US Markets
On Monday, the US markets showed mixed performance. The Dow Jones Industrial Average fell for the eighth consecutive trading day, while the Nasdaq reached a new all-time high. This week, investors are focused on the Federal Reserve’s December monetary policy meeting and potential policy changes from President-elect Trump.
The Nasdaq surged to an intraday high of 20,204.58 points, marking a historic record. Tech giants such as Tesla, Google, and Amazon continued to rally, with Tesla jumping over 6% to a new all-time high. This surge added $19.2 billion to Elon Musk’s net worth in a single day. According to Bloomberg’s Billionaires Index, Musk’s net worth reached $474 billion as of Monday’s close, representing a $245 billion increase since the start of the year.
Broadcom continued its dramatic rise, following a 24% jump on Friday with an additional gain of over 11% on Monday. This two-day rally brought its cumulative increase to 38%. Analysts at Bank of America included Broadcom in their “Top Chip Picks for 2025,” listing it alongside Nvidia and Marvell Technology as part of the “AI Chip Big Three” in the US semiconductor sector.
The US stock market appears to be returning to a tech-driven rally. Joe Mazzola, Chief Trading and Derivatives Strategist at Charles Schwab, commented, “We’re seeing a pullback in market breadth, with gains becoming concentrated in a small group of stocks. I’m not sure how long this trend will last, but I expect it to continue at least until the end of the year.”
Market Highlights
- Major Tech Stocks: Most large-cap tech stocks gained on Monday. Tesla rose over 6%, Google gained more than 3%, while Intel and Amazon climbed over 2%. Apple edged up over 1%, while Netflix and Meta posted modest gains. Nvidia, however, bucked the trend, declining 1.7% after dropping more than 2% intraday. It’s now down 10% from its November all-time high, officially entering a correction.
- Semiconductors: The chip sector showed mixed results. Broadcom rose over 11% to a new record high, while AMD dropped more than 8% after being removed from the Nasdaq 100 Index.
- Chinese ADRs: US-listed Chinese stocks declined broadly, with the Nasdaq Golden Dragon China Index falling 2.19%. iQIYI plunged about 8%, while Full Truck Alliance, Tencent Music, and Kanzhun dropped over 5%. Bilibili fell more than 3%, and Baidu, Pinduoduo, and KE Holdings declined over 2%. On the upside, Ctrip and XPeng saw small gains.
Technical Analysis
Market Closing Prices (US)
- Dow Jones: Down 110.58 points (-0.25%) to 43,717.48
- Nasdaq: Up 247.17 points (+1.24%) to 20,173.89
- S&P 500: Up 22.99 points (+0.38%) to 6,074.08
Hong Kong Markets
Hong Kong’s three major indexes all closed lower on Monday. Tech stocks saw broad declines, with Alibaba, JD.com, and Xiaomi falling over 1%, while Meituan and Baidu both dropped nearly 1%.
In contrast, some auto stocks saw gains, with BYD climbing nearly 2%. Internet healthcare stocks were among the worst performers, with Ping An Good Doctor plunging over 12%.
SaaS concept stocks also struggled, as Mobvista fell more than 8%. Weakness was observed in film, construction materials, and pharmaceutical outsourcing sectors.
Alibaba’s stock declined over 1% following reports that the company plans to sell its stake in Intime Retail. The company later confirmed the news, announcing it had reached an agreement with a consortium comprising Youngor Group and Intime’s management team to sell 100% of its stake in Intime for approximately 7.4 billion yuan. The transaction is expected to result in a loss of around 9.3 billion yuan for Alibaba.
Technical Analysis
Market Closing Prices (Hong Kong)
- Hang Seng Index: Down 0.39% to 19,718.56
- Hang Seng Tech Index: Down 0.49% to 4,392.96
- China Enterprises Index: Down 0.30% to 7,110.99
A50 Index (China Mainland)
China’s A-shares had a mixed performance during Monday’s morning session. By midday, total market turnover stood at 992.5 billion yuan, 85.5 billion yuan lower than the previous trading day. More than 4,700 individual stocks were in negative territory.
Sector Highlights:
- Top Gainers: Sectors such as football concepts, auto manufacturing, and Co-Packaged Optics (CPO) led the gains. Key performers included Aoto Electronics, Shuangxiang Shares, and Conson Grass, all of which hit the daily limit-up. AI hardware stocks also posted strong performances, with Mingyang Circuit, Raisecom, and ZTE hitting limit-up levels.
- Auto Stocks: Auto stocks rebounded, with Ankai Bus hitting the limit-up, while Yutong Bus and Great Wall Motor also saw strong gains.
- Education Stocks: Education stocks were among the biggest losers, with Kevin Education and Broadcom Shares hitting the limit-down, while Allwin Education fell close to 10%.
- High-Flying Stocks: Stocks that had previously seen sharp gains experienced a significant pullback. Former leading sectors like consumer goods, AI applications, and robotics were hit hard. Over 50 stocks, including Changbai Mountain, Yiming Food, Huifa Foods, Dalian Saint Year, Construction Industry, and Aofei Entertainment, hit their limit-down levels.
Technical Analysis
Market Closing Prices (A50 Mainland)
- Shanghai Composite: Down 0.57% to 3,366.89
- Shenzhen Component: Down 0.12% to 10,561.20
- ChiNext Index: Up 0.22% to 2,206.42
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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.
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.
