U.S. stocks closed mixed on Monday, with the Nasdaq slightly higher and the Dow and S&P 500 slightly lower.  

This week, the market focuses on the latest PPI and CPI inflation data to further assess the Fed’s monetary policy outlook.  

Morgan Stanley predicts a cooling U.S. economy and expects three rate cuts from the Fed this year. 

Morgan Stanley’s research division stated, “Inflation data will weaken in the coming months, and deflation will accelerate in the second half of 2024. This should provide the Fed with the confidence that inflation is moving towards the 2% target.” 

Ben Snider, a senior strategist at Goldman Sachs, noted that the S&P 500 index is above Goldman’s year-end target of 5,200 points, yet the fundamental backdrop remains “very strong.”  

He remains optimistic about the stock market’s future due to strong U.S. corporate earnings and confidence in declining inflation. 

U.S. Stocks

Fundamental Analysis: 

Major tech stocks showed mixed results. Tesla rose over 2%, Apple nearly 2%, while Meta fell over 1%.  

Popular WSB concept stocks soared, with AMC Theatres up nearly 80% and GameStop over 74%, driven by the return of a prominent retail investor after three years.  

Metals processing, semiconductor equipment, and precious metals sectors declined, with Gold Mining down over 5%, ASML and Cohu Semiconductor over 1%, and Intertek over 2%. 

Popular Chinese stocks generally rose, with the Nasdaq Golden Dragon China Index up 3.74%.  

Bilibili surged over 12%, Tencent Music nearly 11%, Nio over 6%, with Vipshop, Alibaba, Futu Holdings, and iQiyi up over 5%.  

JD.com and XPeng Motors rose over 4%, Pinduoduo over 3%, with Baidu and Full Truck Alliance over 2%, Weibo and Li Auto over 1%, and NetEase slightly up. 

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq rose by 47.37 points, a 0.29% increase, to 16,388.24 points. 
• Dow fell by 81.33 points, a 0.21% decrease, to 39,431.51 points. 
• S&P 500 dropped by 1.26 points, a 0.02% decrease, to 5,221.42 points. 

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s major indices showed mixed trends.  

Tech stocks overall rose, with Bilibili up nearly 6%, Xiaomi over 3%, Alibaba nearly 2%, with Baidu and NetEase over 1%.  

The film and entertainment sector led gains, with Tencent Music up 9% following strong Q1 results.  

Internet healthcare stocks surged, with Dingdong Health up 62%, and CXO concept stocks like WuXi AppTec up over 6%. 

The film and entertainment sector saw significant gains, with Tencent Music up over 9%.  

In Q1 2024, Tencent Music’s total revenue was 6.77 billion yuan, a 3.4% year-on-year decrease, while online music subscription revenue grew 39.2% to 3.62 billion yuan. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) decreased by 0.13%, closing at 19,089.83 points. 
• Hang Seng Tech Index (HSTECH) fell by 0.98%, to 4,057.88 points. 
• Hang Seng China Enterprises Index (HSCEI.) slightly dropped by 0.06%, to 6,757.82 points. 

FTSE China A50 Index

The A-share market showed mixed trends, with gaming and auto sectors strong.  

The gaming sector was robust, with Talking Tom hitting the daily limit and others like Caesar Culture and Shengtong Shares also up.  

The automotive sector strengthened, with King Long Motor, Zhongtong Bus, and Ankai Bus hitting the upper limit.  

The sports industry concept also rose, with Three Trees and Hongbo Shares peaking mid-session. 

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) declined by 0.12%, to 3,144.15 points. 
• Shenzhen Component Index (SZCOMP) slightly fell by 0.01%, to 9,672.30 points. 
• ChiNext Index (CHINEXT) ) decreased by 0.18%, to 1,857.02 points. 
• SSE Sci-Tech Innovation 50 Index dropped by 0.18%, to 762.34 points. 

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