Market Analysis on January 29th

Today is January 29th. Chip giants drag down the S&P 500 and Nasdaq, ending a five-day winning streak, while the Dow rises during the session, setting consecutive record highs for three weeks. The technology sector leads the decline in the S&P; chip indexes have fallen for two consecutive days to a one-week low, with Intel's decline exceeding 10%, marking the largest drop in over two years, while AMD and Nvidia are down nearly 2% and nearly 1% respectively; Google and Meta continue to hit new record highs at close; after a slight rebound, Tesla's week-to-date decline is nearly 14%; conversely, Netflix rose 18% during the earnings week. The pan-European indices hit a two-year high with a weekly increase of over 3%; LVMH rose nearly 13% after earnings, while ASML rose 16% during the earnings week.

According to Nick Timiraos of the 'New Federal Reserve News Agency', the cooling of inflation has opened the door to interest rate cuts this year, and there has been a change in the Federal Reserve's policy statement. Despite the U.S. GDP exceeding expectations, there is still a major underlying issue. For every $1 increase in U.S. GDP in the fourth quarter, there is a $1.55 deficit and over $2.50 in debt. Bitcoin stabilized near $0.04 million after stopping its decline, and the outflow of funds from the world's largest Bitcoin ETF slowed. Analysts believe that profit-taking behavior has largely been completed, thereby limiting the downside space for Bitcoin. After the U.S. PCE data was released, the yield on the 10-year U.S. Treasury bond rose, reaching nearly a five-week high. The U.S. dollar index continues to decline, moving away from its six-week high, but has shown weekly gains since the beginning of the year.

Gold fell after reaching a high, declining for two consecutive weeks. Bitcoin rose over $2000 during the session, hovering around $0.042 million, hitting a high within the week. Crude oil once again hit a near two-month high, with a weekly increase of over 6%; U.S. oil achieved its largest weekly gain in nearly four months, while Brent crude recorded its second largest weekly gain since the conflict in Libya.

In the Chinese market, Chinese concept stocks have fallen for two consecutive days, but still accumulated nearly 4% gains this week. Nio Inc. rose by over 1%, while New Oriental dropped by over 1%, with an 11% cumulative increase during the financial report week. Offshore renminbi dropped by over a hundred points intraday, breaking through the 7.19 mark, but saw its first weekly gain after the beginning of the year. The Shanghai Composite Index has risen for four consecutive days, with a weekly increase of 0.14%, while the Hengkang Index fell by over 3%. The China Securities Regulatory Commission further strengthens the supervision of margin trading business, fully suspending the lending of restricted shares, resolutely cracking down on illegal activities of reducing holdings through margin trading, and meanwhile, the Shanghai and Shenzhen Stock Exchanges have issued notices to suspend strategic investors from lending out the allocated stocks within the committed holding period.

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