The U.S. stock market showed mixed movements at Tuesday’s close, with the NASDAQ slightly climbing while the broader indices fluctuated.  

NVIDIA achieved yet another historic high in its stock price.  

This week, market attention remains focused on inflation data and earnings reports from major banks.  

A Federal Reserve official mentioned persistent inflation risks, emphasizing that it’s not yet time for interest rate cuts. 

NVIDIA marked consecutive record highs for the second trading day, unveiling three chips at the 2024 Consumer Electronics Show (CES) pre-event. These chips aim to enhance users’ utilization of artificial intelligence on personal computers without reliance on remote internet services. 

The Federal Reserve’s policy direction continues to captivate market interest. AJ Oden, Global Investment Strategist at J.P. Morgan Private Bank, expressed the market’s eagerness to ascertain the frequency of interest rate cuts this year. They anticipate a surge in tech stocks leading to an optimistic market environment by the end of 2024. 

U.S. Stock Market

Fundamental Analysis: 

Tech Giants: AMD surged over 2%, NVIDIA nearly 2%—achieving record highs for two consecutive days. Google, Amazon rose over 1%, while Tesla fell over 2%. Micron Technology, ASML Holdings dropped over 1%. 

Top Gainers: Uranium, Robotics, Retail stocks led gains, with NexGen Energy surging over 6%, Denison Mines over 5%, Shopify over 3%, and Kohl’s over 2%. 

Top Losers: Energy and Industrial Metal sectors faced declines, with Gerdau Steel falling over 6%, Combustion Battery Energy over 4%, and PrairieSky Energy, Nucor Steel dropping over 3%. Banking stocks collectively slid, including Wells Fargo, Bank of America, Morgan Stanley declining over 1%, and Citigroup nearly 1%. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones fell by 157.85 points, down 0.42%, closing at 37,525.16 points. 
• Nasdaq increased by 13.94 points, up 0.09%, closing at 14,857.71 points. 
• S&P 500 Index dropped by 7.04 points, down 0.15%, closing at 4,756.50 points. 

Hong Kong Stock Market

Fundamental Analysis: 

Today, the three major Hong Kong indices surged initially but retreated later.  

Core tech stocks diversified, with Kuaishou rising over 1%, JD.com and Meituan up 0.5%, while Xiaomi dropped nearly 2%, Tencent over 1%, and Alibaba 0.5%.  

Insurance stocks weighed on the market, with China Life and China Taiping falling over 2%.  

New energy vehicle companies like NIO faced declines, dropping over 4%.  

Biotech and pharmaceutical outsourcing concept stocks showed strong gains, with BeiGene surging over 6% and WuXi Biologics over 3%.  

Hotpot chain Haidilao surged over 6%, while ‘Walking with the Brilliance’ show led Dongfang Select’s rise of over 2%. 

The pharmaceutical outsourcing concept stocks, especially WuXi Biologics, demonstrated over 3% growth.  

China Everbright Securities noted the stable overall external demand for CRO due to the more mature development of the overseas innovative drug industry.  

The transmission path from macro factors to biotech stocks, investment and financing, and subsequent corporate performance has accelerated since the third quarter of 2023, buoyed by improved overseas financing for CRO. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped by 0.42%, closing at 16,122.67 points. 
• Hang Seng Tech Index (HSTECH) fell by 0.43%, closing at 3,439.69 points. 
• Hang Seng China Enterprises Index (HSCEI.) increased by 0.30%, closing at 5,433.35 points. 

FTSE China A50 Index

Fundamental Analysis: 

Chinese A-shares started on a low note, probing lower in early trading.  

The Shanghai Composite hit its lowest level since April 2022, with the Shenzhen Component and the ChiNext Index falling over 1%.  

However, the three indices later rebounded from their lows, with the ChiNext Index briefly surging over 1%, yet Chinese A-shares slipped again into a volatile state. 

In terms of sectoral performance, photovoltaic equipment, beauty care, battery, power equipment, and brewing industries led the gains.  

Conversely, cultural media, gaming, consumer electronics, computer equipment, and optical electronics faced notable declines. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.21%, closing at 2,887.18 points. 
• Shenzhen Component Index (SZCOMP) dropped by 0.19%, closing at 8,954.86 points. 
• ChiNext Index (CHINEXT) increased by 0.01%, closing at 1,750.92 points. 
• SSE STAR Market 50 Index (SSE50) rose by 0.01%, closing at 783.03 points. 

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