U.S. stocks experienced a decline on Monday, taking a temporary pause after recent consecutive gains.  

The rise in U.S. Treasury yields has put pressure on tech stocks.  

This week, the market’s focus is on Friday’s non-farm payroll data to further assess whether the Federal Reserve’s interest rate hike cycle has ended. 

Despite Federal Reserve Chairman Jerome Powell’s attempts to temper rate-cut expectations, investors remain convinced that the Fed has concluded its rate hikes.  

Powell stated that it is “too early” to expect policy easing and that U.S. monetary policy is evidently slowing the economy, with overnight rates entering a “restrictive range.” 

According to the FedWatch tool by the Chicago Mercantile Exchange (CME), the market anticipates a 60% probability of a rate cut before the March meeting, up from 21% just a week ago. 

U.S. Stocks

Fundamental Analysis: 

Most large tech stocks declined, chip stocks slid with Intel and Arm dropping over 3%, while NVIDIA and AMD fell by over 2%.  

Media reported that within the last month, Meta’s CEO Mark Zuckerberg, one of the “Magnificent Seven” tech stocks, has been selling stocks daily, cashing out over $180 million.  

NVIDIA executives also disclosed plans to sell 370,000 shares within a month. These two stocks ranked first and second in gains among U.S. blue-chip stocks this year. 

Popular Chinese concept stocks mostly declined, with the Nasdaq Golden Dragon China Index falling by 2.09%.  

NetEase and Manbang fell by over 4%, Weibo and Futu Holdings over 3%, while Baidu, Vipshop, JD, Pinduoduo, Tencent Music, Li Auto, and Alibaba dropped by over 1%.  

NIO surged over 2%, while XPeng, iQIYI, and Bilibili saw slight increases. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones fell by 41.06 points, a decline of 0.11%, closing at 36,204.44 points. 
• Nasdaq dropped by 119.54 points, a decline of 0.84%, closing at 14,185.49 points. 
• S&P 500 Index declined by 24.85 points, a decline of 0.54%, closing at 4,569.78 points. 

Hong Kong Stocks

The three major indices opened low and continued to decline.  

Core tech stocks saw widespread declines, led by a 4% drop in NetEase and over 3% declines in Baidu Group, Kuaishou, Meituan, Xiaomi, Tencent, and JD.  

Outsourcing pharmaceutical concept stocks faced significant declines, with WuXi AppTec plunging over 11%.  

Restaurant stocks dropped, with Parkson China falling by nearly 5%.  

Electronic components and gold stocks collectively faced setbacks, with Zhaojin Mining falling by over 3%. 

Outsourcing pharmaceutical concept stocks faced significant declines, with WuXi AppTec plunging over 11%.  

The business update presentation released by WuXi AppTec on the 4th outlined issues with income delays in short-term CMO projects and a rapid revenue decline from COVID-19-related operations.  

This situation may cause the company’s overall revenue for 2023 to fall short of earlier expectations, consequently slowing down revenue growth and potentially resulting in decreased company profits. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell by 1.76% to close at 16,353.87 points. 
• Hang Seng Tech Index (HSTECH) dropped by 2.02%, closing at 3,683.68 points. 
• Hang Seng China Enterprises Index (HSCEI.) fell by 1.44%, closing at 5,621.21 points. 

FTSE China A50 Index

Fundamental Analysis: 

The A-share indices opened low, with the Shanghai Composite gradually weakening, falling below the 3000-point mark, then fluctuating around this level.  

The Shenzhen Component and the Growth Enterprise Market continued to decline, with the latter dropping by over 1%.  

On the other hand, the SSE 50 Index received renewed investor interest, surging by 5.89%. 

In terms of sectors, food and beverage, automobile services, energy metals, rubber products, and professional services were among the top gainers. 

Meanwhile, precious metals, gaming, semiconductors, internet services, and optical electronics faced significant declines.  

Themes such as dairy industry, prefabricated vegetables, chicken meat concepts, aquaculture, weight loss drugs, agricultural planting, condiment concepts, grain concepts, and beer concepts remained active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.69% to close at 3,002.09 points. 
• Shenzhen Component Index (SZCOMP) dropped by 0.98%, closing at 9,570.02 points. 
• ChiNext Index (CHINEXT) declined by 0.98%, closing at 1,890.19 points. 
• SSE STAR Market 50 Index (SSE50) fell by 1.11%, closing at 852.39 points. 

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