The major U.S. stock indices posted gains of over 1%, with the S&P 500 breaking free from the pullback territory.  

WTI crude oil futures fell by 3.8%.  

This week, the market’s focus is on Apple’s earnings report, the outcome of the Federal Reserve meeting, and the U.S. non-farm payroll data for October. 

The surge in bond yields has been the primary cause of the U.S. stock market’s pullback.  

Investors are eager for the Federal Reserve to signal an end to the rate-hiking cycle, while traders anticipate the Fed to hold off on raising interest rates until at least 2023. 

U.S. Stocks 

Fundamental Analysis: 

Tesla battery supplier, Panasonic, reported its earnings on Monday, indicating a slowdown in demand for high-end electric vehicles in the North American market.  

As a result, the company lowered its performance guidance for its energy division, which produces batteries for automakers like Tesla, projecting a 15% decline in operating profit for the fiscal year.  

Apple is set to announce its earnings report. Due to sluggish sales of new models, Apple has notably increased its promotional efforts during the Singles’ Day shopping festival. According to reports, discounts of up to 500 RMB are available for iPhone 15 Pro and iPhone 15 Pro Max, while iPhone 15 and iPhone 15 Plus purchases come with a 700 RMB discount. 

Popular Chinese concept stocks mostly saw gains on Monday, with the Nasdaq Golden Dragon Index rising by 0.8%.  

Bilibili gained over 4%, BeiGene surged over 9%, and several other companies, including iKang, Kingsoft Cloud, and Meicai, posted gains of over 8%.  

Other companies like Mogu and Best Inc., as well as Century Huatong, Wanguo Data, Tuniu, Dingdong Maicai, and New Energy Exchange all rose by over 5%. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average gained 511.37 points, up 1.58% to close at 32,928.96. 
• Nasdaq Composite Index (Nasdaq) rose by 146.47 points, up 1.16% to close at 12,789.48. 
• S&P 500 Index increased by 49.45 points, up 1.20% to close at 4,166.82. 

Hong Kong Stocks 

In the Hong Kong stock market today, all three major indices opened lower, with technology stocks facing a widespread decline.  

Baidu Group dropped nearly 4%, while Meituan fell by almost 3%, and Tencent Holdings and Alibaba both saw losses of around 2%.  

Automobile stocks also saw a significant downturn, with XPeng Motors leading the way with a drop of over 10%.  

In the lithium industry sector, leading company Ganfeng Lithium fell by nearly 13%.  

Semiconductor stocks faced significant declines, with SMIC (Semiconductor Manufacturing International Corporation) dropping over 4% and Shanghai Fudan Microelectronics falling by almost 4%. 

Moreover, pharmaceutical outsourcing companies saw a sharp decline, with WuXi AppTec falling by more than 12% and CStone Pharmaceuticals dropping by over 8%. 

In the semiconductor sector, SMIC dropped over 4%, while Shanghai Fudan Microelectronics fell by nearly 4%.  

In an official announcement, Shanghai Fudan reported a 6% year-on-year decrease in operating income for the third quarter of 2023, with a net profit attributable to the parent company declining by 38.88%.  

In the first three quarters of the year, operating income increased by 1.25% year-on-year, while net profit attributable to the parent company decreased by 24.33%. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped by 1.77%, closing at 17,097.51 points. 
• Hang Seng Tech Index (HSTECH) declined by 2.16%, closing at 3,771.06 points. 
• Hang Seng China Enterprises Index (HSCEI) fell by 1.83%, closing at 5,850.99 points. 

FTSE China A50 Index 

Fundamental Analysis: 

A-share indices started slightly lower, with the Shenzhen Component Index falling by over 1% at one point, while the SSE 50 Index moved relatively flat.  

The Shanghai Composite Index experienced a comparatively smaller decline. 

In terms of industry sectors, bio-products, pharmaceuticals, gaming, insurance, and beauty care showed notable gains, while the automobile sector, photovoltaic equipment, energy metals, power equipment, and electrical machinery were among the sectors with significant losses.  

Themes such as weight loss drugs, innovative drugs, CRO (Contract Research Organization), liquor, and condiments were actively discussed. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 0.38%, closing at 3,009.97 points. 
• Shenzhen Component Index (SZCOMP) declined by 0.98%, closing at 9,831.08 points. 
• ChiNext Index (CHINEXT) dropped by 0.79%, closing at 1,962.16 points. 
• SSE STAR Market 50 Index (SSE50) decreased by 0.8%, closing at 871.11 points. 

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