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U.S. Stocks Slide As NVIDIA, AMD Plunge Over 2%

U.S. Stocks Close Mix, Pinduoduo Overtakes Alibaba In Market Value

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. 

Forward-looking Statements    
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.

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