US Stocks Rally, Led by Nvidia’s 4% Surge

2024-08-20 | Daily Analysis , Daily Insight , FTSE China A50 Index , HK Stocks , Securities , US Stocks

US Stocks Rally, Led by Nvidia's 4% Surge

US stocks closed higher on Thursday, with the Dow Jones Industrial Average rising for the fifth consecutive day. Both the S&P 500 and Nasdaq extended their winning streak to eight days.

The Conference Board’s Leading Economic Index for July showed a decline but did not signal a recession.

This week, investors are focused on the Federal Reserve’s meeting minutes and Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday.

August began with volatility in the US stock market, with the S&P 500 experiencing its worst day since 2022 on August 5. However, recent economic data have calmed market jitters, renewing hope for a soft landing for the US economy. Strong retail sales and initial jobless claims data last week, along with robust earnings from Walmart, helped reassure investors.

Louise Dudley, Global Equities Portfolio Manager at Federated Hermes, commented, “The market has stabilized and now feels more solid. While there is some volatility in the medium term, we are certainly looking to take advantage of price fluctuations. Some large-cap stocks still offer top-tier growth opportunities.”

US Stocks

Fundamental Analysis: 

Most large-cap tech stocks rose, with Nvidia surging over 4%, marking its sixth consecutive day of gains, bringing its cumulative gain to 23%. Tesla climbed more than 3%, and Alphabet advanced over 2%.

Gains were led by sectors such as precious metals, industrial metals and mining, and semiconductors. American Gold Corp rose over 7%, Hecla Mining gained more than 6%, Alcoa climbed over 5%, Advanced Micro Devices (AMD) and Century Aluminum each gained over 4%, while Intel and Pan American Silver rose more than 3%.

On the downside, the department store and coking coal sectors lagged, with Kohl’s falling more than 2% and Dillard’s down over 1%.

Chinese stocks listed in the US mostly gained, with the Nasdaq Golden Dragon China Index rising 1.39%. iQIYI surged over 6%, Li Auto rose more than 4%, while XPeng, Bilibili, and NIO each gained more than 3%.

NetEase and Full Truck Alliance climbed over 2%, while Futu Holdings, Weibo, Baidu, and Tencent Music each gained more than 1%. Alibaba and JD.com saw slight gains, while Vipshop posted a minor decline.

Technical Analysis: 

US Stocks Rally, Led by Nvidia's 4% Surge
(S&P 500 Index, 1-day chart) 

Market Trends: 

  • Dow Jones: Up 236.77 points, or 0.58%, to 40,896.53.
  • Nasdaq: Up 245.05 points, or 1.39%, to 17,876.77.
  • S&P 500: Up 54.00 points, or 0.97%, to 5,608.25.

Hong Kong Stock Market

 Fundamental Analysis: 

Hong Kong’s major indices opened higher but closed lower. Tech stocks were mixed, with Baidu and NetEase rising about 1%, while Lenovo fell over 2% and Alibaba declined more than 1%.

Coal stocks led losses, with Yanzhou Coal Australia plunging more than 15%. Oil stocks also struggled, with PetroChina falling over 3%. Home appliance stocks were weak, with Hisense Home Appliances dropping nearly 5%.

On the other hand, automotive stocks bucked the trend, with NIO rising more than 3%. Automotive stocks rose against the trend, with NIO gaining more than 3%.

US Republican presidential candidate Donald Trump stated that if elected, he would consider ending the $7,500 tax credit for electric vehicle purchases, arguing that tax breaks and incentives are generally not beneficial.

He also mentioned that he would consider inviting Tesla CEO Elon Musk to join his cabinet or serve as a White House advisor, praising Musk as a “very smart person.”

Technical Analysis: 

US Stocks Rally, Led by Nvidia's 4% Surge
(Hang Seng Index, 1-day chart) 

Market Trends: 

  • Hang Seng Index: Down 0.36%, closing at 17,506.34.
  • Hang Seng Tech Index: Down 0.41%, closing at 3,502.67.
  • Hang Seng China Enterprises Index: Down 0.53%, closing at 6,192.79.

FTSE China A50 Index

Fundamental Analysis: 

Mainland Chinese stock indices opened higher but closed lower, with all three major indices dropping around 1%. Gaming stocks showed strength, bucking the broader market trend.

Sectors leading gains included black home appliances, energy metals, internet commerce, and concepts such as titanium dioxide, Starflash, e-sports, and gaming.

On the other hand, sectors like coal mining and processing, rail transportation equipment, precious metals, motors, oil and gas exploration and services, and environmental protection equipment, along with concepts like shale gas, digital taxation, and digital currency, led the declines.

Technical Analysis: 

US Stocks Rally, Led by Nvidia's 4% Surge
(SSE Composite Index, 1-day chart) 

Market Trends: 

  • Shanghai Composite Index: Down 0.98%, closing at 2,865.18.
  • Shenzhen Component Index: Down 1.14%, closing at 8,261.22.
  • ChiNext Index: Down 1.00%, closing at 1,573.33.

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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