On Tuesday, U.S. stock performance was mixed. The Dow fell over 200 points, while the Nasdaq broke the 17,000 mark to reach a new all-time high. Nvidia’s stock price surged past $1,100, bringing its market cap to over $2.8 trillion.

The U.S. stock settlement cycle has now been shortened to T+1. This week, the market is focused on personal spending and PCE inflation data and their potential impact on the Federal Reserve’s monetary policy. Fed hawk Neel Kashkari reiterated the possibility of further rate hikes.

Monday was Memorial Day in the U.S., and the stock market was closed. As traders returned from the long weekend, they encountered a significant change in U.S. market history: the transition to the “T+1” settlement rule.

Under this rule, U.S. stock settlements will occur within one business day instead of two, marking the fastest transaction settlement in about a century.

The U.S. Securities and Exchange Commission (SEC) noted that in the short term, the market might see an increase in settlement failures. Brokers and other market participants will need an adjustment period to adapt to the faster and more efficient transaction processing required by T+1 settlement.

US Stocks

Fundamental Analysis: 

Most major tech stocks rose. Nvidia surged nearly 7% to a new all-time high, with a market cap reaching $2.8 trillion, just $100 billion short of Apple. AMD rose over 3%, while Tesla fell more than 1%. Google, Amazon, and Meta saw gains of less than 1%.

The metals, mining, and semiconductor sectors led the gains, with Arm rising nearly 9%, Pan American Silver up over 7%, Hecla Mining up over 5%, Century Aluminum up over 4%, and ASML and Alcoa up over 3%. Micron Technology, Kaiser Aluminum, and Southern Copper rose more than 2%.

Most popular Chinese stocks rose, with the Nasdaq Golden Dragon China Index up 0.45%. Zeekr climbed over 5%, Futu Holdings rose more than 3%, XPeng Motors gained more than 2%, and NIO and Weibo both rose over 1%. NetEase, Tencent Music, Full Truck Alliance, Li Auto, and Vipshop saw modest gains. Pinduoduo fell nearly 5%, JD.com dropped over 1%, and Alibaba, iQiyi, Baidu, and Bilibili saw slight declines.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones: -216.73 points, -0.55%, at 38,852.86
• Nasdaq: +99.09 points, +0.59%, at 17,019.88
• S&P 500: +1.32 points, +0.02%, at 5,306.04

Hong Kong Stock Market

 Fundamental Analysis: 

Hong Kong’s three major indices opened lower and continued to decline. Tech stocks led the losses, with Meituan down over 4%, JD.com and Alibaba down nearly 4%, and Baidu down more than 2%.

Pharmaceutical stocks fell sharply, with Kangning Jery Pharmaceutical plummeting nearly 40% due to disappointing clinical trial results. SaaS stocks were weak, with Chinasoft International down more than 6%.

Some auto stocks gained, with BYD rising nearly 4%. Solar stocks bucked the trend, with GCL Technology up over 9%.

BYD rose nearly 4%. On May 28, BYD announced its latest plug-in hybrid technology—the fifth-generation DM-i dual-mode hybrid system, continuing to improve and reduce fuel consumption.

The system reportedly achieves an engine thermal efficiency of 46.06%, with a fuel consumption of 2.9L per 100 kilometers and a combined range of 2,100 kilometers.

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index: -1.54%, at 18,531.29
• Hang Seng Tech Index: -1.89%, at 3,781.62
• Hang Seng China Enterprises Index: -1.56%, at 6,581.59

FTSE China A50 Index

 Fundamental Analysis: 

Mainland China’s three major indices rose slightly after an initial surge and subsequent pullback in the morning session. Solar, battery, and cyclical stocks, such as non-ferrous metals, strengthened.

The solar sector rebounded, with Yuxing Co., Tianchen Co., and Haiyuan Composite up by the daily limit. Resource stocks, including Huayu Mining, Hunan Gold, Zhangyuan Tungsten, and Xianglu Tungsten, also hit their daily limits.

AI PC concept stocks rose, with Guangda Tongchuang and Furong Technology hitting the daily limit. The real estate sector rebounded, with Shirong Zhaoye and Zhongtian Services hitting the daily limit.

Conversely, the virtual power plant concept adjusted, with Jiuzhou Group, Xinzhi Port, Zhongzhi Technology, and Guoneng Rixin falling more than 5%.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index: +0.33%, at 3,119.89
• Shenzhen Component Index: +0.56%, at 9,443.25
• ChiNext Index: +0.67%, at 1,818.38
• STAR Market 50 Index: +0.49%, at 738.45

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