In Wednesday’s trading, the U.S. stock market closed with mixed results as Nasdaq and the S&P 500 index experienced slight declines. Nvidia led the decline in the technology sector.

Market focus continues to be on U.S. inflation data and the outlook for Federal Reserve interest rate cuts.

According to data released by the U.S. Department of Labor on Tuesday (March 12), the U.S. Consumer Price Index (CPI) rose by 3.2% year-on-year in February, higher than the previous value and expectations of 3.1%, reaching a new high since December 2023.

The CPI rose by 0.4% month-on-month in February, in line with expectations, but higher than the previous value of 0.3%, indicating a rebound in US inflation and a reacceleration.

Gabriela Santos, global market strategist at JPMorgan Asset Management, said, “We don’t think the Fed will kill this economic cycle. Ultimately, what ends this expansion will depend on whether we get some kind of shock. Before such a shock arrives, we may continue to be in what we consider the late stages of the cycle.”

U.S. Stock Market

Fundamental Analysis: 

Popular Chinese concept stocks showed mixed movements, with Manbang surging over 12%, while Pinduoduo rose over 3%. Baidu, JD.com, and Futu Holdings gained over 2%, and NetEase rose over 1%.

However, Alibaba and Weibo saw slight increases, while Nio fell over 4%. Other losers included Ideanomics, iQiyi, and XPeng, all declining over 3%, and Bilibili falling over 1%. Tencent Music and Vipshop experienced slight declines.

Most large-cap technology stocks fell, with Tesla dropping over 4% to close at its lowest since mid-May last year, with a total market capitalization falling below $540 billion, after Morgan Stanley downgraded Tesla’s rating to underweight with a target price of $125.

Intel also fell over 4% as the Pentagon canceled a $2.5 billion subsidy plan for Intel chips. Apple and Nvidia fell over 1%, while Netflix, Microsoft, and Meta saw slight declines, and Amazon and Google saw slight gains.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq fell 87.87 points, or 0.54%, to close at 16,177.77.
• Dow rose 37.83 points, or 0.10%, to close at 39,043.32.
• S&P 500 fell 9.96 points, or 0.19%, to close at 5,165.31.

Hong Kong Stock Market

Fundamental Analysis: 

Today, the three major indices of the Hong Kong stock market opened higher but closed lower.

On the market front, technology and internet stocks generally declined, with Bilibili dropping nearly 4%, Lenovo nearly 3%, and Kuaishou and Xiaomi falling over 1%.

Tencent and Alibaba fell by about 0.6%. Stocks related to CXO concepts had mixed performances, with Tiger Medicine surging over 19% and WuXi AppTec falling over 9%.

Photovoltaic stocks saw the largest declines, with Sinolink Worldwide falling over 5%, while new energy vehicle companies all fell, with XPeng falling over 5%. Insurance stocks performed poorly, with AIA Group falling over 4%.

Gold stocks bucked the trend, with China Gold International surging over 10%. Despite stronger-than-expected US inflation data, investors remain hopeful of a Fed rate cut in June.

Additionally, escalating geopolitical tensions and a weakening US dollar continue to support safe-haven demand. Gold futures for April on the COMEX rose by 0.68% to close at $2,180.80 per ounce.

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index fell 0.57% to close at 16,984.44.
• Hang Seng Tech Index fell 1.19% to close at 3,612.70.
• State-Owned Enterprises Index fell 0.21% to close at 5,920.18.

FTSE China A50 Index

Fundamental Analysis: 

The three major A-share indices opened with mixed results, with the market surging in the early session before fluctuating downward.

All three indices turned downwards afterward, and the A-share market entered a period of consolidation.

In terms of industry sectors, biopharmaceuticals, precious metals, medical services, chemical pharmaceuticals, automotive services, and tourism hotels performed well, while gaming, cultural media, aerospace, internet services, and consumer electronics declined.

Automotive dismantling, CRO, innovative drugs, basic metals, gold concepts, and medical waste treatment remained active.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite rose 0.01% to close at 3,044.17.
• Shenzhen Component fell 0.15% to close at 9,590.11.
• ChiNext fell 0.23% to close at 1,890.79.
• Science and Technology Innovation 50 Index fell 0.73% to close at 808.95.

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