On Tuesday, the U.S. stocks closed with mixed results, as the Nasdaq saw its largest single-day decline since October 2023.  

Pressures on tech stocks arose from the rebound in U.S. bond yields and Barclays’ downgrade of Apple stock. 

The market remains attentive to the Federal Reserve’s interest rate path in 2024. 

Back in October 2023, the 10-year U.S. Treasury bond yield had momentarily surpassed 5%, causing investor panic.  

However, this yield peaked and steadily declined, falling below 3.9% by the end of 2023.  

On Tuesday, the 10-year U.S. Treasury bond yield rebounded, nearing 4% once again. 

Adam Crisafulli, founder of Vital Knowledge, remarked in a report: “The greatest real risk facing the stock market is not the Federal Reserve or the European Central Bank failing to cut rates as aggressively as expected but rather earnings declining more than anticipated in an environment of slowing economic growth and fading pricing power.” 

U.S. Stocks

Fundamental Analysis: 

Large tech stocks declined. Apple and Netflix dropped over 3%, Meta over 2%, Microsoft, Amazon, Google over 1%, while Tesla saw a slight dip.  

Chip stocks experienced significant declines: ARM dropped over 8%, marking its largest single-day drop since IPO; AMD, ASML dropped over 5%, Intel over 4%, Qualcomm over 3%, NVIDIA over 2%.  

Moderna surged over 13%, hitting a new high since September last year; JPMorgan Chase rose over 1%, reaching a historic high. 

Most popular Chinese stocks declined. The Nasdaq Golden Dragon China Index fell by 3.50%.  

Ideanomics, NIO dropped over 7%, JD, Full Truck Alliance, Futu Holdings dropped over 5%, Bilibili dropped over 4%, XPeng, Weibo, Alibaba, Tencent Music, Baidu dropped over 3%, Vipshop dropped over 2%, iQIYI dropped over 1%, while NetEase, Pinduoduo saw marginal declines. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones rose by 25.50 points, a 0.07% increase, closing at 37,715.04 points. 
• Nasdaq fell by 245.41 points, a 1.63% decline, closing at 14,765.94 points. 
• S&P 500 Index dropped by 27.00 points, a 0.57% decrease, closing at 4,742.83 points. 

Hong Kong Stocks

Fundamental Analysis: 

All three major indices in Hong Kong experienced declines.  

In the tech sector, JD dropped over 4%, Xiaomi over 3%, Baidu nearly 3%, Alibaba, Meituan over 2%, while gaming stocks NetEase, Tencent rose by over 1%.  

Automotive stocks plummeted, with Leapmotor dropping by almost 7% and NIO by 5%.  

Apple-related stocks faced significant declines, with High Wealth Electronics dropping over 6%. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell by 1.22%, closing at 16,583.55 points. 
• Hang Seng Tech Index (HSTECH) dropped by 2.37%, closing at 3,626.66 points. 
• Hang Seng China Enterprises Index (HSCEI.) declined by 1.16%, closing at 5,606.97 points. 

FTSE China A50 Index

Fundamental Analysis: 

A shares opened lower, with the Shanghai Composite rebounding initially but later trading sideways.  

The Shenzhen Component and the ChiNext Index continued to decline, with ChiNext falling over 1%. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) dropped by 0.17%, closing at 2,957.34 points. 
• Shenzhen Component Index (SZCOMP) fell by 1%, closing at 9,307.37 points. 
• ChiNext Index (CHINEXT) declined by 1.34%, closing at 1,831.04 points. 
• SSE STAR Market 50 Index (SSE50) dropped by 1.28%, closing at 829.01 points. 

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