On Monday, U.S. stocks ended lower, with technology stocks suffering the largest losses.  

Treasury yields rose, with the 10-year Treasury yield briefly surpassing 4.66%, a new high for the year, and the 2-year Treasury yield nearing 5%.  

Markets are closely monitoring escalating geopolitical tensions as Israel decides to retaliate against Iran’s attacks. 

The region garnered intense scrutiny over the weekend when Iran launched missiles and over 100 armed drones at Israeli targets on Saturday evening, bringing the Middle East closer to a full-scale regional war.

This marked the first direct attack by Iran from its territory on Israel. Iran has warned that military operations would be considered over if Israel does not retaliate. 

During a visit to Nevatim Air Base on April 15, Israel Defense Forces Chief of Staff, Herzl Halevi, stated that Iran’s missile and drone attacks on Israel “will be met with a response.” 

U.S. Stocks

Fundamental Analysis: 

Large tech stocks broadly fell, with Tesla down over 5% following reports of plans to cut more than 10% of its global workforce.  

Apple, Nvidia, Meta, and Netflix each fell over 2%, while Microsoft and Google were down nearly 2%, and Amazon fell over 1%.  

The software applications, automotive manufacturing, and solar panel sectors led the declines, with Sunrun down over 8%, Rivian down 8%, and Ford Motor and First Solar falling more than 3%.  

Conversely, the metals and mining, sports, and food sectors performed well, with Century Aluminum up over 7%, Alcoa and Steel Dynamics each up over 3%, and Herbalife, Canada Goose, General Mills, and Nike each up over 1%. 

Most popular Chinese concept stocks fell, with the Nasdaq Golden Dragon China Index down 0.48%.  

Nio fell over 5%, Xpeng Motors over 3%, and Li Auto over 2%. Bilibili, Baidu, Futu Holdings, Tencent Music, and Pinduoduo each fell over 1%, while Alibaba, iQIYI, and Vipshop saw slight declines. Weibo, Manbang, JD.com, and NetEase slightly rose. 

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq fell 290.08 points, a decline of 1.79%, to 15,885.02. 
• Dow Jones fell 248.13 points, a decline of 0.65%, to 37,735.11. 
• S&P 500 Index fell 61.59 points, a decline of 1.20%, to 5,061.82. 

Hong Kong Stock Market

Fundamental Analysis: 

Today, Hong Kong’s market continued its weak adjustment, with tech stocks broadly falling.  

Xiaomi fell nearly 3%, and JD.com, Alibaba, Meituan, Baidu, and NetEase all fell over 2%. Apple-related stocks continued to fall, with FIH Mobile Group down over 11%.  

Tesla’s global layoffs drove automotive stocks down, with new energy vehicle makers like Nio plunging nearly 10%.  

Sectors like casino gaming, internet healthcare, and sports goods also saw significant declines. 

Oil stocks bucked the trend with a rise, with PetroChina up over 2%.  

Ed Yardeni, president of Yardeni Research, commented that worsening Middle East conflicts could drive up oil prices, with Brent crude potentially reaching $100 per barrel.  

Dongwu Futures also noted that strong fundamentals in crude oil and rising U.S. inflation expectations suggest a generally strong oil price trend. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell 1.93%, to 16,279.56. 
• Hang Seng Tech Index (HSTECH) fell 2.70%, to 3,349.42. 
• Hang Seng China Enterprises Index (HSCEI.) fell 1.82%, to 5,749.58. 

FTSE China A50 Index

Fundamental Analysis: 

Influence from external market downturns led China’s three major stock indices to open low.  

Early trading saw broad declines across sectors such as tourism, media, education, machinery, environmental protection, retail, and electronics, with ST stocks and sub-new stocks taking a hit.  

High-performance stocks surged initially but later fell back, still attracting capital against the trend. 

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell 1.42%, to 3,013.84. 
• Shenzhen Component Index (SZCOMP) fell 1.56%, to 9,223.29. 
• ChiNext Index (CHINEXT) fell 1.16%, to 1,774.64. 
• SSE Sci-Tech Innovation 50 Index fell 1.62%, to 738.76. 

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