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) 

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) 

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) 

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. 

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