U.S. stock market mixed on Thursday, with the Nasdaq rising for the fifth consecutive trading day. All three major indices recorded declines in August. The U.S. core PCE inflation index for July increased by 4.2% year-on-year, meeting expectations. Market attention shifts to Friday’s non-farm payroll data release. 

U.S. Stocks 

Fundamental Analysis: 

In terms of economic data on Thursday, the U.S. Commerce Department reported that the U.S. Personal Consumption Expenditure (PCE) Index for July met market expectations but indicated that inflation remained elevated.  

The Federal Reserve’s favored inflation metric, the Core PCE, increased by 0.2% month-on-month and 4.2% year-on-year, both in line with market expectations.  

Earlier, Federal Reserve Chair Powell had noted at last week’s Jackson Hole central banking policy symposium that the central bank expected higher inflation data for August. 

Thursday marked the final trading day of August. During August, the Dow Jones Industrial Average fell by 2.36%, the Nasdaq dropped by 2.17%, and the S&P 500 declined by 1.77%. 

Most large tech stocks saw gains, with Amazon rising over 2%, Intel up nearly 2%, and Qualcomm increasing by over 1%. Broadcom surged over 3%, and Nvidia made slight gains, with both stocks reaching new closing highs.  

The computer hardware and software application sectors led the gains, with Shopify surging over 10%, Western Digital rising over 5%, and AMD gaining over 2%. Healthcare plans and precious metals sectors declined, with gold resources dropping over 5%,  

UnitedHealth and Coreldan Mining falling over 3%, and Heckler & Koch Mining down over 2%. “Vietnam’s Tesla,” VinFast, fell nearly 16%, with its market value dropping to around $80 billion. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average fell by 168.33 points, a decrease of 0.48%, closing at 34,721.91 points. 
• Nasdaq Composite Index rose by 15.66 points, an increase of 0.11%, closing at 14,034.97 points. 

• S&P 500 Index dropped by 7.21 points, a decrease of 0.16%, closing at 4,507.66 points. 

Hong Kong Stocks 

Fundamental Analysis: 

Due to a typhoon, the Hong Kong Stock Exchange suspended trading on September 1st, 2023. 

FTSE China A50 Index 

Fundamental Analysis: 

On September 1st, A-shares opened with mixed movements, briefly rising in the early market, then quickly retreating and exhibiting a volatile trend.  

The ChiNext Index briefly turned negative during intraday trading. Additionally, the CSI 50 Index performed well with a rise of over 2%, while the STAR 50 Index fell by more than 1%.  

The B-share index, which saw significant declines yesterday, stabilized and fluctuated. The total trading volume of the Shanghai and Shenzhen stock markets reached ¥4,809.98 billion, and trading through the Shanghai-Shenzhen Stock Connect was temporarily suspended.  

Thirty stocks in both markets reached their daily trading limits (including ST stocks), with none hitting their lower limits. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) increased by 0.23%, closing at 3,127.19 points. 
• Shenzhen Component Index (SZCOMP) rose by 0.25%, closing at 10,443.93 points. 
• ChiNext Index (CHINEXT) decreased by 0.23%, closing at 2,097.75 points. 
• SSE STAR Market 50 Index (SSE50) fell by 1.53%, closing at 928.19 points. 
  
  

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