The U.S. stock market closed higher on Monday, with both the Dow Jones Industrial Average (DJIA) and the S&P 500 reaching historic highs.  

This week, investors are closely monitoring earnings reports from major tech companies, the Federal Reserve’s monetary policy meeting, and the U.S. nonfarm payroll data scheduled for Friday.  

Heightened tensions in the Middle East have added to the overall market uncertainty. 

On Monday, U.S. Treasury bond yields decreased, with the 10-year yield dropping by 8.6 basis points to 4.074%.  

The 30-year yield fell by 7.2 basis points to 4.318%, and the 2-year yield decreased by 5.5 basis points to 4.31%. 

This week, a significant number of earnings reports are anticipated, especially from tech giants that make up 19% of the S&P 500.  

Companies such as Microsoft, Apple, Meta, Amazon, and Google’s parent company, Alphabet, are among the leading members of the “Big Seven” that have been driving the U.S. stock rebound this year. 

U.S. Stock Market

Fundamental Analysis: 

Most Chinese stocks experienced declines, with the Nasdaq Golden Dragon China Index dropping by 1.03%.  

Notable decliners include Pinduoduo (down over 8%), Manbang Group (down over 2%), JD.com, and Bilibili (both down over 1%). Tencent Music, iQiyi, and Baidu saw slight increases. 

Leading tech stocks witnessed gains, with Tesla rising over 4%, NVIDIA over 2%, reaching a record closing high. Amazon, Meta, and Microsoft also saw increases exceeding 1%, with the latter two reaching historic highs. Google and Netflix experienced modest gains, while Apple saw a slight decline. 

Autonomix Medical Inc., a medical device development company, gained 1.4% on its U.S. IPO debut, briefly rising approximately 52%. iRobot declined over 8% as Amazon terminated its merger plan due to opposition from the EU antitrust regulator. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones rose by 224.02 points (0.59%) to 38,333.45. 
• Nasdaq increased by 172.68 points (1.12%) to 15,628.04. 
• S&P 500 Index rose by 36.96 points (0.76%) to 4,9270.93. 

Hong Kong Stock Market

Fundamental Analysis: 

All three major Hong Kong indices opened lower. Tech stocks, including NetEase and Kuaishou, saw declines exceeding 4%, while JD.com dropped over 3%. Tencent and Meituan both declined over 2%, and Alibaba and Baidu fell over 1%.  

Semiconductor-related stocks, with SMIC leading, declined over 4%. The automobile sector collectively declined, with BYD falling over 5%, while Evergrande Auto rose nearly 5%. Evergrande Property fell over 1%, and China Evergrande has yet to resume trading. 

The automotive sector witnessed a collective downturn, with BYD falling over 5%. BYD projected a year-on-year profit growth between 74.46% and 86.49%, aligning with market expectations. The company forecasted a 74.5%-86.5% YoY growth in 2023 net profit and a 75.2%-89.9% growth in adjusted net profit. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped by 1.95% to 15,764.13. 
• Hang Seng Tech Index (HSTECH) declined by 2.68% to 3,117.65. 
• Hang Seng China Enterprises Index (HSCEI.) fell by 2.17% to 5,291.41. 

FTSE China A50 Index

Fundamental Analysis: 

In the A-share market, all three major indices opened lower. During early trading, the Shanghai Composite Index exhibited a volatile trend, with a temporary decline of up to 1%. Both the Shenzhen Component Index and the ChiNext Index reached new lows, with the latter falling below 1600 points. 

Among sectoral performances, only shipbuilding, electricity, securities, power equipment, and fertilizer industries showed gains.  

Declines were notable in electronic chemicals, education, household goods, brewing, gaming, and real estate development.  

Notable movements occurred in brain-computer interface, grain concepts, brokerage concepts, and robotics. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) declined by 0.62% to 2865.6. 
• Shenzhen Component Index (SZCOMP) declined by 0.89% to 8505.02. 
• ChiNext Index (CHINEXT) declined by 1.11% to 1605.79. 
• SSE STAR Market 50 Index (SSE50) declined by 2.08% to 710.2. 

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