On Thursday, US stocks closed lower, with the Dow Jones Industrial Average falling more than 330 points, marking its third consecutive decline.

Cloud computing giant Salesforce plummeted around 20%, its largest single-day drop in 20 years, due to poor performance and a bleak outlook.

The US first-quarter GDP fell short of expectations, raising concerns about economic growth. Market focus is now on the April PCE inflation data set to be released on Friday.

Legendary investor and Hussman Investment Trust president John Hussman recently warned in a report that the US stock market’s historical highs are reminiscent of a wild rebound but represent a bull market that will eventually crash.

Known for accurately predicting the 2000 and 2008 market crashes, Hussman reiterated that the US stock market could drop by as much as 70% in this cycle.

Ross Mayfield, an investment strategy analyst at Baird, noted that the 10-year US Treasury yield surpassed 4.6% for the first time in a month on Wednesday, significantly dampening investor sentiment.

The sharp rise in bond yields could be bad news for stock investors, as safer investments like treasury bonds and money market funds become more attractive, reducing the appetite for stock risk.

US Stocks

Fundamental Analysis: 

Major tech stocks mostly declined. Nvidia dropped over 3% after reports that the US is restricting Nvidia and AMD from selling AI chips in the Middle East. Microsoft fell over 3%, and Google dropped over 2%. However, Tesla rose more than 1%.

Popular Chinese stocks mostly gained, with the Nasdaq Golden Dragon China Index up 1.37%. Nio surged over 9%, Bilibili and XPeng Motors rose over 5%, and Zeekr and Weibo climbed over 4%. JD.com gained over 3%, while Li Auto and Tencent Music were up more than 2%.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones: -330.06 points, -0.86%, at 38,111.48
• Nasdaq: -183.50 points, -1.08%, at 16,737.08
• S&P 500: -31.47 points, -0.60%, at 5,235.48

Hong Kong Stock Market

 Fundamental Analysis: 

Hong Kong’s major indices closed higher. Most tech stocks gained, with Kuaishou rising over 4%, JD.com up more than 2%, and Baidu, Alibaba, Xiaomi, and Tencent each climbing around 1%.

The biotech sector saw significant gains, led by Akeso Biopharma, which jumped 34% on progress with a new drug.

Coal stocks performed well, with China Qinfa Group leading the pack with an 8% gain. Auto stocks were strong, with Nio surging over 10%. Autohome’s IPO saw a nearly 53% increase on its debut.

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index: +0.94%, at 18,402.19
• Hang Seng Tech Index: +0.96%, at 3,788.70
• Hang Seng China Enterprises Index: +1.10%, at 6,533.86

FTSE China A50 Index

 Fundamental Analysis: 

A-shares opened higher but later gave up some gains. The three major indices posted small gains.

The consumer electronics sector was strong, led by AI PC stocks with Overclocking Technology, Xinyun Electronics, Wanxiang Technology, and Spring Electronics hitting the daily limit.

The commercial aerospace concept saw a resurgence, with Tianyin Electromechanical, Western Testing, Tongguang Cable, and Aerospace Morning Light hitting their daily limits.

The robotics sector rebounded, with Siling Shares and Yokogawa Precision up more than 10%.

Auto parts stocks were active, with Tongda Electric and Shenhua Holdings hitting the daily limit.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index: +0.27%, at 3,099.99
• Shenzhen Component Index: +0.36%, at 9,418.48
• ChiNext Index: +0.54%, at 1,822.92
• STAR Market 50 Index: +0.34%, at 745.26

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