The U.S. stock market managed a slight uptick last Friday, breaking a four-day losing streak for the Nasdaq. However, all three major indices ended the week with losses as concerns grew over the Federal Reserve’s potential aggressive tightening of monetary policy. 

Last week, certain economic data further fueled investor worries about future interest rate hikes by the Federal Reserve.  

Notably, the weekly initial jobless claims in the United States unexpectedly dropped to 216,000, reaching a new low since mid-February and surpassing the economist consensus of 230,000, as reported by a Dow Jones survey. 

Analysts noted that many institutional investors are concerned about the speed at which the U.S. economy is improving, possibly pushing the Federal Reserve to continue raising interest rates.  

At present, investors estimate a roughly 50% probability of a rate hike in November, according to the CME Group’s FedWatch Tool. 

While several Federal Reserve officials stated that a September rate hike is unlikely, Dallas Fed President Logan suggested the possibility of further rate hikes after last Thursday’s market close.  

Chicago Fed President Gulsby mentioned that the Federal Reserve’s efforts to control inflation through rate hikes are nearly complete. 

U.S. Stocks 

Fundamental Analysis: 

All three major U.S. stock indices recorded losses for the week, with the Dow Jones declining by 0.75%, the S&P 500 by 1.29%, and the Nasdaq by 1.93%. 

Among large tech stocks, Microsoft showed a gain of over 1%, while Google, Amazon, and Apple experienced modest increases.  

In contrast, Tesla and NVIDIA both dropped by over 1%, and Netflix and Meta saw slight declines.  

“Vietnamese Tesla” VinFast plunged nearly 5%, marking its eighth consecutive daily drop and an 80% decline from its recent peak, resulting in a market capitalization below $40 billion. 

Most popular Chinese concept stocks faced declines, with the Nasdaq Golden Dragon China Index falling by 0.52% and accumulating a 7% loss for the week.  

Bilibili dipped over 5%, iQiyi fell over 2%, and Baidu, KE Holdings, and Pinduoduo dropped over 1%. Alibaba, JD.com, and NetEase experienced modest gains, while Luckin Coffee fell over 6%. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average rose by 75.86 points, a 0.22% increase, closing at 34,576.59 points. 
• Nasdaq Composite Index rose by 12.69 points, a 0.09% increase, closing at 13,761.53 points. 
• S&P 500 Index rose by 6.35 points, a 0.14% increase, closing at 4,457.49 points. 

Hong Kong Stocks 

All three major Hong Kong stock indices declined today.  

The Hong Kong stock market opened lower by 260 points, breaking through the 18,000 mark. It later narrowed its losses to 204 points but remained below 18,000.  

Subsequently, it further fell to 17,842 points, with a maximum decline of 359 points. 

Last Friday, the Hang Seng Index was closed all day due to heavy rain, resulting in only four trading days during the week.  

It surged 462 points on Monday following positive external news but experienced a three-day decline afterward, resulting in a total weekly decline of 180 points. 

In terms of sectors, internet and tech stocks saw a widespread decline, with Bilibili Inc. (9626.HK) dropping over 6%, JD.com, Inc. (9618.HK) down nearly 4%, Alibaba Group Holding Limited (9988.HK) down over 3%, and Baidu, Inc. (9888.HK), Meituan (3690.HK), and Kuaishou Technology (1024.HK) following suit.  

Automotive stocks also declined, with XPeng Inc. (9868.HK) leading the way with a nearly 4% drop.  

Property stocks retreated collectively, with China Evergrande Group (3333.HK) down over 7%. 

Apple-related stocks led the decline, with Sunny Optical Technology (Group) Company Limited (2382.HK) falling nearly 5%.  

On the contrary, Chinese brokerage stocks moved against the trend, with CITIC Securities Company Limited (6030.HK) up over 3%.  

In the biotechnology sector, RemeGen Co., Ltd. (9995.HK) surged nearly 15%, while traditional Chinese medicine and pharmaceutical outsourcing concept stocks exhibited active gains. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell by 1.68%, closing at 1,717,896.16 points. 
• Hang Seng Tech Index (HSTECH) dropped by 1.97. 
• Hang Seng China Enterprises Index (HSCEI) declined by 1.42%. 

FTSE China A50 Index 

Fundamental Analysis: 

On Monday, the Shanghai Composite Index and the Shenzhen Component Index opened slightly higher, while the ChiNext Index opened slightly lower. 

After opening, the market experienced a volatile rebound, with all three indices in the green.  

The Shanghai Composite Index led with the highest gains.  

The total trading volume of the Shanghai and Shenzhen stock markets was 4898.25 billion yuan, with a net outflow of 565 million yuan of northbound funds.  

Among the stocks, 33 hit their daily limit up, including ST stocks, while 4 hit their daily limit down. 

In terms of industry sectors, biopharmaceuticals, chemical pharmaceuticals, medical devices, pharmaceutical retail, and traditional Chinese medicine performed well, while aerospace and aviation, interior decoration and design, real estate services, construction and decoration materials, and education sectors lagged behind.  

In terms of themes, weight loss drugs, innovative drugs, wheel hub motors, BC batteries, CRO, Huawei concepts, and photolithography concepts were more active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) rose by 0.57%, closing at 3,134.45 points. 
• Shenzhen Component Index (SZCOMP) rose by 0.44%, closing at 10,326.65 points. 
• ChiNext Index (CHINEXT) rose by 0.22%, closing at 2,054.29 points. 
• SSE STAR Market 50 Index (SSE50) rose by 0.27%, closing at 903.94 points. 
  
  

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