January 5 Market Analysis

Today is January 5th. The NASDAQ fell for five consecutive days last night, and the S&P 500 index also experienced four consecutive declines, all of which hit new lows in three weeks, while the Dow was barely rebounding. Apple was once again downgraded by the agency this week, with a cumulative drop of more than 5%. Microsoft introduced artificial intelligence keys in PC keyboards, the first change since 1994. Microsoft sees 2024 as the “Year of AI PCs” and is committed to seamlessly integrating artificial intelligence into Windows systems and advancing it comprehensively from systems, chips to hardware. Despite the poor overall performance of chip stocks, Nvidia showed a certain rebound. On the same day, US stocks showed that the Dow rose slightly by 0.03%, the S&P 500 index fell 0.34%, and the Nasdaq index fell 0.56%.

In terms of economic data, the number of “small non-farmers” ADP employment in the US increased by 164,000 in December, far exceeding expectations, but wage growth hit a new low in more than two years. Markit's services sector and comprehensive PMI both hit new highs since July last year. However, the strong performance of “small non-farmers” data reduced market expectations for interest rate cuts. After the data was released, US bond yields once rose by 10 basis points, and ten-year yields rose above 4.0% in the intraday period for two consecutive days. The US dollar index rose in the short term, but eventually fell after four consecutive gains, which is a bit far from its nearly three-week high. In Europe, inflation in Germany and France is heating up, European bond yields have risen by more than 10 basis points in the intraday period, while the yen has fallen by more than 1% in the past few days.

In the Chinese market, during the US stock trading period, the performance of the China General Stock Index was weak. Faraday rose more than 10% at the beginning of the session and then fell by more than 2%. Station B fell by more than 3%, while New Oriental rose by more than 5%. The offshore renminbi fell more than 200 points in the intraday period and once again fell below 7.17, hitting a three-week low. Among A-shares, the high-dividend camp showed a strong trend as a whole. The ice and snow tourism concept was sought after, core asset performance was weak, while the KEEP stock price in Hong Kong stocks hit a new low.

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