The U.S. stock market closed with mixed performances on Monday.  

With trading hours shortened this week due to holidays, investors await further insights into inflation trends and the Fed’s interest rate outlook from the preferred February Personal Consumption Expenditure (PCE) price index. 

Following the Fed’s decision to maintain interest rates unchanged last Wednesday, signaling an expectation of three rate cuts this year, market sentiment remained buoyant. Consequently, post-Fed meeting, all three major U.S. stock indices hit record highs. 

According to Michael Wilson of B.Riley Wealth, the market’s upward trajectory over the past five months has been driven by looser financial conditions and higher valuations rather than fundamental improvements. 

U.S. Stock Market

Fundamental Analysis: 

Most large-cap tech stocks declined, with Microsoft, Meta, and Intel dropping over 1%, while Netflix, Google, and Apple saw marginal decreases. 

Tesla surged over 1%, while Nvidia and Amazon edged slightly higher.  

Micron Technology saw a remarkable 6% surge following a meeting between U.S. Commerce Secretary Wang Wentao and Micron CEO Sanjay Mehrotra, discussing Micron’s development plans in China. 

Popular Chinese stocks experienced mixed movements, with the Nasdaq Golden Dragon China Index falling by 0.07%.  

Weibo and Baidu surged over 3%, while Tencent Music and JD.com rose over 1%.  

XPeng, Nio, iQIYI, and Futu Holdings saw slight gains. Pinduoduo dropped over 2%, while NetEase and Bilibili fell over 1%, and Alibaba and Vipshop saw marginal declines. 

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq fell by 44.35 points or 0.27%, closing at 16,384.47. 
• Dow Jones dropped 162.26 points or 0.41%, ending at 39,313.64. 
• S&P 500 Index saw a decrease of 15.99 points or 0.31%, closing at 5,218.19. 

Hong Kong Stock Market

Fundamental Analysis: 

The three major indices in Hong Kong witnessed a bottoming-out rebound before weakening again.  

In terms of sector performance, most internet-related stocks rose, with Baidu leading the pack with a 3% surge.  

Lenovo and Tencent rose over 1%, while Xiaomi and JD.com followed suit. Alibaba, however, saw a 1% decline.  

Real estate stocks performed well, with Shimao Group and Longfor Group seeing approximately 3% gains.  

Some automotive stocks showed strength, with Li Auto rising by over 6%.  

Conversely, gold stocks collectively pulled back, with Zijin Mining falling nearly 4%. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped by 0.08%, closing at 16,461.11. 
• Hang Seng Tech Index (HSTECH) fell by 0.11%, closing at 3,433.25. 
• Hang Seng China Enterprises Index (HSCEI.) rose by 0.17%, closing at 5,764.42. 

FTSE China A50 Index

Fundamental Analysis: 

At the opening bell, the three major indices of A shares saw mixed movements, with the market rallying before pulling back.  

Sector-wise, battery, glass fiber, banking, and real estate service sectors led in gains, while gaming, software development, precious metals, internet services, coal, and telecommunications sectors led in declines.  

Themes such as Xiaomi cars, blade batteries, solid-state batteries, fluorine chemical industry, flying cars, and pork concepts remained active. 

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) dropped by 0.38%, closing at 3,014.9. 
• Shenzhen Component Index (SZCOMP) fell by 0.3%, closing at 9,394.25. 
• ChiNext Index (CHINEXT) dropped by 0.02%, closing at 1,833.88. 
• SSE Sci-Tech Innovation 50 Index saw a decrease of 1.28%, closing at 771.61. 

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