Market Recap
On Friday, US market closed lower, with tech stocks leading the decline. The S&P 500 has now dropped over 10% from its recent high, officially entering correction territory. The February PPI report showed flat growth, but analysts anticipate inflation could pick up in the coming months.
Meanwhile, Trump threatened retaliatory tariffs on the EU, including a 200% tax on European wine and spirits. Investors also weighed the growing risk of a US government shutdown this Saturday.
The Labor Department reported that February PPI remained unchanged MoM (0.0% vs. expected 0.3%), while YoY growth stood at 3.2% (vs. expected 3.3%). Core PPI (excluding food and energy) declined 0.1% MoM, marking its first contraction in months.
Despite weaker-than-expected inflation data, analysts warn that Trump’s tariffs could drive up prices later this year. US Commerce Secretary Lutnick stated that the impact of these tariffs will likely be reflected in Q3 and Q4 inflation data.
US Market Highlights
Tech Stocks & Semiconductors Decline
Major tech stocks were mostly lower:
- Meta -4%
- Apple -3%
- Tesla -3%
- Google, Amazon -2%
Semiconductor and crypto stocks also fell:
- Super Micro Computer -8%
- Coinbase -7%
However, Intel surged 14% after appointing Lip-Bu Tan as its new CEO.
Chinese Stocks Performance
The Nasdaq Golden Dragon China Index declined 0.2%, with losses in:
- Hesai -8%
- NIO -7%
- Zhihu -6%
Meanwhile, Xpeng and JD.com each gained 2%.
US Market – Technical Analysis
US Market Performance
- Dow Jones fell 537.36 points (-1.30%) to 40,813.57
- Nasdaq Composite dropped 345.44 points (-1.96%) to 17,303.01
- S&P 500 slid 77.78 points (-1.39%) to 5,521.52
Hong Kong Market Highlights
Key Gainers:
- Meituan +5%
- JD.com +4%
- Baidu, Kuaishou, Tencent, Alibaba +3%
Gold stocks soared as safe-haven demand increased:
- China Gold International +8%
Hong Kong’s three major indices posted strong gains:
- Hang Seng Index +2.55% to 24,060.85
- Hang Seng Tech Index +2.75% to 5,905.67
- China Enterprises Index +3.16% to 8,913.30
Hong Kong Market – Technical Analysis
A50 & China A-Share Market Highlights
Mainland Chinese stocks also advanced, with over 4,100 stocks gaining.
- Shanghai Composite +1.64% to 3,413.98
- Shenzhen Component +2.06% to 10,957.5
- ChiNext Index +2.83% to 2,227.29
Leading Sectors:
- Financials: China Galaxy Securities hit a record high.
- Metals: Tin & rare earth stocks surged.
- Deep-sea Technology: Giant Networks, Oriental Ocean hit limit-up.
However, defense and AI computing stocks struggled, with several hitting limit-down.
China Market – Technical Analysis
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. D Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
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