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Market Divergence: Tech Gains, Sector Struggles, and Key Levels to Watch

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Trader Ethan wrote a column · Dec 2, 2024 21:26
Index Analysis
Dow Jones Industrial Average: The index rose by 0.42% to close at 44,910.65, signaling modest optimism amid market fluctuations. The blue-chip stocks saw broad-based buying, supported by steady economic indicators. $Dow Jones Industrial Average (.DJI.US)$
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Nasdaq Composite: Gaining 0.83% to close at 19,218.17, the tech-heavy index outperformed as AI and semiconductor stocks continued to attract investor interest. Robust sectoral growth offset lingering concerns over valuations. $Nasdaq Composite Index (.IXIC.US)$
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S&P 500: In contrast, the index declined by 0.56% to settle at 6,032.38, reflecting sectoral divergence. Weakness in energy and healthcare stocks dragged the broader market, while growth sectors remained relatively resilient. $S&P 500 Index (.SPX.US)$
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Outlook: Markets are likely to remain volatile, driven by upcoming macroeconomic data releases and Federal Reserve commentary. If employment and inflation data align with expectations, equities may find support. However, mixed performances across indices highlight the importance of sector-specific strategies.


Stock Highlights
BABA
Price: $87.37 (+0.90%)
Alibaba is benefiting from growing investor confidence in its Southeast Asian expansion, particularly through Lazada. Recent data shows significant transaction growth in Vietnam and Indonesia, fueling positive sentiment. The stock remains range-bound between $80 and $90, but a breakthrough above $90 could push it toward $95in the near term. $Alibaba (BABA.US)$
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JD
Price: $37.38 (+0.51%)
JD.com’s bounce back from the critical $35 support level reinforces its upward momentum, nearing the $38 target. Management's focus on enhancing logistics networks and supply chain efficiency in Tier-1 cities adds to its recovery narrative. Short-term prospects remain bullish, supported by improving profitability. $JD.com (JD.US)$
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PDD
Price: $96.56 (-2.27%)
The stock has breached its psychological $100 support and is testing the critical $95 level. Concerns about international business profitability are weighing on sentiment. However, the upcoming "Double 12" sales figures could act as a catalyst for recovery. Strong data could propel the stock back above $100 swiftly. $PDD Holdings (PDD.US)$
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BIDU
Price: $85.05 (+0.27%)
Baidu has firmly established support at $85, in line with our expectations. This consolidation sets the stage for a potential rally toward the $90 target. The company’s advancements in autonomous driving and AI, including its Apollo platform partnerships and Ernie Botcommercialization, continue to bolster its long-term growth narrative. $Baidu (BIDU.US)$
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NVDA
Price: $138.25 (+2.15%)
NVIDIA remains a key player in the AI revolution, with high demand for its chips. While price action has been range-bound under $140 due to market volatility, collaborations with automakers to integrate its chips into intelligent driving systems strengthen its leadership position. Investors should monitor upcoming order updates and earnings guidance. $NVIDIA (NVDA.US)$
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TSLA
Price: $345.16 (+3.69%)
Tesla’s aggressive pricing strategy has paid off, with November orders reaching a quarterly high. Despite concerns over profit margins, the stock is approaching a critical resistance at $350. A breakout above this level could unlock further upside. Additionally, innovation in battery technology presents a promising growth driver. $Tesla (TSLA.US)$
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Summary and Outlook
The divergence between Chinese tech stocks and broader technology sectors persists. While JD and BABAdemonstrate steady growth, PDD faces near-term pressure at critical support levels. Looking ahead, market sentiment will hinge on macroeconomic updates, particularly the Fed’s remarks and non-farm payroll data. Stay alert for potential opportunities as volatility unfolds.


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