Last Friday, fund managers carefully adjusted their portfolios in accordance with the upcoming “special rebalancing” of the NASDAQ 100 index. As a result, the three major indices showed mixed movements, with the Dow Jones and S&P 500 registering modest gains, while the NASDAQ declined. The Dow Jones recorded its tenth consecutive trading day of gains, marking the longest streak since August 2017 with a marginal increase of 0.01%. 

U.S. Stocks 

Fundamental Analysis: 

On Friday, only 4 out of 11 sectors in the S&P 500 index experienced declines, with the communication services, industrial, and financial sectors leading the losses, while utilities and healthcare sectors continued to lead in gains. 

Tech stocks experienced widespread declines, with Apple falling by 0.62%, Microsoft by 0.89%, Amazon slightly rising by 0.03%, META dropping by 2.73%, Google rising by 0.69%, Tesla falling by 1.1%, NVIDIA dropping by 2.66%, and Intel rising by 1.95%. 

Last week, the market sentiment was significantly impacted by the earnings reports of Netflix and Tesla, leading to indecisiveness as investors awaited more information.  

This week, in addition to the “special rebalancing” of the NASDAQ 100, the market is preparing for earnings reports from tech giants Microsoft and Google, as well as the latest interest rate decision from the Federal Reserve. 

Technical Analysis:    

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones gained 2.51 points, a marginal increase of 0.01%, closing at 35,227.69 points. 
• NASDAQ declined by 30.50 points, a decrease of 0.22%, closing at 14,032.81 points. 
• S&P 500 rose by 1.47 points, a modest increase of 0.03%, closing at 4,536.35 points. 
  
  

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks continued their downward trend in the afternoon, with all three major indices falling by about 2.2%. The stock market closed in the morning at a near-low level of 18,808, down 266 points.  

The afternoon session saw a sustained decline, with the fall gradually widening to a low of 18,562, a maximum drop of 513 points, nearing a decline of 2.6%.  

The Hang Seng Tech Index experienced a sharp drop, breaking below the 4,000-point mark to a low of 3,989, a maximum drop of 115 points, resulting in a decline of 2.6%. 

Among the sectors, heavyweight technology stocks experienced widespread declines, with Baidu, Inc. (9888.HK) and JD.com, Inc. (9618.HK) falling by over 3%. Companies like Kuaishou Technology (1024.HK), Meituan (3690.HK), Alibaba Group Holding Limited (9988.HK), and NetEase, Inc. (9999.HK) also declined. 

Property stocks, which had opened high due to favorable policies, collectively fell, dragging property management and building materials stocks down. 

Country Garden Services Holdings Company Limited (6098.HK) and Country Garden (2007.HK) both experienced significant declines of nearly 18% and 9%, respectively.  

Automobile stocks, mid-cap stocks, and catering stocks all declined together. On the other hand, power stocks saw a contrary rise, with China Power International Development Limited (2380.HK) rising by 2.3%. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index declined by 2.13%, closing at 18,668.15 points. 
• Hang Seng Tech Index declined by 2.18%. 
• Hang Seng China Enterprises Index declined by 2.24%. 
  
  

FTSE China A50 Index 

Fundamental Analysis: 

On Monday, the three major indices of A-share collectively opened lower, with the market rebounding and then falling back during the morning session. They briefly turned positive, but only the Shanghai Composite managed to close the morning session with a slight gain.  

In the afternoon, A-shares further declined, and during the closing, the three major indices collectively fell. The total trading volume of the Shanghai and Shenzhen stock markets was 658.923 billion yuan, with northbound funds selling a net 5.143 billion yuan. There were 27 stocks with a daily limit-up (including ST stocks) and 14 stocks with a daily limit-down. 

In terms of industry performance, shipbuilding, engineering consulting services, biotechnology products, traditional Chinese medicine, medical equipment, and pharmaceuticals led the gains, while energy metals, fertilizer industries, batteries, agriculture, animal husbandry, and fisheries, and jewelry sectors faced significant declines.  

In thematic performances, state-owned cloud, digital watermarking, AIGC concept, computing power concept, and innovative pharmaceuticals showed active performance. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite declined by 0.11%, closing at 3,164.16 points. 
• Shenzhen Component declined by 0.58%, closing at 10,747.79 points. 
• ChiNext Index declined by 0.75%, closing at 2,146.93 points. 
• STAR 50 Index declined by 0.52%, closing at 950.55 points. 
  
  

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