U.S. stocks closed mixed on Friday, with both the Nasdaq and S&P 500 indices rose for the third consecutive week. The Dow marking its fourth consecutive week and eighth consecutive day of gains.  

The market continued to focus on earnings reports and the Federal Reserve’s policy outlook.  

Several Fed officials mentioned that inflation pressures remain high, suggesting that higher interest rates could persist for a longer period. 

Consumer sentiment indices showed a rise in one-year and five-year inflation expectations.  

The one-year inflation forecast jumped to 3.5%, up by 0.3 percentage points from a month ago, reaching its highest level since November 2023.  

The five-year inflation expectation rose to 3.1%, up by just 0.1 percentage points, reversing the downward trend of the past few months and reaching the highest level since November. 

Several key Fed officials, including Dallas Fed President Lorie Logan, Minneapolis Fed President Neel Kashkari, Chicago Fed President Austan Goolsbee, and Fed Governor Michelle Bowman, made market-moving speeches on Friday. 

U.S. Stocks

Fundamental Analysis: 

Most major tech stocks declined. Tesla dropped over 2%, Amazon over 1%, and Intel, Apple, Netflix, and Google saw slight decreases.  

In contrast, Nvidia climbed over 1%, while Microsoft and Meta experienced modest increases.  

Novavax Pharmaceuticals surged nearly 99%, marking the largest single-day gain since its U.S. IPO. 

The Nasdaq Golden Dragon China Index fell by 0.58% this week, contributing to a total drop of 1.93%.  

XPeng Motors declined over 5%, Nio over 4%, and Li Auto over 2%. Baidu and Futu Holdings fell over 1%, while iQiyi, JD.com, Weibo, Tencent Music, and Pinduoduo slightly decreased.  

Alibaba, Vipshop, Bilibili, Full Truck Alliance, and NetEase edged higher. Zeekr’s stock soared over 34% on its debut day. 

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq fell by 5.40 points, a 0.03% decrease, to 16,340.87. 
• Dow rose by 125.08 points, a 0.32% increase, to 39,512.84. 
• S&P 500 rose by 8.60 points, a 0.16% increase, to 5,222.68. 

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s major indices started lower but ended higher.  

Key tech stocks led the recovery, with Alibaba rising nearly 4%, Meituan and Tencent over 1%, JD.com and Xiaomi turning green, while Kuaishou and Baidu dipped slightly.  

The year’s first high-speed train tender exceeded last year’s total, boosting related stocks. CRRC surged over 9%, reaching a four-year high. 

WuXi AppTec opened strong but receded, with an initial surge of nearly 15% dropping to 3.67%.  

Reuters reported that U.S. lawmakers revised the bill restricting WuXi AppTec and other Chinese biotech companies, extending the deadline to sever biotech ties to 2032. The legislation requires U.S. firms to end collaborations with these entities by then. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) rose by 0.47%, to 19,052.14. 
• Hang Seng Tech Index (HSTECH) fell by 1.02%, to 4,002.71. 
• Hang Seng China Enterprises Index (HSCEI.) rose by 0.39%, to 6,745.09. 

FTSE China A50 Index

China’s main indices had a shaky morning, with the ChiNext Index down by 0.67%. The gas and electric sectors bucked the trend and performed well. 

Sector-wise, the gas sector was strong in the morning, with Kaitian Gas up over 10% and Hongtong Gas hitting the upper limit.  

The rail transit equipment sector surged, with Railpower hitting the upper limit of 20cm and Connie Electric peaking mid-session.  

The shipping sector was strong, with Phoenix Shipping up over 7% leading the way, and COSCO Shipping up 6%. 

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.08%, to 3,151.94. 
• Shenzhen Component Index (SZCOMP) fell by 0.37%, to 9,695.08. 
• ChiNext Index (CHINEXT) fell by 0.67%, to 1,865.55. 
• SSE Sci-Tech Innovation 50 Index fell by 0.39%, to 764.19. 

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