The three major U.S. stock indexes closed lower on Wednesday, 1st May 2022, as investors bet the latest economic data will do nothing to push the Federal Reserve to adjust its aggressive rate hike plan aimed at curbing inflation.
U.S. job openings fell in April but remain at fairly high levels, meaning wages will continue to rise as companies scramble for employees and cause inflation to remain uncomfortably high for some time.
In addition, U.S. manufacturing activity picked up faster than expected in May as demand for goods remained strong, easing fears that the economy is about to fall into recession.
At the same time, investors also focused on statements from several Federal Reserve officials on Wednesday. The Fed’s Beige Book showed that the economy grew at a moderate or moderate pace in most U.S. Fed regions from April through the end of May, and there were some initial signs that the Fed’s actions to reduce demand are starting to show results.
The Dow Jones Industrial Average fell 176.89 points, or 0.54%, to 32,813.23, the S&P 500 fell 30.92 points, or 0.75%, to 4,101.23, and the Nasdaq fell 86.93 points, or 0.72%, to 11,994.46.
Among the 11 major sectors in the S&P 500, energy stocks were the only class to gain, closing up 1.8% as oil prices moved higher.
The biggest decliners were the financial sector, down by 1.7%, and the biggest drag on the S&P 500 was the healthcare sector, which closed down by 1.4%.
Meanwhile, the consumer discretionary sector fell by 1.3%, while the materials <.SPLRCM> and real estate sectors also closed down by more than 1%.
With uncertainty over the Federal Reserve policy, the war in Ukraine and long-term supply chain problems caused by the coronavirus lockdowns in Asia’s major countries have hit stocks hard, with the S&P 500 index down by nearly 14% so far this year.
(Dow 30, 1-hour chart)
The Dow focuses on the 33233-line today. If the Dow runs stably above the 33233-line, it will pay attention to the suppression strength of the 33584 and 34088 positions. If the Dow falls below the 33233-line, it will pay attention to the support strength of the 32781 and 32455 positions.
Hong Kong Stocks
HSI opened lower, Hang Seng Index (HSI) and Hang Seng TECH Index (HSTECH) both fell over 1% at the opening.
On the board, large technology stocks fell in general, Alibaba Group Holding Limited (9988.HK) and NetEase, Inc. (9999.HK) fell over 3%, Meituan (3690.HK) fell over 2%, Xiaomi Corporation (1810.HK) and JD.com, Inc. (9618.HK) fell nearly 2%, Tencent Holdings Limited (0700.HK) fell 1.5%, GDS Holdings Limited (9698.HK) fell nearly 5%, and Bilibili Inc. (9626.HK) fell 2.8%.
Photovoltaic solar stocks plunged, Hong Kong local stocks, banking stocks, biotech stocks were partly lower, and recently strong sporting goods stocks retreated.
On the other hand, movie concept stocks, home appliance stocks, and pork concept stocks rose significantly, with WH Group Limited (0288.HK) opening 2% higher.
Central China Real Estate Limited (0832.HK) and Central China New Life Limited (9983.HK) bucked the market and surged nearly 14%. Henan Iron Construction Investment intends to acquire 29% stake in Central China Real Estate Ltd.
(HK50, 1-hour chart)
HK50 focuses on the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of 21450 and 22127. If HK50 runs below the 20467-line, then pay attention to the support strength of 19517 and 18606.
FTSE China A50 Index
(FTSE China A50, 1-hour chart)
FTSE China A50 pays attention to the 13157-line today. If the A50 runs steadily below the 13157-line, pay attention to the support strength of the two positions of 12945 and 12733. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13544 and 13970.
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