On Tuesday, US stocks ended mixed. The Dow Jones Industrial Average slipped slightly, while the Nasdaq gained 240 points, led by Nvidia’s strong performance. President-elect Trump denied plans to narrow the scope of tariffs. US markets will close on Thursday to honor former President Jimmy Carter.
The December non-farm payrolls report, set to be released this Friday, will serve as the final major economic indicator ahead of the Federal Reserve’s end-of-month meeting. Analysts expect an increase of 150,000 jobs, with the unemployment rate holding steady at 4.2%.
Market Commentary
Callie Cox, Chief Market Strategist at Ritholtz Wealth Management, noted:
“Unemployment in the US is climbing, and it’s becoming harder for people to find jobs. The labor market could deliver unexpected shocks. Additionally, the 10-year Treasury yield is approaching its historic high of 4.6%, a level that has investors on edge. Bond traders typically brace themselves on non-farm payroll report days.”
Stock Highlights
Chipmakers led gains after Foxconn announced record fourth-quarter revenue. Nvidia rose 3.4% to a record closing high, while Micron Technology surged 10.45%.
US Stocks Overview
Tech Sector Performance
Large-cap tech stocks mostly gained
- Nvidia: +3%, hitting a record closing high.
- Meta: +4%.
- Google: +2%.
- Microsoft & Amazon: +1%.
- Apple & Tesla: Modest gains.
The Consumer Electronics Show (CES) boosted chip stocks, with the Philadelphia Semiconductor Index rising nearly 4%.
- Micron Technology: +10%.
- AMD: +9%.
- ASML: +7%.
- TSMC: +5%, reaching a new record high.
Chinese ADRs
Most Chinese ADRs declined:
- Decliners: Tencent ADR fell over 7%, Kingsoft Cloud dropped 5%, and Li Auto slid 3%. Baidu, JD.com, and Alibaba posted smaller losses.
- Gainers: iQIYI and NIO rose over 1%, while Pinduoduo climbed 2%.
Technical Analysis of US Market
Market Recap
- Dow Jones: -25.57 points (-0.06%) to 42,706.56.
- Nasdaq: +243.30 points (+1.24%) to 19,864.98.
- S&P 500: +32.91 points (+0.55%) to 5,975.38.
Hong Kong Market Overview
Hong Kong stocks opened sharply lower and remained weak throughout the session.
Key Movers
- Tech Stocks: Tencent fell over 7% after being added to the US Department of Defense’s CMC list. NetEase lost over 1%, while Xiaomi and Baidu also declined.
- Property Sector: Agile Group dropped more than 3%.
- Auto Stocks: Li Auto and Leapmotor slid over 1%.
Tencent’s Response
Tencent issued a statement calling its inclusion in the list a mistake, clarifying that it is not a military enterprise or supplier. Tencent added that the listing would not affect its business operations and expressed willingness to work with US authorities to resolve the misunderstanding.
Technical Analysis of Hong Kong Market
Market Recap
- Hang Seng Index: -1.93% to 19,309.05.
- Hang Seng Tech Index: -2.37% to 4,290.75.
- Hang Seng China Enterprises Index: -2.14% to 6,982.81.
A50 & China A-Share Market Overview
Mainland Chinese markets initially opened lower but briefly turned positive before retreating again in the afternoon under pressure from Hong Kong markets. Combined turnover for the Shanghai and Shenzhen exchanges totaled RMB 603.91 billion, down RMB 88.8 billion from the previous session. Nearly 3,000 stocks declined.
Sector Highlights
- Key Decliners:
- CATL and Tencent, impacted by their inclusion in the US CMC list, opened sharply lower.
- Healthcare sectors, including CRO, flu-related, and traditional Chinese medicine stocks, lost momentum.
- Consumer sectors, such as retail and tourism, faced pullbacks.
- Key Gainers:
- Tech sectors rebounded on CES news, with chipmakers, high-speed copper connections, and display panels seeing strong performance.
- TikTok-related stocks surged, with Yuanlong Yatu hitting limit-up.
- Emerging sectors like data center power supply and cultivated diamonds also posted solid gains.
Notable Movers
- Financials: Dragged down indices after early strength faded.
- New Listings: Newly listed stocks performed strongly, with N-Tianhe surging over 700% intraday, triggering trading halts.
Technical Analysis of China Market
Market Recap
- Shanghai Composite Index (SSE): -0.32% to 3,196.78.
- Shenzhen Component Index (SZSE): Unchanged at 9,885.42.
- ChiNext (Growth Enterprise Market Index): -0.55% to 2,003.2.
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Disclaimer
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