The U.S. stock market closed lower on Tuesday. The rise in U.S. Treasury yields, with the 10-year yield surpassing 4%, dominated market discussions. 

Investors are assessing earnings reports from major banks such as Goldman Sachs and Morgan Stanley.The New York State Manufacturing Index for January fell significantly below expectations, indicating a contraction in the manufacturing sector.  

Federal Reserve official Waller suggested that the pace of interest rate cuts might be slower than the market anticipates. 

On Tuesday, U.S. Treasury yields rose, with the 10-year yield increasing by 9.3 basis points to 4.043%.  

The 2-year yield rose by 6.9 basis points to 4.207%, and the 30-year yield rose by 3.6 basis points to 4.234%.  

The focus remains on earnings season, with several banks continuing to release their reports.  

Investors are particularly interested in insights into consumer health and further clues regarding credit card payments and delinquency data. 

Michael Wilson noted, “This downward revision sets a lower bar for this earnings season, which could lead to earnings per share exceeding expectations once again.” 

U.S. Stock Market

Fundamental Analysis: 

Most major tech stocks declined, with Netflix dropping over 2%, and Meta and Apple falling over 1%.  

However, NVIDIA defied the trend, rising over 3% to achieve a historic high.  

Precious metals, industrial materials, and energy sectors led the declines, with Plug Power plummeting over 11%, and First Solar and Alcoa dropping over 7%.  

In contrast, semiconductor and robotics sectors performed well, with AMD rising over 8%, and Kornit Digital and Micron Technology seeing gains. 

Popular Chinese stocks experienced widespread declines, causing the Nasdaq Golden Dragon China Index to fall by 3.81%.  

Notable drops included XPeng Motors and NIO, both down over 9%, and iQIYI down over 6%. Other major tech players, including JD.com, Tencent, and Baidu, also recorded losses. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones fell by 231.86 points, a 0.62% decrease, closing at 37,361.12 points. 
• Nasdaq dropped by 28.41 points, a 0.19% decrease, closing at 14,944.35 points. 
• S&P 500 Index declined by 17.85 points, a 0.37% decrease, closing at 44,765.98 points. 

Hong Kong Stock Market

Fundamental Analysis: 

All three major Hong Kong indices experienced significant declines.  

Tech stocks collectively suffered, with Meituan falling over 5%, and JD.com and Xiaomi both dropping over 4%.  

Tencent, Alibaba, and Kuaishou saw losses of nearly 3%. Automotive stocks witnessed a collective slump, with NIO falling over 9% and XPeng down nearly 9%.  

Real estate stocks were among the top decliners, with China Jinmao and China Overseas Land & Investment both dropping over 7%. 

Automotive stocks collectively plunged, with NIO down over 9%, and XPeng down over 8%.  

In response to Tesla’s price cuts on various models, which included the Model 3 Refresh Edition priced at CNY 245,900, the Model Y Long Range Refresh Edition at CNY 299,900, and the Model Y at CNY 258,900, Daiwa commented that Tesla’s price reduction would have a negative impact on the overall atmosphere of the Chinese auto industry. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell by 2.81%, closing at 15,419.68 points. 
• Hang Seng Tech Index (HSTECH) dropped by 3.87%, closing at 3,197.25 points. 
• Hang Seng China Enterprises Index (HSCEI.) declined by 3.00%, closing at 5,183.25 points. 

FTSE China A50 Index

Fundamental Analysis: 

All three major A-share indices opened lower, experiencing initial market fluctuations and subsequent rebounds.  

The Shanghai Composite Index and ChiNext Index both briefly dropped over 1% in the morning.  

Notable sectors with strong performance included household appliances, diversified finance, textiles and clothing, jewelry, and railways.  

On the downside, tourism and hotel, photovoltaic equipment, precious metals, commercial retail, and energy metal sectors faced significant declines. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) dropped by 0.64%, closing at 2,875.6 points. 
• Shenzhen Component Index (SZCOMP) fell by 0.89%, closing at 8,912.18 points. 
• ChiNext Index (CHINEXT) dropped by 1.21%, closing at 1,730.99 points 
• SSE STAR Market 50 Index (SSE50) declined by 1.08%, closing at 769 points. 

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