On Wednesday, the U.S. stock market experienced a decline, with the Nasdaq declining for the fourth consecutive trading day and the S&P index showing a third consecutive day of losses. 

After surpassing 4%, the yield on the 10-year U.S. Treasury bond retreated.  

The December minutes from the Federal Reserve’s monetary policy meeting indicated a high likelihood of interest rate cuts in 2024 due to concerns over inflation, but the path for interest rates remains highly uncertain. 

The minutes revealed the Fed policymakers’ increased confidence in controlling high inflation and their belief that the risks of inflation escalation have diminished.  

They suggested potential rate cuts in the coming year, though the path for interest rates remains uncertain.  

Regarding the uncertainty in the interest rate path, the minutes stated, “Participants noted that policy rates may be at or near the peak of this tightening cycle, but they highlighted that the actual policy path will depend on how the economy evolves.” 

U.S. Stocks

Fundamental Analysis: 

Most large tech stocks declined, with Tesla dropping around 4%, marking its largest single-day decline since November 9th last year.  

NVIDIA and Intel dropped over 1%, while Apple, Microsoft, Meta, Amazon saw slight declines. Google and Netflix saw marginal increases.  

Chip stocks collectively declined, with Taiwan Semiconductor Manufacturing Co. falling over 5%, Silicon Laboratories dropping over 3%, Broadcom, AMD, and NXP Semiconductors dropping over 2%.  

Precious metals and clean energy sectors recorded significant declines, with Corelateral Mining falling over 9%, Sunworks Inc dropping over 8%, Hecla Mining, Plug Power, Pan American Silver, Kinross dropping over 4%, Harmony Gold dropping over 2%.  

Popular Chinese stocks mostly rose, with the Nasdaq Golden Dragon China Index rising by 1.53%.  

NetEase surged over 4%, Bilibili, Li Auto rose over 3%, Alibaba, Pinduoduo, Baidu rose over 2%, Tencent Music, XPeng, Futu Holdings rose over 1%, while NIO, JD, Vipshop, Weibo saw marginal increases. iQIYI experienced a slight decline. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones fell by 284.85 points, a 0.76% decline, closing at 37,430.19 points. 
• Nasdaq dropped by 173.73 points, a 1.18% decline, closing at 14,592.21 points. 
• S&P 500 Index declined by 38.02 points, a 0.80% decrease, closing at 4,704.81 points. 

Hong Kong Stocks

Fundamental Analysis: 

The three major indices in Hong Kong fluctuated after opening higher. Core tech stocks had mixed performance, with Kuaishou dropping over 2%. 

Meituan fell nearly 2%, while Baidu, NetEase, Alibaba trended upwards.  

Most automotive stocks declined, with XPeng falling by 2%. Sporting goods stocks led the market decline, with Anta Sports, Xtep International falling over 4%.  

Shipping stocks rose against the market trend, with COSCO SHIPPING rising nearly 6%.  

Oil stocks generally increased, with CNOOC rising over 2%.  

The Education Department will select about 1,000 high-quality online vocational education courses, leading to collective strength in education stocks, with New Oriental rising over 5%. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped by 0.49%, closing at 16,564.79 points. 
• Hang Seng Tech Index (HSTECH) fell by 0.45%, closing at 3,630.12 points. 
• Hang Seng China Enterprises Index (HSCEI.) declined by 0.19%, closing at 5,618.34 points. 

FTSE China A50 Index

Fundamental Analysis: 

A shares opened lower, with the market fluctuating downwards after the opening.  

The ChiNext Index and the Shenzhen Component widened their declines to 1%, with the Shanghai Composite also briefly falling by 1% in the morning.  

Meanwhile, the SCI 50 Index hit another historic low. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.87%, closing at 2,941.4 points. 
• Shenzhen Component Index (SZCOMP) dropped by 1.44%, closing at 9,196.89 points. 
• ChiNext Index (CHINEXT) declined by 1.78%, closing at 1,802.16 points. 
• SSE STAR Market 50 Index (SSE50) dropped by 1.09%, closing at 820.7 points. 

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