US Markets Highlights
On Tuesday, all three major US indexes closed lower, ending the S&P 500’s six-day winning streak. Markets pulled back after St. Louis Fed President Musalem warned that Trump’s tariff policies could pressure the US economy and weaken the labor market. Meanwhile, Elon Musk said he plans to significantly cut political spending and remain Tesla CEO for at least the next five years.
Speaking Tuesday, Musalem stated:
“Even after the brief easing on May 12, tariffs may still have a significant negative impact on the near-term outlook.”
He added:
“Overall, tariffs could suppress economic activity and further strain the labor market.”
JPMorgan CEO Jamie Dimon also weighed in, saying markets are showing “unusual complacency” after bouncing back from Trump’s “reciprocal tariffs” announcement. He warned that inflation and stagflation risks remain underappreciated.
Elon Musk, speaking remotely at an economic forum, pledged to reduce political contributions and confirmed he would stay on as Tesla CEO for at least five more years, unless, as he put it, “I die.” His remarks eased investor concerns about his commitment to Tesla. The stock jumped as much as 3% intraday before trimming gains into the close.
Sector Snapshot:
- Big tech mostly declined: Amazon and Google each fell over 1%.
- Travel & leisure stocks slid: Norwegian Cruise Line and Airbnb dropped more than 3%.
- Precious metals rallied: Vista Gold +16%, Coeur Mining +5%, Harmony Gold +4%, Pan American Silver and Kintian Gold +3%+
Chinese ADRs:
Most popular Chinese stocks fell:
- Nasdaq Golden Dragon Index: -0.65%
- Trip.com -5%, NIO -2%, iQIYI, XPeng -1%+
- Alibaba +1%+
US Market – Technical Analysis
US Market Close
- Dow Jones -114.83 pts (-0.27%) → 42,677.24
- Nasdaq -72.75 pts (-0.38%) → 19,142.71
- S&P 500 -23.14 pts (-0.39%) → 5,940.46
Hong Kong Markets Highlights
Hong Kong stocks opened higher and extended gains throughout the session.
- Tech stocks rose: Bilibili +6%, Kuaishou and NetEase +1%+, while Xiaomi and Baidu fell more than 1%.
- Gold miners rallied: Chifeng Gold +9%
- CXO (Contract R&D and manufacturing) stocks surged: Pharmaron +13%
Pop Mart Hits New All-Time High:
Pop Mart shares surged again, rising over 5% intraday to HK$220, a new all-time high. As of midday, the stock was up over 3% at HK$215.40. After a 350% rally in 2023, Pop Mart is already up 140% year-to-date in 2024. The boost came after the global success of its newly released Labubu Gen-3 vinyl plush line.
Meitu Jumps on Alibaba Investment:
Meitu soared 12% after announcing a $250 million convertible bond investment from Alibaba, with net proceeds of approximately $249.6 million. The bonds carry a 1% annual interest and a 3-year maturity, convertible into Meitu shares at HK$6.00 per share.
Hong Kong Market – Technical Analysis
Hong Kong Market Close
- Hang Seng Index +0.53% → 23,807.13
- Hang Seng Tech Index +0.43% → 5,338.31
- China Enterprises Index +0.68% → 8,647.10
A-Share Markets (Midday) Highlights
All three major mainland indexes rose in morning trading.
- Total turnover reached ¥778.9 billion, up ¥26.7 billion from the previous session.
- Around 3,500 stocks were in the red despite the broad index gains.
Sector Leaders:
- Solid-state batteries, coal, and biotech led the charge.
- Top gainers: Jinlongyu, Gotion High-Tech, Binhai Energy, Shengyang, LeapTech (limit up)
- Biotech movers: Staidson, 3SBio, Haichen Pharma, Harbin Sanlian (limit up)
- Energy stocks: Dayou Energy, Leshan Power, Hainan Development (limit up)
Weak Sectors:
- Industrial machinery and nuclear fusion fell sharply.
- Zhongzhou Special Materials and Wangzi Materials dropped over 5%.
China Market – Technical Analysis
A-Share Market Midday Snapshot:
- Shanghai Composite +0.39% → 3,393.49
- Shenzhen Component +0.53% → 10,303.99
- ChiNext Index +0.99% → 2,068.65
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