U.S. stocks rose on Friday, with all three major indexes posting their fifth consecutive week of gains.  

Both the Dow Jones and the S&P 500 reached their highest closing levels so far in 2023.  

Fed Chair Powell attempted to dampen market expectations of rate cuts.  

However, the market believes that the Fed’s rate hikes have already concluded, considering his statement about maintaining a high-interest rate policy for a “longer period” as mere posturing. 

Powell stated a commitment to maintaining a tightening policy until inflation reaches a 2% trajectory.  

He emphasized the necessity for sustained recent core inflation progress to achieve inflation targets, indicating that it’s too early to speculate on policy easing. 

Moreover, Powell even mentioned that if the timing is right, the Fed is prepared to further tighten monetary policy.  

He asserted that the Federal Open Market Committee would proceed cautiously, as the risks of under-tightening and over-tightening have become more balanced.  

He claimed that the current monetary policy’s restrictiveness is sufficient and that it’s premature to ease it. 

U.S. Stock Market

Fundamental Analysis: 

Large tech stocks mostly rose, semiconductor stocks surged, with AMD up by 4%, ARM nearly 4%, TSMC and Texas Instruments up over 1%.  

Apple and Amazon saw slight gains, while Netflix and Microsoft fell by over 1%, and NVIDIA, Google, and Tesla experienced slight declines.  

Blockchain, shipping, department stores, metaverse, clean energy, precious metals, and aluminum stocks generally rose. Marathon Digital surged over 14%, and Bit Digital rose by over 10%. 

Popular Chinese concept stocks mostly declined, with the Nasdaq Golden Dragon China Index falling by 1.00%.  

XPeng fell by over 5%, while Li Auto and NIO dropped by over 1.60%. The new players in the car industry released their performance for the first 11 months: XPeng delivered 121,500 vehicles this year (exceeding the 2022 full-year deliveries) but fell short of the 200,000 annual target for this year. 

Li Auto delivered 325,700 vehicles, surpassing the annual sales target of 300,000 ahead of schedule. The company officially aims to achieve 50,000 monthly deliveries in December. NIO delivered 142,000 vehicles, with an annual target of 250,000. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow rose by 294.61 points, an increase of 0.82%, closing at 36,245.50 points. 
• Nasdaq increased by 78.81 points, a rise of 0.55%, closing at 14,305.03 points. 
• S&P 500 Index rose by 26.83 points, a rise of 0.59%, closing at 4,594.63 points. 

Hong Kong Stock Market

The three main indices opened higher but fell later in the day.  

Core tech stocks mostly declined: NetEase dropped by over 4%, Kuaishou over 3%, Baidu Group nearly 2%, while Meituan, JD, and Alibaba fell by over 1%.  

Most automobile stocks declined, with Li Auto falling by over 3%. Real estate stocks generally dropped, but China Evergrande surged by over 13%. 

Gold-related stocks surged, with China Gold International up by over 6%.  

Recent U.S. data indicates economic and inflation pressures easing, leading to expectations of Fed rate cuts starting next year.  

These factors contributed to the continuous decline of the U.S. dollar and a robust increase in gold prices, rising nearly $60 intraday, setting a new historical record. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell by 0.6% to close at 16,729.01 points. 
• Hang Seng Tech Index (HSTECH) dropped by 1.34%, closing at 3,779.60 points. 
• Hang Seng China Enterprises Index (HSCEI) fell by 0.61%, closing at 5,726.31 points. 

FTSE China A50 Index 

Fundamental Analysis: 

On December 4, the A-share indices opened mixed, with the Shanghai Composite initially fluctuating, the Shenzhen Component and the Growth Enterprise Market rebounding briefly after an initial dip, then stabilizing.  

The SSE 50 Index surged over 2% but soon retraced its gains. 

In terms of sectors, precious metals, cultural media, automobile services, shipbuilding, and gaming were among the top gainers. 

Meanwhile, medical services, insurance, brewing, food and beverages, and photovoltaic equipment faced significant declines.  

Themes such as short dramas, AIGC concepts, data elements, gold concepts, ChatGPT concepts, and film and television concepts were active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.04% to close at 3,030.56 points. 
• Shenzhen Component Index (SZCOMP) dropped by 0.15%, closing at 9,705.55 points. 
• ChiNext Index (CHINEXT) fell by 0.25%, closing at 1,921.51 points. 
• SSE STAR Market 50 Index (SSE50) rose by 0.12%, closing at 868.61 points. 

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