U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed sharply lower on Monday as investors were nervous about the Federal Reserve seminar in Jackson Hole, Wyoming, later this week, where the Fed is expected to emphasize its strong commitment to curbing inflation. 

All 11 sectors of the S&P 500 fell, led by non-must-have consumer goods stocks, down 2.84%, followed by information technology stocks, down 2.78%.

Nvidia fell 4.6%, Amazon fell 3.6%, Microsoft and Apple both fell more than 2%, and the yield on the indicator 10-year U.S. bond touched its highest since 21st July 2022.

The CBOE market volatility index, known as a Wall Street fear indicator, rose to 23.9, the highest in more than two weeks.

Markets are split on whether to raise rates by 50 basis points or 75 basis points, after several policymakers downplayed recent dovish expectations and emphasized the Fed’s commitment to fighting inflation.

The market will also be watching the details of the Fed’s plan to reduce its nearly $9 trillion balance sheet, a process that began in June.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 32975-line today. If the Dow runs steadily above the 32975-line, it will pay attention to the suppression strength of the 33233 and 33390 positions. If the Dow runs steadily below the 32975-line, it will pay attention to the support strength of the 32781 and 32455 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Fears of interest rate hikes are rising again, with U.S. stocks hitting their biggest drop in two months overnight.

Hong Kong stocks opened slightly lower, the Hang Seng Index (HSI) fell 0.06%, the Hang Seng China Enterprises Index (HSCEI) fell 0.08%, the Hang Seng TECH Index (HSTECH) fell 0.02%.

On the market, Chinese stocks counter the trend overnight, most Chinese stocks back in Hong Kong rose, Yum China Holdings, Inc. (9987.HK), Weibo Corporation (9898.HK) rose 2%, Li Auto Inc. (2015.HK), NIO Inc. (9866.HK), New Oriental Education & Technology Group Inc. (9901.HK) and Alibaba Group Holding Limited (9988.HK) are up.

Sporting goods stocks partly rose, domestic housing stocks and property management stocks continued to be active, Agile Group Holdings Limited (3383.HK) rose 4%.

On the other hand, most of the insurance stocks, auto stocks, shipping stocks and home appliance stocks fell, and power stocks continued to pull back.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then focus on the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support strength of the 18606 and 17535 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13887-line today. If the A50 runs stably below the 13887-line, pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, focus on the two positions of 14371 and 14695.

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