On Monday, US stock market closed higher, with cyclical and small-cap stocks leading the charge. The Dow Jones Industrial Average rose over 440 points, hitting a new all-time high, while Tesla and Nvidia saw significant declines.
This week, US trading hours will be shortened due to the Thanksgiving holiday, with investors focusing on the PCE inflation indicator and the release of the Federal Reserve’s November meeting minutes.
Markets are also assessing the implications of former President Trump’s nomination of David Basente as the next US Treasury Secretary. Following this news, the “Trump Trade” saw a reversal, with US Treasury yields climbing, the dollar weakening, and large-cap stocks rising, although small-cap stocks gave back some gains.
In his first interview since his nomination, Basente emphasized that his top priority would be to fulfill Trump’s tax cut promises. Many investors expect that Basente will help mitigate the impact of Trump’s more aggressive trade and economic policies.
Attention remains on the release of the Federal Reserve’s November meeting minutes, due early Wednesday morning (Beijing time), as market participants seek further clues regarding the Fed’s path to rate cuts.
On Monday, Minneapolis Fed President Neel Kashkari, one of the Fed’s more hawkish members, suggested that a rate cut could be a reasonable consideration at the December meeting.
Meanwhile, 2025 voter and Chicago Fed President Austan Goolsbee reiterated that interest rates are expected to remain lower in 2025, cautioning against placing too much emphasis on any one month’s inflation data.
Stock Highlights:
- Tesla dropped nearly 4% following a bearish report from UBS. Analysts cited that Tesla’s recent stock surge was driven more by market sentiment than improvements in the company’s fundamentals.
Reports also emerged that, should Trump win the presidency again, California could potentially reinstate electric vehicle purchase subsidies, excluding Tesla’s best-selling models from eligibility.
- Warren Buffett made headlines by announcing the donation of $1.1 billion worth of Berkshire Hathaway stock through the four family foundations managed by his children.
In his letter, Buffett stated that since pledging in 2006 to give away most of his wealth, he had donated 56.6% of his Berkshire shares.
US Stock
Fundamental Analysis:
Most large-cap tech stocks saw gains, with Amazon up over 2%, Apple, Meta, and Google each rising over 1%. However, Nvidia dropped over 4%, Netflix fell more than 3%, and Tesla declined nearly 4%, partly due to a proposal in California to exclude Tesla from a new electric vehicle subsidy.
Chip and energy stocks advanced, with Advanced Micro Devices up more than 15%, Prague Energy gaining over 14%, and GlobalFoundries increasing by over 5%.
The precious metals sector was mostly lower, with Coeur Mining, Harmony Gold, and Anglogold all down by more than 3%.
The Nasdaq Golden Dragon Index, which tracks Chinese stocks, rose by 0.44%. Major Chinese ADRs saw mixed results, with iQIYI gaining over 6%, while Baidu, Alibaba, Youdao, and New Oriental all rose more than 2%.
However, Ke Holdings fell over 5%, NIO dropped more than 3%, and XPeng Motors declined over 2%.
Technical Analysis:
Market Trends:
- Dow gained 440.06 points, or 0.99%, closing at 44,736.57
- Nasdaq rose 51.18 points, or 0.27%, closing at 19,054.84
- S&P 500 increased 18.03 points, or 0.30%, to close at 5,987.37
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s three major indices opened lower but rebounded throughout the day. Tech stocks were mostly higher, with Baidu up nearly 6%, Meituan gaining over 3%, and Alibaba and JD.com each rising more than 2%.
However, Xiaomi fell over 4%, while restaurant stocks saw strong gains, with Helen’s up more than 8%. Property stocks saw small gains, with Sunac China up over 3%, while solar stocks strengthened, with GCL-Poly rising more than 5%.
Automobile stocks generally underperformed, with NIO falling over 4%, and lithium stocks also saw declines, with Ganfeng Lithium dropping nearly 5%.
Solar stocks strengthened across the board. GCL-Poly Energy rose more than 5% after a report from Bank of China Securities highlighted that the Ministry of Industry and Information Technology had released revised standards for the photovoltaic manufacturing industry, aimed at boosting the industry’s transformation and upgrading.
The firm noted that with the industry shifting towards a more rational competitive environment, production cuts in silicon materials are expected, and the price of photovoltaic cells and modules has already risen. This, combined with policy support, could help stabilize the industry’s fundamentals.
Technical Analysis:
Technical Analysis:
- Hang Seng Index rose 0.49%, closing at 19,244.63
- Hang Seng Tech Index increased 0.43%, closing at 4,253.35
- Hang Seng China Enterprises Index gained 0.41%, closing at 6,890.28
FTSE China A50 Index
Fundamental Analysis:
A-shares saw a mixed performance in early trading. By midday, the total market turnover had reached 860.4 billion yuan, a decrease of 88.5 billion yuan from the previous day. Over 2,600 stocks were in the green.
In sector performance, IP economy, food and beverage, brain-machine interfaces, film industry, and traditional Chinese medicine stocks led the way, while solid-state batteries, Huawei smartphones, humanoid robots, and gas stocks saw losses.
The IP economy concept stocks surged, with Chuangyuan Shares, Deyi Culture, and Huali Technology among the top performers, all hitting daily limits. Food and beverage stocks saw strong gains, with Zhu Laoliu rising over 20%.
Solid-state battery stocks were notably weaker, with Aoke Shares and Daoshi Technology down over 10%, while Hua Feng Shares and Zhongyuan New Materials also fell sharply.
Technical Analysis:
Market Trends:
- Shanghai Composite Index rose 0.43%, closing at 3,277.82
- Shenzhen Component Index gained 0.07%, closing at 10,427.67
- ChiNext Index dropped 0.16%, closing at 2,171.60
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Disclaimer
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