On Thursday, US market closed mixed. The Federal Reserve’s December meeting minutes revealed concerns about inflation driven by Trump’s policies and signaled a more cautious approach to rate cuts. Traders are assessing the likelihood of further monetary easing in the face of persistent inflationary pressures.
The Federal Open Market Committee (FOMC) minutes from the December 17–18 meeting highlighted the Fed’s shift toward a more cautious stance, with plans to slow the pace of rate cuts in the coming months.
The minutes stated, “Participants noted that the Committee was at or near the point where it would be appropriate to slow the pace of policy easing. Many participants emphasized that monetary policy decisions over the coming quarters would require careful deliberation.”
During the press conference following the December meeting, Fed Chair Jerome Powell noted that the voting results were more evenly split compared to previous rate cuts.
US Stock Market Overview
Sector Performance
Tech stocks delivered a mixed performance:
- Decliners: Meta dropped over 1%, Nvidia and Google posted slight declines.
- Gainers: Microsoft, Tesla, and Apple saw modest gains.
Chip stocks struggled:
- Notable Decliners: AMD and GlobalFoundries fell over 4%, Micron Technology and TSMC dropped more than 2%, and Advanced Micro Devices (AMD) plunged over 5%.
Quantum computing stocks saw steep losses:
- Quantum Computing: Fell over 43%.
Chinese ADRs
The Nasdaq Golden Dragon China Index fell 0.67%, with most Chinese ADRs in the red:
- Decliners: XPeng (-5%), NIO and Kingsoft Cloud (-4%), Bilibili (-3%), and Li Auto (-2%).
- Gainers: TAL Education rose over 5%, and NetEase gained more than 2%.
Technical Analysis of US Market
Market Recap
- Dow Jones: +106.84 points (+0.25%) to 42,635.20.
- Nasdaq: -10.8 points (-0.66%) to 19,478.88.
- S&P 500: +9.22 points (+0.16%) to 5,918.25.
Hong Kong Market Overview
Hong Kong stocks ended mixed on Thursday.
Sector Performance
- Tech Stocks: Declined broadly. Tencent dropped over 1%, Meituan and JD.com followed suit, while NetEase gained more than 4%.
- Automobile Sector: Mixed performance; XPeng fell nearly 2%.
- Gold Stocks: Gained, with Zhaojin Mining rising over 1%.
- Semiconductor Stocks: Outperformed, led by SMIC’s 4% gain, driven by news of potential export restrictions.
Market Commentary
Reports indicated that the Biden administration is planning new AI chip export restrictions targeting companies like Nvidia. The new rules may impose a three-tier restriction system and could be announced as early as Friday.
Technical Analysis of Hong Kong Market
Market Recap
- Hang Seng Index: +0.09% to 19,296.89.
- Hang Seng Tech Index: +0.17% to 4,314.75.
- Hang Seng China Enterprises Index: +0.13% to 6,999.83.
A50 & China A-Share Market Overview
Mainland Chinese markets opened lower but recovered to close with narrow fluctuations. Combined turnover across the Shanghai, Shenzhen, and Beijing exchanges totaled RMB 702.36 billion, with 2,944 stocks rising, 2,246 falling, and 264 unchanged.
Sector Highlights
- Top Gainers: Copper-clad laminates (CCL), HVLP copper foil, routers, supply chain cooperative concepts, printed circuit boards (PCB), water pumps, and AMD-related stocks.
- Top Decliners: Shipping, water heaters, injection molding machines, port operations, engineering services, small appliances, plant-based beverages, oilfields, and gasfields.
Technical Analysis of China Market
Market Recap
- Shanghai Composite Index (SSE): -0.29% to 3,220.72.
- Shenzhen Component Index (SZSE): +0.38% to 9,982.77.
- ChiNext (Growth Enterprise Market Index): +0.30% to 2,014.52.
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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.
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