US stocks closed slightly higher on Tuesday, with the Dow Jones rising. WTI crude futures fell for the fifth consecutive trading day.

April’s US factory orders exceeded expectations, and job openings hit their lowest level in over three years, leading to speculation that the Federal Reserve may accelerate its rate cuts.

This week, the market’s primary focus is on the May nonfarm payroll report due on Friday.

Wall Street is closely watching the upcoming May nonfarm payroll report on Friday. Investors are hoping for a labor market that is weak enough to prompt the central bank to cut rates, but not so weak as to raise fears of a potential economic recession.

Megan Horneman, Chief Investment Officer at Verdence Capital Advisors, commented, “The market is currently searching for a catalyst. One day, bad news will actually be bad news.”

US Stocks

Fundamental Analysis: 

Most major tech stocks rose, with Nvidia gaining over 1% and hitting a new all-time high, pushing its market cap to $2.86 trillion.

Amazon, Google, Microsoft, and Apple saw modest gains, while Tesla, Netflix, and Meta experienced slight declines.

The semiconductor sector mostly fell, with AMD, ASE Technology, and ON Semiconductor dropping over 2%, and ASML down more than 1%.

Precious metals, cannabis, and energy stocks saw significant declines, with Ivanhoe Electric falling over 8%, Hecla Mining dropping more than 7%, and Plug Power, Century Aluminum, and Pan American Silver all losing over 6%. Harmony Gold, US Gold, and Alcoa fell more than 4%.

Most popular Chinese stocks declined, with the Nasdaq Golden Dragon China Index down 0.99%. TAL Education dropped more than 4%, while New Oriental, Trip.com, and KE Holdings fell over 3%.

iQiyi and Nio declined over 2%, Li Auto fell more than 1%, and Baidu, Pinduoduo, Vipshop, XPeng, and Futu Holdings experienced slight declines.

Bilibili rose over 1%, with Zeekr, Alibaba, JD.com, NetEase, and Weibo showing modest gains.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones: Up 140.26 points, or 0.36%, at 38,711.29
• Nasdaq: Up 28.38 points, or 0.17%, at 16,857.05
• S&P 500: Up 7.94 points, or 0.15%, at 5,291.34

Hong Kong Stock Market

 Fundamental Analysis: 

Hong Kong’s major indices rose but then retreated. Tech stocks mostly gained, with JD.com and NetEase rising nearly 3% and Tencent up almost 2%, while Lenovo fell over 2%.

The semiconductor sector saw strong gains, with Contel up nearly 94% amid expected price hikes. Apple-related stocks rose collectively, with Sunny Optical up nearly 4%. Copper and gold stocks weakened, with China Nonferrous Mining falling nearly 5%.

Apple-related stocks rose collectively, with Sunny Optical up nearly 4%. Apple plans to unveil a series of significant operating system updates at the upcoming developers conference, including iOS 18, iPadOS 18, tvOS 18, macOS 15, and watchOS 11.

On June 4, 2024, Apple sent out invitations for WWDC24 through its official WeChat account, announcing the event to be held at 1 AM Beijing time on June 11, with the tagline “Big News Loading.”

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index: Up 0.33%, at 18,505.56
• Hang Seng Tech Index: Up 0.78%, at 3,825.79
• Hang Seng China Enterprises Index: Up 0.27%, at 6,572.21

FTSE China A50 Index

Fundamental Analysis: 

Mainland China’s A-shares were mixed in early trading. The defense, automotive, and cloud sectors saw significant gains.

The defense sector was active again, with Zhongbing Hongjian and Beifang Navigation hitting the daily limit, and Zhonghaida up over 17%. The semiconductor sector rose, with the connected car concept continuing to climb. Automotive services, biopharmaceuticals, and medical services sectors were among the top gainers. The real estate sector continued to decline, with gold and nonferrous metal stocks mostly down.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index: Down 0.36%, at 3,079.92
• Shenzhen Component Index: Down 0.07%, at 9,462.68
• ChiNext Index: Up 0.12%, at 1,845.86
• STAR Market 50 Index: Down 0.37%, at 756.43

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