On Wednesday, U.S. stocks closed lower with the S&P 500 and Nasdaq recording their fourth consecutive day of declines.  

Nvidia saw a significant drop of nearly 4%. The market’s focus remains on corporate earnings and the future of the Federal Reserve’s monetary policies.  

The Fed’s Beige Book reported slight economic expansion, but noted increasing difficulties for businesses to pass on costs. 

So far, less than 10% of S&P 500 companies have reported earnings, with three-quarters exceeding Wall Street expectations. 

Fed Vice Chair Philip Jefferson expressed on Tuesday that inflation is expected to continue declining as the Fed maintains its restrictive policy stance.  

He highlighted the uncertainty surrounding inflation, suggesting that if upcoming data indicates that inflation is more persistent than expected, it would be appropriate to maintain the current restrictive policy stance for a longer period. 

U.S. Stocks

Fundamental Analysis: 

Major tech stocks mostly fell, with Nvidia dropping nearly 4%, and Tesla, Amazon, and Meta each declining over 1%.  

The semiconductor and chip sectors saw significant losses, with ARM down nearly 12%, ASML over 7% after reporting declines in first-quarter net profit and sales, AMD over 5%, Micron Technology, and NXP Semiconductors each over 4%, and Broadcom over 3%.  

Conversely, the airline and precious metals sectors saw gains, with United Airlines surging over 17% after significantly exceeding quarterly revenue expectations, and American Airlines over 6%. Alaska Airlines and JetBlue each rose over 4%, with Sandstorm Gold and Lamgold each up over 3%. 

The Nasdaq Golden Dragon China Index fell by 0.29%.  

XPeng Motors rose over 3%, NIO over 2%, and iQIYI and Li Auto each over 1%, with slight gains in Weibo, Bilibili, JD.com, and Tencent Music.  

Vipshop dropped over 2%, with Baidu and Alibaba each over 1%, and Futu Holdings, NetEase, and Pinduoduo slightly down. 

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq dropped 181.88 points or 1.15%, closing at 15,683.37. 
• Dow decreased by 45.66 points or 0.12%, to 37,753.31. 
• S&P 500 fell 29.20 points or 0.58%, to 5,022.21. 

Hong Kong Stock Market

Fundamental Analysis: 

Today, Hong Kong’s major indices started low but mostly ended higher.  

Tech stocks generally rose, with Tencent up over 2%, and Baidu and Lenovo each over 1%. NetEase and Xiaomi also saw increases, while JD.com showed slight losses.  

The financial sector strengthened collectively, led by insurers, with China Pacific Insurance up over 6%, and CICC over 4%.  

Individual automotive dealers also performed well, with Zhongsheng Group up over 9%.  

Apple concept stocks warmed up with AAC Technologies rising over 3%.  

Despite international oil prices dropping sharply, oil stocks collectively declined. CNOOC and PetroChina each fell over 2%.  

Easing concerns over the Middle East, along with a rise in U.S. crude inventories and a stronger dollar, contributed to a significant decline in international oil prices on Wednesday.  

Brent crude for June delivery fell by $2.73 or 3.03%, closing at $87.29 per barrel, while WTI crude for May delivery dropped by $2.67 or 3.13%, to $82.69 per barrel—marking the largest decrease since March 20. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) rose 1.34%, to 16,469.29. 
• Hang Seng Tech Index (HSTECH) up 1.14%, to 3,378.23. 
• Hang Seng China Enterprises Index (HSCEI.) increased by 1.45%, to 5,833.02. 

FTSE China A50 Index

Fundamental Analysis: 

China’s three major A-share indices started the morning trading session with a dip but quickly recovered, turning positive by mid-session.  

The Shanghai Composite notably broke through the 3,100-point mark. The surge was led by sectors focused on flying cars and small home appliances, while stocks in oil and gas and power sectors lagged behind, showing notable declines. 

In the trading session, sectors related to flying cars, small home appliances, and humanoid robots experienced the most significant gains.  

On the flip side, sectors involved in oil and gas extraction, precious metals, and power recorded the largest drops.  

More specifically, the flying car sector saw substantial gains, with Jindun Shares hitting the daily trading limit of a 20 cm increase, and both CITIC Offshore Helicopter and Wanfeng Auto Wheel also reaching trading halts during the session.  

Additionally, Huami New Materials and Jianxin Shares each surged by more than 10%.  

The household appliances sector also showed strong performance, with Delmar hitting the daily limit up of 20 cm, and both Hongzhi Technology and Haidar seeing gains exceeding 10%.  

The humanoid robot sector, starting the day lower, rallied impressively with Mingzhi Electric nearing the trading limit.  

Meanwhile, the tourist attractions sector was buoyed, with Lingnan Holdings hitting the trading limit. 

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) up 0.55%, to 3,088.33. 
• Shenzhen Component Index (SZCOMP) up 0.72%, to 9,449.46. 
• ChiNext Index (CHINEXT) rose 0.45%, to 1,805.48. 
• SSE Sci-Tech Innovation 50 Index by 0.41%, to 753.99. 

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