The U.S. stocks saw modest gains on Monday.
Despite market optimism surrounding the potential conclusion of the Federal Reserve’s rate-hike cycle, rising Treasury yields limited the extent of the stock market’s upward movement.
Investors remained attentive to developments in bond yields and corporate earnings.
On Monday, U.S. Treasury yields rebounded, with the 10-year U.S. Treasury yield rising by 9.1 basis points to 4.649%, reaching an intraday high of 4.668%. The upswing in Treasury yields acted as a constraint on stock market gains.
A few weeks ago, U.S. Treasury yields had reached multi-year highs as investors braced for a sustained period of tight monetary policy by the Federal Reserve.
Historical patterns suggest that such a scenario often has a negative impact on the stock market.
Most major tech stocks recorded gains, with Apple, NVIDIA, and Microsoft rising by over 1%. Meta, Google, Netflix, and Amazon experienced slight increases, while Tesla saw a minor dip.
Berkshire Hathaway reported a net loss of $12.77 billion for the third quarter, primarily due to an 11.7% drop in Apple’s stock price during the same period.
Chinese concept stocks displayed mixed performance, with the Nasdaq China Golden Dragon Index declining by 0.05%.
Ideal Motors and Futu Holdings recorded gains of over 8% and 4%, respectively.
Companies like XPeng Motors, Weibo, Pinduoduo, JD, Tencent Music, and Alibaba experienced marginal increases.
NIO dropped by more than 3%, while companies like Vipshop, iQiyi, Manbang, Baidu, and NetEase declined by over 1%. Bilibili saw a minor decrease.
(S&P 500 Index, 1-day chart)
- Dow Jones Industrial Average increased by 34.54 points, a 0.10% increase, closing at 34,095.86 points.
- Nasdaq Composite Index (Nasdaq) increased by 40.50 points, a 0.30% increase, closing at 13,518.78 points.
- S&P 500 Index increased by 7.64 points, a 0.18% increase, closing at 4,365.98 points.
Hong Kong Stocks
Hong Kong’s major indices opened lower and continued on a downward trajectory.
Among core technology stocks, Bilibili, JD Group, Baidu Group, Alibaba, and Kuaishou all experienced declines of over 2%, while Tencent Holdings and Meituan fell by over 1%.
Automotive stocks observed a general retreat, with NIO dropping by more than 5%.
Real estate and property management stocks also dipped, with Sun Hung Kai Properties Group declining by over 6%.
Sports equipment stocks saw notable declines, with Li-Ning falling by more than 5%.
Semiconductor-related stocks, like Shanghai Huahong Semiconductor, dropped by over 3%.
On the other hand, biotechnology and pharmaceutical stocks saw gains, with Joinn Laboratories surging by over 17%.
(Hang Seng Index, 1-day chart)
- Hang Seng Index (HSI) decreased by 1.50%, closing at 17,696.57 points.
- Hang Seng Tech Index (HSTECH) decreased by 1.41%, closing at 4,040.81 points.
- Hang Seng China Enterprises Index (HSCEI) decreased by 1.59%, closing at 6,084.04 points.
FTSE China A50 Index
In the early morning session, A-shares in China’s three major indices started with minor declines.
Within the first half-hour, the market experienced weak fluctuations, with brokerage stocks remaining active.
The Shanghai Composite Index showed a slight rebound in subsequent trading, while the Shenzhen Component Index and the Growth Enterprise Market (GEM) Index traded sideways at lower levels.
In terms of industry sectors, optical electronics, education, consumer electronics, paper printing, and computer equipment were among the top gainers, while insurance, tourism, precious metals, energy metals, and aviation and airport stocks saw notable declines.
Notable themes included electronic rearview mirrors, computing power, tire pressure monitoring, Chiplet concepts, and automotive thermal management.
(SSE Composite Index, 1-day chart)
- Shanghai Composite Index (SHCOMP) decreased by 0.35%, closing at 3,047.6 points.
- Shenzhen Component Index (SZCOMP) decreased by 0.57%, closing at 10,013.78 points.
- ChiNext Index (CHINEXT) decreased by 0.96%, closing at 2,012.81 points.
- SSE STAR Market 50 Index (SSE50) decreased by 0.67%, closing at 884.22 points.
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.
Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.
Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.