The U.S. stock market finished on Thursday with varied performances. The Dow Jones surged by 520 points, marking a fresh high for the year. All three major indices posted gains exceeding 8.7% in November.  

October’s PCE index reflected anticipated inflation, while employment data indicated a cooling labor market.  

Comments from Federal Reserve officials suppressed expectations for a rate cut. 

Morgan Stanley’s Chief Global Equity Strategist, Dubravko Lakos-Bujas, mentioned that the S&P 500 index might face a decline by the end of 2024. 

This anticipated fall is due to multiple factors: a global economic slowdown, shrinking household savings, and persistent geopolitical risks. 

These risks include the potential impact of the U.S. national elections on policy fluctuations. The forecast suggests the index could reach around 4200 points, marking an approximate 8% decrease from its current level. 

U.S. Stock Market

Fundamental Analysis: 

Most large-cap tech stocks saw declines, with Nvidia falling over 2%, and Meta, Google, and Tesla dropping over 1%. 

Top-performing sectors included space exploration, shipping, and metal processing, with Boeing surging over 3%, and GenCore Shipping Trade up over 2%. Virgin Galactic also rose by over 1%. 

Conversely, sectors like robotics, blockchain, and semiconductor industries experienced declines. AMD, Coinbase dropped over 2%, while Tower Semiconductor, NVIDIA, and Broadcom dipped over 1%. 

VinFast surged by over 11%, announcing plans to showcase its latest V9 electric vehicle at the 28th United Nations Climate Change Conference (COP28). 

In popular Chinese concept stocks, the Nasdaq Golden Dragon China Index rose by 0.08%, accumulating a 3.72% increase in November.  

Pinduoduo soared over 4%, surpassing a $190 billion market cap, again overtaking Alibaba. Tencent Music rose over 2%, while NIO gained over 1%.  

Meanwhile, Weibo plummeted over 10% after announcing a $300 million convertible bond issuance. Bilibili dipped over 4%, while Li Auto and XPeng both fell over 3%. Vipshop Holdings and Futu Holdings also dropped over 1%. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow increased by 520.47 points, marking a 1.47% rise, reaching 35,950.89 points. 
• Nasdaq dropped by 32.27 points, a 0.23% decrease, settling at 14,226.22 points. 
• S&P 500 Index rose by 17.22 points, a 0.38% increase, closing at 4,567.80 points. 

Hong Kong Stock Market

The morning session witnessed declines in the three major indices, especially in large-cap tech stocks, with Meituan and Xiaomi dropping over 2%. Tencent, Baidu, Kuaishou, and Alibaba all showed negative trends. 

Real estate stocks faced a collective correction, with China Evergrande dropping nearly 5%.  

Auto stocks continued their downward trajectory, with XPeng, Evergrande Auto, and BYD Company all falling by over 5%. 

Car sales data for November declined, with XPeng and BYD leading the slump in auto stocks.  

Information from the China Passenger Car Market Information Joint Conference revealed a 17% year-on-year increase but a 12% month-on-month decrease in retail sales, totaling 1.389 million units from November 1st to 26th. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped by 0.69%, closing at 16,925.85 points. 
• Hang Seng Tech Index (HSTECH) fell by 1.58%, closing at 3,838.08 points. 
• Hang Seng China Enterprises Index (HSCEI) rose by 1.01%, reaching 5,798.50 points. 

FTSE China A50 Index 

Fundamental Analysis: 

On December 1st, the morning session saw slight downward openings for the three major indices.  

However, the market later showed a weaker trend, with the SZSE Component Index falling nearly 1%.  

Key stocks remained subdued, with the SSE 50 Index continuing its decline, dropping over 1% to mark a new low for the year.  

Conversely, the CSI 50 Index extended its correction, dropping by over 2%. 

Sector-wise, top performers included education, gaming, cultural media, internet services, and real estate services, while declines were seen in electromechanics, energy metals, shipbuilding, battery, and general equipment sectors.  

Themes like short drama interactive games, AIGC concepts, Pinduoduo concepts, ChatGPT concepts, film and TV concepts, and virtual digital human concepts remained active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) dropped by 0.32%, closing at 3,019.84 points. 
• Shenzhen Component Index (SZCOMP) fell by 0.81%, closing at 9,647.95 points. 
• ChiNext Index (CHINEXT) dropped by 0.76%, settling at 1,907.95 points. 
• SSE STAR Market 50 Index (SSE50) decreased by 0.84%, ending at 858.37 points. 

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