U.S. Stocks 

Fundamental Analysis: 

U.S. stocks on Wall Street closed sharply higher Thursday, 26th May 2022, as retailers issued upbeat earnings estimates and concerns about overly aggressive interest rate hikes by the Federal Reserve eased, boosting investor buying sentiment.

All three major U.S. stock indexes recorded strong gains, with economically sensitive non-essential consumer goods stocks and chip stocks outperforming the broader market.

The Nasdaq, which is dominated by technology stocks, gained the most, surging nearly 2.7%, with Apple, Tesla and Amazon all providing a boost. All three major stock indexes are expected to end their longest weekly declines in decades, with the S&P plunging 14.1% during the period, just one step away from confirming it is in a bear market.

This week, all three major stock indexes are poised to post their biggest weekly gains since mid-March. Economic data released on Thursday, including initial jobless claims, pending home sales and gross domestic product (GDP), were mixed, suggesting the economy is showing just enough weakness to prompt the Federal Reserve to turn dovish by the fall.

The Dow Jones Industrial Average rose 516.91 points to close at 32,637.19, or 1.61%, the S&P 500 rose 79.11 points, or 1.99%, to close at 4,057.84, and the Nasdaq jumped 305.91 points, or 2.68%, to 11,740.65.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 32781-line today. If the Dow runs stably above the 32781-line, it will pay attention to the suppression strength of the 32975 and 33233 positions. If the Dow falls below the 32781-line, it will pay attention to the support strength of the 32455 and 32083 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks saw a wave of rebound. The Hang Seng Index (HSI) opened 2.6% higher, and the Hang Seng TECH Index (HSTECH) jumped 4.5%.

On the market, large technology stocks rose in general. Baidu, Inc. (9888.HK), Zhihu Inc. (2390.HK) rose nearly 15%, Alibaba Group Holding Limited (9988.HK) rose more than 12%, Bilibili Inc. (9626.HK) rose more than 9%, Meituan (3690.HK), JD.com, Inc. (9618.HK) rose nearly 5%, while NetEase, Inc. (9999.HK) rose more than 4%.

New energy car stocks opened high, NIO Inc. (9866.HK), Li Auto Inc. (2015.HK) rose nearly 7%, XPeng Inc. (9868.HK) rose nearly 6%.

Baidu, Inc. (9888.HK) rose nearly 15%, through adjusted operating profit of 4 billion yuan in the first quarter, exceeding market forecasts.

Meanwhile, Alibaba Group Holding Limited (9988.HK) rose more than 12%, with its fourth-quarter revenue of 204.05 billion yuan, up 8.9% year-on-year.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then pay attention to the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support of the 18606-line.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 13157-line today. If the A50 runs steadily below the 13157-line, pay attention to the support strength of the two positions of 12945 and 12733. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13544 and 13970.

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