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U.S. Stocks On Wall Street Plunged, Hong Kong Stocks Opened Sharply Lower

U.S. Stocks 

Fundamental Analysis: 

U.S. stocks on Wall Street plunged Wednesday, 19th May 2022, with Target plunging about 25%, as the retailer became the latest victim of a surge in prices that underscored great concern about the U.S. economy.

Both the S&P 500 and the Dow Jones Industrial Average posted their biggest one-day losses since June 2020. Meanwhile, rate sensitive giant growth stocks exacerbated the recent decline and dragged the S&P 500 and Nasdaq lower.

Amazon, Nvidia, and Tesla plunged nearly 7%, while Apple retreated 5.6%. All 11 sectors of the S&P 500 were wiped out, led by non-essential consumer goods stocks and major consumer goods stocks, both down more than 6%.

Rising inflation, the conflict in Ukraine, prolonged supply chain disruptions, Covid-19 lockdowns in Asia, and tightening monetary policy by major central banks have all weighed on financial markets recently, raising concerns about a global economic slowdown.

By the close of trading, the S&P 500 index retreated 4.04% to close at 3,923.68 points. The Nasdaq collapsed 4.73% to 11,418.15 points, while the Dow Jones Industrial Average plunged 3.57% to 31,490.07 points.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow is concerned about the 32083-line today. If the Dow runs stably below the 32083-line, it will pay attention to the support strength of the 31291 and 31000 positions. If the Dow rebounds above the 32083-line, it will pay attention to the suppression strength of the 32455 and 32781 positions.

Hong Kong Stocks 

Fundamental Analysis: 

U.S. stocks tumbled overnight as stagflation concerns further fueled a spike in the panic index.

Hong Kong stocks opened sharply lower, with the Hang Seng Index (HSI) down 2.41%, the Hang Seng China Enterprises Index (HSCEI) down 2.8%, and the Hang Seng TECH Index (HSTECH) down 4.3%.

On the market, large technology stocks fell collectively, and Q1 results were less than expected. Tencent Holdings Limited (0700.HK) fell 6.46%, Alibaba Group Holding Limited (9988.HK) fell 5.56%, while, Inc. (9618.HK), Xiaomi Corporation (1810.HK), and Meituan (3690.HK) were down more than 4%.

Consumer stocks led the decline, while restaurant stocks, and beer stocks generally fell. Dairy stocks, automotive stocks, gambling stocks, domestic housing stocks and property management stocks, shipping stocks, etc. opened lower.

On the other hand, home appliance stocks, Hong Kong local stocks, pharmaceutical stocks partially rose, Ascentage Pharma Group International (6855.HK) jumped nearly 15%, and JS Global Lifestyle Company Limited (1691.HK) opened 1.59% higher against the trend.

Ascentage Pharma Group International (6855.HK) rose nearly 15% as preclinical data showed that Orebatinib has potential to treat the Covid-19.

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 pay attention to the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support of the 18606-line.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13157-line today. If the A50 runs steadily below the 13157-line, it will pay attention to the support strength of the two positions of 12733 and 12328. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13496 and 13983.

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