On Wednesday, all three major US stocks indices closed lower, with tech stocks leading the decline. Nvidia fell over 6%, and Tesla dropped 4%. Fresh economic data pointed to sticky inflation, driving US Treasury yields higher and raising doubts about the Federal Reserve’s ability to cut rates later this year.
The US Labor Department’s November Job Openings and Labor Turnover Survey (JOLTs) revealed a six-month high in job openings, bolstered by the services sector, while layoffs remained steady, highlighting a resilient labor market.
Key Data Highlights
- Job Openings: Rose to 8.1 million in November, up from 7.83 million in October (revised). Analysts had expected 7.74 million.
Upcoming Data
The most critical economic release this week is Friday’s December non-farm payrolls report. Analysts expect hiring to slow, reflecting a moderating but still healthy labor market as the year ends
Experts believe the jobs report is unlikely to change the Fed’s outlook, as officials anticipate slowing rate cuts amid continued economic growth and easing inflation.
US Stocks Market Overview
Sector Performance
Large-cap tech stocks fell across the board:
- Nvidia: Dropped over 6%, its largest single-day decline since September 3, 2024, following product announcements that failed to meet investors’ short-term expectations.
- Tesla: Declined over 4%.
- Amazon: Fell more than 2%.
Healthcare Stocks
Pharma stocks outperformed:
- Moderna: Gained over 11%.
- Novavax: Rose more than 10%.
Chinese ADRs
Performance was mixed:
- Gainers: XPeng climbed nearly 10%, MINISO rose over 5%, Bilibili gained over 2%, while Pinduoduo and iQIYI rose over 1%.
- Decliners: NIO fell over 4%, and Alibaba declined more than 1%.
Technical Analysis of US Market
Market Recap
- Dow Jones: -178.2 points (-0.42%) to 42,528.36.
- Nasdaq: -375.30 points (-1.89%) to 19,489.68.
- S&P 500: -66.35 points (-1.11%) to 5,909.03.
Hong Kong Market Overview
Hong Kong stocks opened lower and extended losses throughout the session.
Sector Performance
- Tech Stocks: Broadly declined. Xiaomi fell over 4%, Meituan dropped over 3%, and Tencent slipped nearly 3%.
- Apple Suppliers: Shares of component suppliers tumbled, with Sunny Optical Technology losing nearly 8%.
- Coal Stocks: China Shenhua Energy dropped nearly 5%.
- Semiconductors: SMIC fell over 4%.
- Real Estate: Developers slumped, with Sunac China down more than 9%.
Real Estate Highlights
Sunac China’s sharp decline followed data from the China Index Academy showing a 30.6% year-over-year drop in total sales by the top 100 property developers in 2024, totaling RMB 4.35 trillion. While the decline narrowed by 2.3 percentage points from the prior month, Ping An Securities noted that the property market’s volume and price adjustments in 2024 are likely to persist into 2025, weighing on nationwide investments and sales.
Technical Analysis of Hong Kong Market
Market Recap
- Hang Seng Index: -1.59% to 19,137.88.
- Hang Seng Tech Index: -2.22% to 4,258.18.
- Hang Seng China Enterprises Index: -1.54% to 6,941.40.
A50 & China A-Share Market Overview
Mainland Chinese stocks fell across the board, with all three major indices declining. Total turnover across the Shanghai, Shenzhen, and Beijing exchanges reached RMB 713.93 billion, with 4,921 stocks declining, 505 advancing, and 27 remaining flat.
Sector Highlights
- Top Gainers:
- Energy-Related: Electrode foil, oil fields, natural gas fields, and shale oil and gas.
- Exports: Textiles, apparel, and LNG sectors gained.
- Top Decliners:
- Tech & Manufacturing: Microscopes, carbon nanotubes, consumer electronics automation, and LED backlights.
- New Energy: Proton exchange membranes and storage-related sectors.
Technical Analysis of China Market
Market Recap
- Shanghai Composite Index (SSE): -1.46% to 3,182.48.
- Shenzhen Component Index (SZSE): -2.38% to 9,760.85.
- ChiNext (Growth Enterprise Market Index): -2.77% to 1,972.24.
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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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