U.S. stocks closed slightly higher on Thursday, with the Nasdaq hitting a record high at the close. All three major indices posted gains for the fourth consecutive month.  

The U.S. core PCE index for January saw its largest increase in a year, supporting the Federal Reserve’s cautious interest rate policy. The market continues to focus on Fed officials’ remarks to further gauge the timing of rate cuts. 

The upward trend in US stocks at the beginning of 2024 is largely attributed to the artificial intelligence (AI) boom, but recent consecutive declines in the stock market have raised doubts among investors about the sustainability of AI-driven rebounds. 

Craig Johnson, Chief Market Technician at Piper Sandler, believes that U.S. stocks are poised for a 10% correction soon. This is due to some technical signals in the market indicating that stocks are not yet ready for further upward movement. 

U.S. Stocks

Fundamental Analysis: 

Popular Chinese concept stocks saw mixed movements, with the Nasdaq Golden Dragon China Index falling by 0.22%, accumulating a 12.34% increase for February.  

Xpeng Motors surged over 8%, NIO rose over 5%, Futu Holdings and Tencent Music rose over 2%, while Li Auto rose over 1%.  

Manbang, iQiyi, and Bilibili saw slight increases. NetEase fell by over 3%, Baidu and Vipshop fell by over 1%, while JD.com, Alibaba, Pinduoduo, and Weibo saw marginal declines. 

Most large-cap tech stocks rose, with AMD surging over 9%, reaching a historic high, and its market value surpassing $300 billion for the first time.  

Arm surged over 5%, while SMIC and Applied Materials rose over 3%. Intel and Applied Materials rose over 2%, while Nvidia, Amazon, Google, Meta, Microsoft, and Netflix rose over 1%. Apple and Tesla saw slight declines. 

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq rose by 144.18 points, or 0.90%, to close at 16,091.92 points. 
• Dow Jones Industrial Average rose by 47.37 points, or 0.12%, to close at 38,996.39 points. 
• S&P 500 index rose by 26.5 points, or 0.52%, to close at 5,096.27 points. 

Hong Kong Stock Market

Fundamental Analysis: 

The three major indices in the Hong Kong stock market opened lower but rallied later.  

Technology and internet-related stocks generally rose, with Meituan surging over 8%, while JD.com and Baidu rose over 1%. NetEase fell by over 1% after its earnings report.  

Automotive stocks collectively rose, with Xpeng Motors surging over 8%. Stocks related to Apple performed well, with GoerTek Electronics and BYD Electronics rising over 4%.  

Semiconductor-related stocks remained active, with SMIC surging over 2%. 

Apple concept stocks lead the gains. High Wealth Electronics, BYD Electronics surge over 4%.  

In terms of news, Tianfeng International analyst Guo Mingchi stated that he still maintains the prediction that Apple may release Vision Pro in more countries before this year’s WWDC. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) rose by 0.75%, closing at 16,636.06 points. 
• Hang Seng Tech Index (HSTECH) rose by 1.57%, closing at 3,485.20 points. 
• Hang Seng China Enterprises Index (HSCEI.) rose by 1.15%, closing at 5,743.06 points. 

FTSE China A50 Index

Fundamental Analysis: 

The A-share market saw fluctuations with gains, as the Shanghai Composite Index fluctuated upwards and turned positive after the opening.  

The Shenzhen Component Index and the ChiNext Index both showed a sideways consolidation trend. 

In terms of industry sectors, consumer electronics, power equipment, computer equipment, power grid equipment, and optical optoelectronics led the gains.  

Diversified finance, aviation airports, education, agriculture, animal husbandry, fisheries, and shipping ports were among the top decliners.  

Themes such as high-voltage fast charging, liquid cooling, CPO concepts, optical communication modules, superconducting concepts, mixed reality, and third-generation semiconductors remained active. 

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) rose by 0.09%, closing at 3,017.81 points. 
• Shenzhen Component Index (SZCOMP) rose by 0.45%, closing at 9,372.64 points. 
• ChiNext Index (CHINEXT) rose by 0.12%, closing at 1,809.17 points. 
• SSE STAR Market 50 Index (SSE50) rose by 0.10%, closing at 808.50 points. 

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