The U.S. stock market closed with mixed results on Tuesday, witnessing a slight decline in the Dow Jones Industrial Average (DJI) while the S&P 500 once again reached a new closing record.  

Several major companies, including airlines, GE, and 3M, released their financial reports. Disappointing reports from 3M, Johnson & Johnson, D.R. Horton, and Lockheed Martin left an impact.  

Market attention is now focused on key economic data later this week, such as PMI, GDP, and PCE. 

Despite warnings from the Federal Reserve about potential interest rate cuts, the stock market remains largely unaffected.  

Investors, even after experiencing one of the most aggressive policy tightening cycles in decades, remain optimistic about the economy’s resilience. 

Emily Roland, Co-Chief Investment Strategist at John Hancock Investment Management, remarked, “Excitement has waned at this moment; the Fed’s pause on rate hikes is behind us, and everyone is a bit more sober. Some valuation bubbles in the market may have inflated excessively, requiring caution.” 

U.S. Stock Market

Fundamental Analysis: 

Popular Chinese concept stocks experienced widespread gains, with the Nasdaq Golden Dragon Index rising by 4.84%.  

Bilibili surged over 9%, Alibaba nearly 8%, and NetEase, Baidu, and JD.com all rose over 7%.  

Manbang Group and Futu Holdings gained over 5%, while XPeng Motors rose over 4%.  

Tencent Music, Vipshop, and iQiyi saw modest increases, while Pinduoduo experienced a slight decline. 

Among major tech stocks, Intel rose over 1%, while Apple, Microsoft, Google, Amazon, NVIDIA, Tesla, and Meta saw gains below 1%.  

Leading sectors included airlines and metal raw materials, with Century Aluminum rising over 10%, Alcoa up over 6%, and United Continental Holdings gaining over 5%.  

Real estate, cruise, and transportation sectors faced notable declines, with TuSimple falling nearly 16%, Carnival Cruise down over 2%, and Beazer Homes and MI Homes dropping over 5%. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones fell by 96.36 points, down 0.25%, closing at 37,905.45 points. 
• Nasdaq rose by 65.66 points, up 0.43%, closing at 15,425.94 points. 
• S&P 500 Index increased by 14.17 points, up 0.29%, closing at 4,864.60 points. 

Hong Kong Stock Market

Fundamental Analysis: 

In Hong Kong, all three major indices experienced initial gains but later witnessed fluctuations.  

In the tech sector, Alibaba rose over 4%, while Baidu and NetEase gained over 3%, and Meituan and Kuaishou rose over 2%.  

JD.com, however, saw a slight decrease. Automotive stocks faced downward pressure, with XPeng Motors falling over 10% and Great Wall Motor dropping over 9%.  

Mechanical stocks led the gains, with China National Heavy Duty Truck Group rising over 18%.  

Petroleum and coal stocks collectively rose, with China Petroleum gaining over 3% and South Gobi Energy rising nearly 9%. 

Alibaba surged over 4%, with recent reports indicating that Jack Ma purchased $50 million worth of Hong Kong-listed stocks in the last quarter. 

Blue Pool Management, controlled by Alibaba’s co-founder Joseph Tsai, bought around $151 million worth of Alibaba’s U.S.-listed stocks in the same period. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) increased by 0.80%, closing at 15,476.85 points. 
• Hang Seng Tech Index (HSTECH) rose by 0.64%, closing at 3,167.95 points. 
• Hang Seng China Enterprises Index (HSCEI.) gained by 1.01%, closing at 5,192.82 points. 

FTSE China A50 Index

Fundamental Analysis: 

In the A-share market, the three major indices opened higher but later experienced fluctuations, turning negative at one point.  

The ChiNext Index fell over 1%, but indices showed a slight recovery in the morning session.  

Leading sectors included diversified finance, real estate development, railway and highway, jewelry, real estate services, and household light industry.  

Sectors like photovoltaic equipment, semiconductor materials, batteries, energy metals, and electronic components faced notable declines. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.15%, closing at 2,766.79 points. 
• Shenzhen Component Index (SZCOMP) dropped by 1.16%, closing at 8,496.62 points. 
• ChiNext Index (CHINEXT) declined by 1.68%, closing at 1,659.34 points. 
• SSE STAR Market 50 Index (SSE50) dropped by 1.83%, closing at 736 points. 

Forward-looking Statements    
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.     

Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.     

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.    

Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.

Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.

Disclaimer    
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.