakened expectations for Fed rate cuts led to a gold price retreat, causing a broad decline in gold stocks, with Lingbao Gold down over 4%.  

Real estate trust stocks also fell, with Link REIT down nearly 4% after UBS significantly cut its target price.  

Chinese brokerage stocks mostly declined, with GF Securities down over 4%. Property management, heavy infrastructure, and pharmaceutical outsourcing stocks also weakened. 

Gold stocks collectively fell, with Lingbao Gold down over 4%.  

Hawkish wording in the FOMC minutes dampened hopes for rate cuts, causing sharp drops in gold and silver prices.  

London gold fell to $2366.3, its third consecutive day of decline. London silver dropped over 1% to $30.23. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

(Hang Seng Index, 1-day chart) 

Market Trends: 

  • Hang Seng Index decreased by 1.38%, closing at 18,930.02.  
  • Hang Seng Tech Index dropped by 1.68%, ending at 3,925.50.  
  • Hang Seng China Enterprises Index fell by 1.45%, closing at 6,719.13.

FTSE China A50 Index

 Fundamental Analysis: 

Mainland China’s three major stock indices opened lower and continued to decline, with half-day trading volume on the Shanghai and Shenzhen stock exchanges at 491.4 billion yuan, a decrease of 22.3 billion yuan from the previous trading day.  

Leading gainers included real estate, new urbanization, education, and BC batteries, while leading decliners included tourism, oil and gas, civil explosives, and non-ferrous metals. 

The PEEK materials sector saw significant gains, with Huami New Materials up over 20% and Kent Shares hitting the 20% daily limit.  

The national defense and military industry sector strengthened, with Tianhai Defense and Xinyu Guoke both up over 10%, and Changcheng Defense hitting the daily limit.  

On the downside, non-ferrous metals continued to retreat, led by gold stocks, with Hainan Mining and Yulong Shares among the top decliners.  

The education sector also faced a downturn, and real estate stocks continued to pull back, with Hainan Expressway falling nearly 9%. 

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

(SSE Composite Index, 1-day chart) 

Market Trends: 

  • Shanghai Composite Index declined by 1%, closing at 3,126.82.   
  • Shenzhen Component Index fell by 1.19%, ending at 9,577.91.  
  • ChiNext Index dropped by 0.98%, closing at 1,859.45.  
  • STAR Market 50 Index decreased by 1.07%, ending at 746.86. 

Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.

Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.

Share to

Global Stock Markets

US Markets Closed, Goldman Forecasts Election-Driven Inflation

US markets were closed for Juneteenth, Goldman Sachs strategists believe that elections pose the greatest risk to US inflation and bond returns.

2024-6-20 | Global Stock Markets

S&P and Nasdaq Hit New Highs, Nvidia Tops Market Cap

S&P 500 and Nasdaq reaching new record highs. The AI boom propelled Nvidia to surpass Microsoft, making it the world's most valuable company.

2024-6-19 | Global Stock Markets

US Stocks Mixed, Microsoft and Apple Set Record Closes

US stocks closed mixed, with the S&P 500 and Nasdaq hitting new record highs. Microsoft and Apple gained over 1%, setting new all-time closing highs.

2024-6-18 | Global Stock Markets