Market Recap
On Wednesday, US stocks closed mixed, with the Dow falling for a third consecutive session. Softer CPI data eased recession concerns, fueling a rebound in beaten-down tech stocks and pushing the Nasdaq higher. Meanwhile, Trump’s 25% tariffs on all imported steel and aluminum took effect, and markets closely watched developments on a potential Ukraine ceasefire.
The US Labor Department reported that, after seasonal adjustments, the February Consumer Price Index (CPI) rose 2.8% year-over-year, below expectations of 2.9% and the previous reading of 3.0%.
Excluding food and energy, core CPI increased 3.1% YoY, lower than the forecasted 3.2% and January’s 3.3%.
The Bureau of Labor Statistics noted that nearly half of the overall CPI increase was driven by housing costs.
Despite slowing inflation, the report indicated that price levels remain above the Federal Reserve’s 2% target, potentially limiting the Fed’s ability to cut rates quickly if economic weakness emerges. Policymakers fear that easing too soon could reignite inflationary pressures.
US Stocks Market Highlights
Major tech stocks mostly gained, with Tesla surging over 7%, Nvidia up 6%, and Meta and Broadcom rising more than 2%. Apple was an outlier, slipping 1%.
Leading gainers: Semiconductors, metals, and automakers—Micron jumped 7%, Century Aluminum rose 5%, Intel and AMD gained 4%+, while Lucid and Rivian climbed 2%+.
Biggest laggards: Food & beverage, coal, and chemicals—Olin tumbled 5%, Hershey and Mondelez dropped 4%, and Dow Chemical slid 2%.
Chinese stocks were mixed, with the Nasdaq Golden Dragon China Index falling 1.21%. 21Vianet slumped 7%, while Hesai, Bilibili, and XPeng lost over 6%.
US Stocks Market – Technical Analysis
US Stocks Market Performance
- Dow Jones: ↓ 82.55 pts (-0.20%) to 41,350.93
- Nasdaq: ↑ 212.35 pts (+1.22%) to 17,648.45
- S&P 500: ↑ 27.23 pts (+0.49%) to 5,599.29
Hong Kong Stocks Market Highlights
The Hang Seng Index opened higher but reversed course, closing lower as tech stocks slumped. Kuaishou fell over 5%, Bilibili lost nearly 4%, while Alibaba and Meituan each dropped over 2%.
Banking stocks gained, with China Merchants Bank up nearly 2%, while gold miners rallied, led by Zijin Mining’s 2% increase.
Gold stocks rose as spot gold hit $2,944.51/oz, the highest since Feb 25. According to the World Gold Council, global central banks bought 18 tons of gold in January, equivalent to nearly 20,000 ounces daily, sustaining gold’s three-year uptrend.
Hong Kong Market – Technical Analysis
Hong Kong Market Performance
- Hang Seng Index: ↓ 0.74% to 23,426.80
- Hang Seng Tech Index: ↓ 2.17% to 5,718.54
- China Enterprises Index: ↓ 0.81% to 8,611.68
A50 & China A-Share Market Highlights
Chinese A-shares struggled, opening lower and drifting downward. Over 4,400 stocks declined, with total turnover reaching ¥10.49 trillion.
Top gainers: Coal, aluminum, biotech, and state-owned asset restructuring stocks.
Biggest losers: Robotics, automation, and high-tech materials.
China Market – Technical Analysis
China Market Performance
- Shanghai Composite: ↓ 0.44% to 3,357.02
- Shenzhen Component: ↓ 1.02% to 10,732.4
- ChiNext Index: ↓ 0.99% to 2,169.55
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Disclaimer
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