U.S. stocks closed lower on Friday, with all three major indices recording losses for the week.  

Data on Consumer Price Index (CPI) and Producer Price Index (PPI) this week showed ongoing inflationary pressures in the U.S., reducing market bets on a rate cut by the Federal Reserve before June.

The Federal Reserve’s monetary policy meeting is set for March 19-20. It is widely expected that the institution will maintain interest rates unchanged for the fifth consecutive time.  

The focus of the meeting will be on the new interest rate “dot plot” released by the Federal Reserve. In December last year, policymakers’ median forecast suggested three rate cuts of 25 basis points each in 2024. 

According to the FedWatch tool by CME Group, federal funds futures pricing indicates a 99% probability that the Federal Reserve will keep rates unchanged at its monetary policy meeting next week. 

U.S. Stocks

Fundamental Analysis: 

Large-cap tech stocks experienced widespread declines, with Amazon and Microsoft falling over 2%, while Meta, Google, and Netflix dropped over 1%. Apple saw a slight decline.  

In the semiconductor sector, Advanced Micro Devices (AMD) fell over 5%, while ARM and STMicroelectronics dropped by over 3%. Analog Devices, ASML, and Broadcom fell by over 2%.  

Nvidia saw a minor decline, while AMD rose over 2% and Micron Technology surged nearly 2%.  

Adobe fell over 13% despite reporting revenue and profit for the first quarter that exceeded expectations, as its second-quarter performance guidance fell short of expectations. 

Popular Chinese tech stocks had mixed movements, with the Nasdaq Golden Dragon China Index falling 0.41%, but still recording a weekly gain of 3.83%.  

Weibo rose over 4%, while XPeng and NIO surged over 2%. JD.com and Bilibili rose over 1%, while Pinduoduo and Alibaba saw slight gains.  

Futu Holdings fell over 3%, and Full Truck Alliance dropped over 2%.  

Tencent Music fell over 1%, while Baidu, NetEase, and Vipshop saw minor declines. 

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq fell 155.36 points, or 0.96%, to close at 15,973.17. 
• Dow Jones Industrial Average (DJIA) dropped 190.89 points, or 0.49%, settling at 38,714.77. 
• S&P 500 index declined 33.39 points, or 0.65%, to end at 5,117.09. 

Hong Kong Stock Market

Fundamental Analysis: 

In the Hong Kong stock market, all three major indices generally rose on Friday.  

In the tech sector, JD.com, Kuaishou, and Tencent surged over 2%, while NetEase fell over 2%.  

Chinese brokerage stocks rallied collectively, with China International Capital Corporation (CICC) rising nearly 5%.  

Infrastructure stocks led the gains, with China Railway Construction Corporation surging nearly 5%.  

Automotive stocks rose across the board, with NIO rising over 4%. However, local property stocks in Hong Kong collectively declined, with Henderson Land Development falling nearly 6%. 

BYD and JD.com both rose over 2%.  

In terms of news, JD.com and BYD reached a strategic cooperation agreement to collaborate comprehensively in areas such as omnichannel marketing and after-sales service systems for passenger vehicles, commercial vehicle cooperation, and customized special scenario solutions, based on their respective resources and business strengths. JD Group surged over 3%. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped 0.57% to close at 16,984.44. 
• Hang Seng Tech Index (HSTECH) fell 1.19% to end at 3,612.70. 
• Hang Seng China Enterprises Index (HSCEI.) declined 0.21% to close at 5,920.18. 

FTSE China A50 Index

Fundamental Analysis: 

In the A-share market, all three major indices opened higher, with the market oscillating upward after a significant decline in the morning session. 

In terms of industry sectors, automotive services, automobile manufacturing, gaming, aerospace, electrical machinery, and plastic products led the gains.  

Conversely, the coal industry, steel industry, precious metals, jewelry, fertilizer industry, and brewing industry witnessed declines. 

Active themes included flying cars, automotive dismantling, SPD concept, Sora concept, and interactive short drama games. 

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) rose 0.49% to close at 3,069.67. 
• Shenzhen Component Index (SZCOMP) surged 0.76% to end at 9,685.42. 
• ChiNext Index (CHINEXT) climbed 1.34% to close at 1,909.33. 
• SSE Sci-Tech Innovation 50 Index rose 0.73% to settle at 820.4. 

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