US Stocks Close Higher, Trump-Linked DJT Soars Over 21%

2024-10-29 | Daily Analysis , Daily Insight , FTSE China A50 Index , HK Stocks , Securities , US Stocks

US Stocks Close Higher, Trump-Linked DJT Soars Over 21%

On Monday, all three major US stocks indices closed higher. Easing tensions in the Middle East over the weekend led to a sharp drop in oil prices, which fell over 6%, providing a boost to the indices.

This week marks the busiest period for earnings season in the US, with the market also closely watching a series of upcoming key economic data releases.

Last week, Tesla’s third-quarter earnings report made waves on Wall Street. This week, major tech giants like Apple, Microsoft, and Meta are set to report their latest quarterly results, drawing significant market attention.

E*Trade’s Head of Trading, Chris Larkin, stated, “This week’s earnings reports from big tech and jobs data will offer substantial momentum for the short-term market. However, it remains to be seen if investors will wait until after next week’s election to make major moves, especially given the recent market volatility.”

Traders are also keeping an eye on critical US economic data this week, including Wednesday’s preliminary Q3 GDP growth rate, Thursday’s Personal Consumption Expenditures (PCE) Price Index for September, and Friday’s non-farm payroll report. These reports may provide further clues on the Federal Reserve’s rate decision in November.

The Fed is expected to announce its latest rate decision on November 7, two days after the US presidential election on November 5.

Ritholtz Wealth Management’s Chief Market Strategist, Callie Cox, noted that pre-election tensions have yet to significantly impact the stock market. So far in October, the S&P 500 has not experienced a daily movement of over 1%—a level of calm not seen since October 2017.

In stock news, “Trump trades” continued to drive market movements. Trump Media & Technology Group (DJT) surged 21.59% on Monday, bringing its gains since early October to nearly 200%.

The latest spike was fueled by Trump’s high-profile campaign rally over the weekend. On Sunday, Trump held a well-publicized event at Madison Square Garden in New York, reigniting market confidence in his election prospects.

US Stocks

Fundamental Analysis: 

Major tech stocks showed mixed performance. Apple and Meta both gained close to 1%, while Amazon and Google saw modest gains. Tesla fell over 2%, with Nvidia and Microsoft seeing slight declines.

Airline, banking, and energy sectors moved higher, with Carnival Cruise and Plug Power both up over 4%, and Citigroup and American Airlines each gaining more than 3%.

Blockchain stocks rallied, with MARA Holdings up over 11%, Riot Platforms and Canaan rising more than 9%, and MicroStrategy up nearly 9%.

North American uranium and nuclear energy stocks also surged, with Oklo, a US nuclear company backed by OpenAI CEO Sam Altman, rising 28.21% to a new high. Philips plunged 15% after the company cut its sales growth forecast for the year.

Most popular Chinese stocks gained, with the Nasdaq Golden Dragon China Index up 4.05%. Nio jumped over 10%, iQiyi rose more than 9%, XPeng climbed over 8%, and Bilibili increased by more than 7%.

Other gains included Futu Holdings, Vipshop, and JD.com, each up more than 4%, with Baidu, Weibo, and Tencent Music up over 3%. Pinduoduo, Alibaba, and Full Truck Alliance rose over 2%, while NetEase and Li Auto gained over 1%.

Solar stocks also performed well, with JinkoSolar up over 17%, Canadian Solar up more than 15%, and Daqo New Energy up over 14%.

Technical Analysis: 

US Stocks Close Higher, Trump-Linked DJT Soars Over 21%
(S&P 500 Index, 1-day chart) 

Market Trends: 

  • Dow Jones: +273.17 points, +0.65%, at 42,387.57
  • Nasdaq: +48.58 points, +0.26%, at 18,567.19
  • S&P 500: +15.40 points, +0.27%, at 5,823.52

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s major indices opened higher but trended downward by the close. Tech stocks mostly rose, with NetEase up nearly 3% and Baidu and JD.com both gaining over 2%. Apple-related stocks also gained, with Cowell e Holdings up over 7%.

Chinese stocks listed in Hong Kong saw active buying, with Nio rising over 9%. However, steel stocks, which rallied yesterday, saw declines, with Chongqing Iron & Steel down more than 9%.

Energy stocks led the losses, with Sinopec and PetroChina both falling more than 3%. US crude and Brent oil prices both plummeted over 6% on Monday.

Citigroup noted that recent Israeli military actions are unlikely to escalate supply issues, though some experts warned that retaliatory moves from Iran in the coming weeks could raise oil market risk premiums.

US Stocks Close Higher, Trump-Linked DJT Soars Over 21%
(Hang Seng Index, 1-day chart) 

Technical Analysis: 

  • Hang Seng Index: -0.03%, at 20,593.34
  • Hang Seng Tech Index: +0.87%, at 4,613.69
  • Hang Seng China Enterprises Index: -0.08%, at 7,385.65

FTSE China A50 Index

Fundamental Analysis: 

China’s A-shares opened lower, with all three major indices declining in morning trading. As of midday, total market turnover reached 1.4091 trillion yuan, up by 158.2 billion yuan from the previous day. Over 4,000 individual stocks posted declines.

Among sectors, AI technology and education led gains, while coal, steel, and CRO (contract research organizations) were weak. AI stocks continued their strength, with SiMei Media, Bean Education, Zhenghe Eco, and China National Gold Finance all hitting limit-up. Three-child policy stocks opened higher but later retreated, with Helen Piano, Annil, and Haoyue Nursing all down over 5%.

High-flying stocks continued to attract interest, with Sucare Pharma rallying, hitting 40 yuan per share—a tenfold increase from its low in July. Coal stocks led losses, with Orchid Technology, Haohua Energy, and Dayou Energy down over 5%.

Technical Analysis: 

US Stocks Close Higher, Trump-Linked DJT Soars Over 21%
(SSE Composite Index, 1-day chart) 

Market Trends: 

  • Shanghai Composite Index: -0.65%, at 3,300.52
  • Shenzhen Component Index: -0.68%, at 10,613.69
  • ChiNext Index: -1.41%, at 2,197.80

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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