U.S. stock market closed with mixed results on Monday, as the S&P 500 index recorded its second consecutive day of decline.

This week, market attention is focused on the February Consumer Price Index (CPI) and Producer Price Index (PPI) to gauge inflation trends and the Fed’s interest rate trajectory.

The White House expects a significant slowdown in U.S. economic growth this year, with inflation expected to remain elevated.

Amidst cooling enthusiasm for AI, tech giants like Nvidia experienced consecutive declines, contributing to the two-day downturn in both the S&P 500 and Nasdaq.

Mislav Matejka, a strategist at J.P. Morgan, pointed out on Monday that the valuations of the seven tech giants that have been driving Wall Street to record highs are currently lower than the five-year average of other components of the S&P 500 index.

U.S. Stock Market

Fundamental Analysis: 

Large-cap tech stocks experienced mixed performance, with AMD and TSMC falling over 5%, while Meta and AMD dropped over 4%. Nvidia saw a 2% decline, while Amazon and Netflix dipped nearly 2%. Apple, Google, Tesla, and Intel, however, rose over 1%.

Precious metal stocks led the gains, with Harmony Gold surging over 11%, followed by Hecla Mining and U.S. Gold rising over 6% and 5%, respectively.

Popular Chinese stocks generally saw gains, with the Nasdaq Golden Dragon China Index rising by 2.06%.

KSY soared nearly 30%, while Bilibili surged over 13%. Pinduoduo, NIO, and JD.com rose over 5%, while Futu Holdings, iQiyi, Full Truck Alliance, and Baidu gained over 3%. Weibo rose over 2%, while Alibaba, NetEase, and Pinduoduo saw gains exceeding 1%. However, Vipshop Holdings and Tencent Music saw declines of over 2% and 1%, respectively.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq fell by 65.84 points (-0.41%) at 16,019.27 points.
• Dow Jones rose by 46.97 points (+0.12%) at 38,769.66 points.
• S&P 500 declined by 5.75 points (-0.11%) at 5,117.94 points.

Hong Kong Stock Market

Fundamental Analysis: 

All three major Hong Kong indices opened and rose. In terms of sectors, tech stocks rallied collectively, with Xiaomi Group surging over 9%, followed by Bilibili with a 7% increase, and JD.com with a 6% rise.

The pharmaceutical outsourcing sector continued its rebound, led by WuXi AppTec with a gain of over 6%.

Real estate stocks performed well, with Sunac China Holdings Group rising nearly 9%. The catering sector showed strong momentum, with Haidilao International Holdings rising by over 9%. Haidilao International Holdings surged nearly 9%.

Shanghai Securities noted that since 2023, with the strong recovery of the catering market, the trend of franchising among leading catering companies has become more pronounced, with many brands choosing to expand their market through franchising. The strong trend of recovery in the catering industry is accelerating the process of chain operation.

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index rose by 1.70% at 16,870.31 points.
• Hang Seng Tech Index surged by 3.00% at 3,586.80 points.
• Hang Seng China Enterprises Index increased by 2.04% at 5,866.39 points.

FTSE China A50 Index

Fundamental Analysis: 

The three major A-share indices opened with mixed results, experiencing fluctuations after opening.

In terms of sectors, wine, traditional Chinese medicine, flying cars, robot actuators, CRO, spacetime big data, and integrated automotive die-casting sectors performed well.

Coal, precious metals, non-ferrous metals, liquid cooling concepts, maglev concepts, power, CPO concepts, and steel sectors performed poorly, leading the market decline.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index declined by 0.47% at 3,054.12 points.
• Shenzhen Component Index rose by 0.05% at 9,586.75 points.
• ChiNext Index increased by 0.22% at 1,894.59 points.
• Science and Technology Innovation Board (STAR 50 Index) fell by 0.35% at 815.23 points.

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