US Stocks Slip as Investors Await Jobs Report

2024-10-04 | Daily Analysis , Daily Insight , HK Stocks , Securities , US Stocks

US Stocks Slip as Investors Await Jobs Report

US stocks closed lower on Thursday. Ongoing tensions in the Middle East dampened risk appetite and drove oil futures prices higher. Meanwhile, initial jobless claims in the US slightly exceeded expectations last week. Investors are now awaiting Friday’s critical non-farm payroll report.

Concerns about potential disruptions to oil supplies due to the escalating Middle East tensions continued to push oil prices higher. US WTI crude oil surged approximately 5% on Thursday, marking its third consecutive day of gains. For the week so far, the commodity has jumped more than 8%.

Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, commented: “While the stock market is grappling with multiple concerns—ranging from escalating tensions in the Middle East, the East Coast port strike, to uncertainties surrounding the presidential election—liquidity remains key. Now that the Federal Reserve has started cutting rates, this signals that the market has room to continue rising.”

US Stocks

Fundamental Analysis: 

Major tech stocks mostly fell. Apple dropped 0.49%, Microsoft declined 0.14%, while Nvidia rose 3.37%, pushing its market cap back above $3 trillion. Google C shares slipped 0.06%, Amazon lost 1.52%, while Meta gained 1.74%, and Tesla plunged 3.36%.

Most popular Chinese stocks also declined. Fangdd fell 13.93%, Bilibili dropped 8.80%, NIO slipped 7.07%, and XPeng Motors declined 7.05%. Baidu fell 5.12%, Li Auto was down 3.61%, TAL Education lost 3.47%, Alibaba dropped 2.09%, Tencent Music slid 1.60%, JD.com fell 0.45%, and Pinduoduo dipped 0.06%.

Technical Analysis: 

US Stocks Slip as Investors Await Jobs Report
(S&P 500 Index, 1-day chart) 

Market Trends: 

  • Dow Jones: Fell 184.93 points, or 0.44%, to close at 42,011.59
  • Nasdaq: Dropped 6.64 points, or 0.04%, to close at 17,918.48
  • S&P 500: Declined 9.60 points, or 0.17%, to close at 5,699.94

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s three major indices opened lower but rallied throughout the day. Semiconductor stocks surged, with Shanghai Fudan up 23% and SMIC climbing 21%. The pharmaceutical outsourcing sector also saw strong gains, with WuXi AppTec rising 16% and WuXi Biologics up 13%.

Oil and gas stocks were active, with China Oil & Gas Holdings surging 43% and CNOOC Oilfield Services up 5%. Chinese brokerage firms extended their rally, with Shenwan Hongyuan up more than 23%, Everbright Securities up 16%, and China Merchants Securities climbing 14%.

Oil and gas stocks remained buoyant, with China Oil & Gas Holdings soaring 43% and CNOOC Oilfield Services gaining 5%. Concerns about an escalation in Middle East conflicts disrupting supply—particularly fears that Israel may strike Iran’s oil infrastructure—drove oil prices higher for the third consecutive day.

US crude oil briefly surged 5.5%, nearing $74 per barrel, while Brent crude rose 5%, breaking $77, marking its highest level in over four weeks.

Technical Analysis: 

US Stocks Slip as Investors Await Jobs Report
(Hang Seng Index, 1-day chart) 

Market Trends: 

  • Hang Seng Index: Rose 1.79%, closing at 22,509.98
  • Hang Seng Tech Index: Gained 3.57%, closing at 5,156.61
  • Hang Seng China Enterprises Index: Increased by 2.07%, closing at 8,077.98

FTSE China A50 Index

The Chinese mainland stock market (A-shares) is closed from October 1 to October 7 for the National Day holiday and will resume trading on Tuesday, October 8.


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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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