US Stock Market Ends Mixed, Micron Surges 14%

2024-09-26 | Daily Analysis , Daily Insight , FTSE China A50 Index , HK Stocks , Securities , US Stocks

US Stock Market Ends Mixed, Micron Surges 14%

On Wednesday, US stock markets closed mixed. The Dow and S&P 500 hit intraday highs before slipping, while the Nasdaq ended slightly higher.

Although September is typically a weak month for US stocks, all three major indices are currently up for the month, buoyed by the Federal Reserve’s sharp rate cut last week.

Solita Marcelli, Chief Investment Officer for the Americas at UBS Global Wealth Management, noted that this aligns with historical patterns, where the stock market tends to perform well when the Fed eases policy and the US economy is still in a growth phase. However, whether the Fed can achieve a “soft landing” for the US economy will be crucial in determining the outlook for other asset classes.

David Kostin, Chief US Equity Strategist at Goldman Sachs, stated that once the US presidential election results are clear, the path for further gains in the stock market will be clearer. He predicts that the S&P 500 could be trading near 6,000 points in a year. This forecast implies a roughly 5% gain from Tuesday’s close, with the index already up about 20% this year.

On the corporate side, semiconductor company Micron Technology surged nearly 15% after hours. Its fiscal Q4 2024 earnings report showed the largest revenue growth in over a decade, driven by booming demand for storage chips fueled by artificial intelligence. Nvidia, another AI-related stock, closed over 2% higher on Wednesday, with its market cap once again surpassing $3 trillion.

US Stock Market

Fundamental Analysis: 

Large-cap tech stocks were mixed: Nvidia rose over 2%, Tesla gained over 1%, while Apple, Amazon, and Google saw slight declines.

Utilities, semiconductors, and computer hardware led the gains, with Intel rising more than 3%, and AMD, Dell Technologies, and Arm climbing over 2%. Airlines, oil & gas, and agricultural stocks fell, with Plug Power down over 6%, Southwest Airlines and Tyson Foods losing more than 4%, and Carnival, Norwegian Cruise Line, Boeing, Shell, Total, Chevron, Bunge, and BP all dropping more than 2%.

Most major Chinese stocks fell, with the Nasdaq Golden Dragon China Index dropping 2.8%. Tencent Music, NIO, and iQiyi were down nearly 5%, Vipshop and New Oriental fell more than 4%, while Li Auto and Weibo declined over 3%. Xpeng, JD.com, Bilibili, Full Truck Alliance, Alibaba, and Baidu all closed down over 1%.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

  • Dow Jones: -293.47 points (-0.70%), closing at 41,914.75
  • Nasdaq: +7.68 points (+0.04%), closing at 18,082.21
  • S&P 500: -10.67 points (-0.19%), closing at 5,722.26

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s three major indices opened higher and continued to rise. Tech stocks surged, with Bilibili up over 8%, and JD.com and Baidu climbing more than 6%. Auto stocks extended gains, with Xpeng rising more than 6%, while Apple-related stocks were also active, with Hon Sun Industrial up over 8%.

Mainland property stocks rallied, with Shimao Group soaring more than 14% and China Oceanwide climbing over 13%. Media reports suggest that banks are now aware of potential adjustments to existing mortgage rates but have not yet received any formal notifications. Once new policies are issued, it may take banks a month or more to implement the changes.

Technical Analysis: 

US Stock Market Ends Mixed, Micron Surges 14%
(Hang Seng Index, 1-day chart) 

Market Trends: 

  • Hang Seng Index: +2.32%, closing at 19,572.45
  • Hang Seng Tech Index: +4.22%, closing at 4,090.22
  • Hang Seng China Enterprises Index: +2.77%, closing at 6,952.79

FTSE China A50 Index

Fundamental Analysis: 

Mainland Chinese stocks were mixed in morning trading. By midday, total market turnover was 550.3 billion yuan, down 248.1 billion yuan from the previous day. More than 3,500 individual stocks were up.

On the sector side, liquor, real estate, and steel stocks led the gains, while shipbuilding and CRO (Contract Research Organization) concepts lagged. Consumer-related sectors, led by liquor stocks, outperformed in the morning, with Yonghui Superstores hitting its third consecutive daily limit, while Rock Group, Hao Xiang Ni, and Shede Spirits also surged.

In real estate, stocks like Sunshine 100, Airport Real Estate, Quzhou Development, and Shenzhen Investment A hit their daily limits. Financial stocks remained strong, with Central South, Benxi Steel, Wuling Capital, and COFCO Capital also hitting daily limits. However, CRO stocks like Joinn Laboratories and Hehua dropped over 4%.

Technical Analysis: 

US Stock Market Ends Mixed, Micron Surges 14%
(SSE Composite Index, 1-day chart) 

Market Trends: 

  • Shanghai Composite: +0.64%, closing at 2,914.74
  • Shenzhen Component: +0.55%, closing at 8,584.89
  • ChiNext Index: -0.22%, closing at 1,637.95

Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.  
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein. 

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. Doo 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. 
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution. 

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