On Wednesday, US stock market ended lower ahead of the Thanksgiving holiday, with the S&P 500 snapping a seven-day winning streak. The Nasdaq declined due to pressure from tech stocks such as Dell and HP.
Market attention continues to focus on President Trump’s tariff policies and his Cabinet appointments. It is worth noting that the US stock market will be closed on Thursday, November 28th, for the Thanksgiving holiday.
The US released a batch of important economic data yesterday, which led to a slight increase in expectations for a 25-basis-point rate cut by the Federal Reserve in December. Data showed that the third-quarter US GDP growth rate remained at 2.8%, unchanged from the initial estimate.
This marks a slowdown from the 3% growth in Q2, but the GDP report suggests the US economy remains resilient. Initial jobless claims stayed low, but continuing claims reached their highest level since November 2021, signaling some cooling in the labor market.
The October Personal Consumption Expenditures (PCE) Price Index rose 2.3% year-on-year, up from 2.1% in September, while the month-on-month growth remained unchanged at 0.2%. The core PCE Price Index, which excludes food and energy, ticked up to 2.8% from 2.7%, with rising service prices pushing this key inflation gauge to its highest level since April.
David Alcaly, Chief Macro Strategy Analyst at Lazard Asset Management, noted, “The latest data doesn’t change the outlook for a gradual slowdown in inflation, but due to potential changes in tariff policies, many observers are now looking for hawkish signals from the Fed.” According to the CME Group’s FedWatch tool, the market currently expects a 68.2% probability of a 25-basis-point rate cut by the Fed in December.
In A-shares, semiconductor design company Cambricon, which develops AI chips, surged nearly 10% in the morning session, hitting a new all-time high. Since the Chinese government’s “policy package” was announced in September, Cambricon’s stock price has soared by nearly 170%, with a year-to-date gain exceeding 300%.
Changjiang Securities, in a previous report, stated that Cambricon, as a leading domestic AI chip company, is seeing an increasing number of orders. Coupled with strong chip supply capabilities and cost control measures in its Q3 2024 financials, the company is poised for significant future growth, maintaining a “Buy” rating.
US Stock Market
Fundamental Analysis:
Tech stocks mostly declined, with Nvidia, Microsoft, Tesla, and Amazon each falling over 1%. Apple and Meta saw small drops.
The semiconductor and precious metals sectors weakened, with Micron Technology, Broadcom, Century Aluminum, and Alcoa down by more than 3%.
Arm and Harmony Gold also dropped over 2%, while Intel, AMD, and TSMC fell by more than 1%. Dell Technologies plunged over 12%, as its Q3 revenue and Q4 guidance missed expectations, and HP dropped 11.36%.
Chinese ADRs had a strong performance, with the Nasdaq China Golden Dragon Index rising 2.82%. iQIYI surged more than 8%, Li Auto gained over 6%, and NetEase Youdao and JD.com rose more than 5%. Xiaopeng Motors, Bilibili, and Tencent Music increased about 4%.
Additionally, Chinese autonomous driving company Pony.ai officially listed on the Nasdaq, but its debut ended with an 8% decline.
Technical Analysis:
Market Trends:
- Dow Jones: -138.25 points, down 0.31%, closing at 44,722.06
- Nasdaq: -115.10 points, down 0.60%, closing at 19,060.48
- S&P 500: -22.89 points, down 0.38%, closing at 5,998.74
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s three major indices opened lower but recovered during the session. Technology stocks generally declined, with Meituan, Baidu, NetEase, and Alibaba falling more than 2%. Chinese brokerage stocks also dropped, with China Galaxy down nearly 3%.
Additionally, shares of Yixin Group fell more than 50% after being accused by the Hong Kong Securities and Futures Commission of excessive ownership concentration. Biotech company Jiuyuan Gene also saw a sharp 34% decline on its first day of trading.
Auto stocks broadly declined, with BYD falling more than 3%. Following market discussions on BYD’s 10% price reduction request to suppliers, SAIC Maxus also sought a similar price cut.
UBS’s head of China auto industry research, Gong Min, commented that a price war in the auto sector could resurface as early as Q1 2025, possibly even earlier than expected.
Technical Analysis:
Technical Analysis:
- Hang Seng Index: -1.32%, closing at 19,344.07
- Hang Seng Tech Index: -1.28%, closing at 4,318.64
- Hang Seng China Enterprises Index: -1.51%, closing at 6,921.28
FTSE China A50 Index
Fundamental Analysis:
The three A-share indices all declined in early trading. By lunchtime, total market turnover had reached 1.0042 trillion yuan, an increase of 96.2 billion yuan compared to the previous day. More than 3,000 stocks rose.
In terms of sectors, Shenzhen state-owned enterprises, commercial retail, agriculture, IP economy, and new urbanization concept stocks saw the strongest gains. Precious metals, automotive manufacturing, film and television, and insurance sectors were the weakest performers.
The Shenzhen state-owned enterprises reform sector surged, with stocks like JianKe Institute, Lihe Innovation, Shenzhen Siger, and Shenzhen Textile A hitting the daily limit. The IP economy sector remained active, with stocks such as New World and Hongxing Co. continuing their momentum.
The semiconductor sector also saw a jump, with Cambricon soaring by 10%, setting a new all-time high. Other semiconductor stocks like Injoinic, Goke Microelectronics, and National Chip Technology also posted gains.
Technical Analysis:
Market Trends:
- Shanghai Composite Index: -0.30%, closing at 3,299.87
- Shenzhen Component Index: -0.85%, closing at 10,476.43
- ChiNext Index: -1.30%, closing at 2,179.98
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