US stocks closed higher on Friday, with the Nasdaq reaching a record high. Both the S&P 500 and the Nasdaq marked their fifth consecutive week of gains.

US durable goods orders for April unexpectedly rose, and the market continued to assess the Federal Reserve’s monetary policy stance for the year. Fed Governor Christopher Waller noted that the US is on an unsustainable fiscal path.

AI chip leader Nvidia rose about 2.6%, hitting a new all-time high and surpassing a market cap of $2.6 trillion. The company’s first-quarter earnings exceeded expectations, and it announced a 1-for-10 stock split along with strong future earnings guidance.

Jamie Cox, Managing Partner at Harris Financial Group, commented, “Going into a long holiday weekend, the market often takes a breather. The Fed meeting minutes were the most significant catalyst, and not even Nvidia’s performance could fully refocus the market on the positives.”

US Stocks

Fundamental Analysis: 

Most major tech stocks rose, with Tesla and AMD both up over 3%, and Nvidia up over 2%, setting another record high.

The solar, semiconductor, and auto manufacturing sectors also saw gains, with Sunrun up over 11%, First Solar up over 10%, Workhorse up nearly 10%, Rivian up nearly 5%, Qualcomm up over 4%, and Micron Technology and Navitas Semiconductor up over 2%.

Software applications and airline stocks declined, with Workday plunging 15%, its biggest single-day drop since February 2016, and JetBlue Airways down over 2%.

Popular Chinese stocks showed mixed results, with the Nasdaq Golden Dragon China Index down 0.35% for the day and 8.84% for the week.

Li Auto rose over 3%, Pinduoduo and Tencent Music both up over 2%, and Bilibili, XPeng Motors, and Futu Holdings all up over 1%. Nio, Alibaba, Full Truck Alliance, iQIYI, and Vipshop saw slight gains. NetEase fell over 4%, JD.com nearly 3%, Baidu over 1%, and Weibo had a slight decline.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones: up 4.33 points, or 0.01%, to 39,069.59
• Nasdaq: up 184.76 points, or 1.10%, to 16,920.79
• S&P 500: up 36.88 points, or 0.70%, to 5,304.72

Hong Kong Stock Market

 Fundamental Analysis: 

Hong Kong stocks rebounded after an early dip. Tech stocks showed mixed results, with Lenovo Group up over 7%, Alibaba up 0.58%, NetEase down nearly 3%, and JD.com down over 2%.

Wind energy stocks led the gains, with Dongfang Electric up nearly 7%. Shipping stocks rose collectively, with COSCO Shipping Holdings up nearly 5%.

Gold and copper stocks also advanced, with China Gold International up over 4%.

Shipping stocks surged, with COSCO Shipping Holdings up nearly 5%. The Red Sea crisis has intensified capacity constraints, leading to soaring shipping rates.

Morgan Stanley noted in a report on the 24th that the Red Sea crisis has disrupted shipping capacity, causing shortages on European routes, and new ship deliveries have not fully compensated for the shortfall, driving up shipping prices.

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index: up 0.31%, to 18,665.79
• Hang Seng Tech Index: up 0.08%, to 3,802.52
• Hang Seng China Enterprises Index: up 0.31%, to 6,625.50

FTSE China A50 Index

 Fundamental Analysis: 

Mainland China’s A-shares showed mixed performance in the morning session, with the Shanghai Composite up 0.37% by midday, driven by gains in power and grid stocks.

Sector-wise, cross-border e-commerce, virtual power plants, port and shipping, and power sectors led the gains, while BC batteries, high-speed copper cable connections, agriculture, and consumer electronics sectors led the declines.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index: up 0.37%, to 3,100.22
• Shenzhen Component Index: down 0.27%, to 9,399.04
• ChiNext Index: down 0.65%, to 1,806.72
• STAR Market 50 Index: down 0.78%, to 721.56

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