On Thursday, US stock market kicked off the New Year with losses. The Dow Jones fell for the fourth consecutive session, while the Nasdaq and S&P 500 marked their fifth straight day of declines. Tesla dropped sharply by 6% after reporting weaker-than-expected delivery numbers. Meanwhile, US initial jobless claims for last week came in lower than anticipated.
The weak performance at the end of 2024 and the start of 2025 has dampened hopes for the traditional “Santa Rally.” Last year, the S&P 500 rose 23%, with over half of the gains driven by tech giants. Analysts suggest that as earnings growth slows, these tech leaders may struggle to maintain their dominant market position in 2025.
Lisa Shalett, Chief Investment Officer at Morgan Stanley Wealth Management, commented that 2025 could become a “show-me” year for corporate profits. She noted that the seven tech giants responsible for much of last year’s gains are now at risk of losing their leadership status, warning investors against relying on them to drive market performance this year.
US Stock Market Highlights
Tesla
Tesla’s 2024 delivery numbers fell short of expectations, leading to a more than 6% drop in its stock price.
- 2024 Deliveries: 1.7892 million vehicles, down 1.1% year-on-year, marking the first annual decline since 2015.
- Production: 1.7734 million vehicles.
- Market Impact: Deliveries missed analysts’ consensus estimate of 1.8 million vehicles.
Unity Software
Unity Software surged over 9%, briefly rising 16% intraday, on heavy trading volume following a $29.7 million block trade of 1.32 million shares on Tuesday night. The company gained attention after a post by retail trading influencer “Roaring Kitty” hinted at Unity’s potential.
Major Tech Stocks
Tech stocks were mixed:
- Decliners: Tesla fell more than 6%, and Apple dropped 2.62%—its worst single-day decline since October. Microsoft and Netflix saw slight losses.
- Gainers: NVIDIA rose 3%, Meta gained over 2%, while Google, Amazon, and Intel posted modest gains.
Quantum Tech Stocks
- Rigetti Computing (RGTI): Soared 31.06%.
- D-Wave Quantum (QBTS): Gained over 14%.
Chinese ADRs
Chinese ADRs had mixed performances, with the Nasdaq Golden Dragon China Index falling 1.51%.
- Decliners: Bilibili and Trip.com dropped over 5%, while Zeekr and New Oriental fell over 4%. JD.com, Vipshop, and Weibo lost more than 2%, and Baidu and XPeng dropped over 1%.
- Gainers: NIO rose more than 4%, and Kingsoft Cloud gained over 2%.
Technical Analysis of US Market
Market Recap
- Dow Jones: -151.95 points (-0.36%) to 42,392.27.
- Nasdaq: -30.00 points (-0.16%) to 19,280.79.
- S&P 500: -13.08 points (-0.22%) to 5,868.55.
Hong Kong Market Overview
Hong Kong stocks opened higher and extended gains throughout the day.
Sector Highlights
- Tech Stocks: Xiaomi surged over 5%, while Meituan and Alibaba gained more than 2%.
- Mobile Industry: Digital product supply chains rose after China’s National Development and Reform Commission announced subsidies for smartphones and other devices. AAC Technologies climbed over 5%.
- Gold Stocks: Lingbao Gold extended its rally, rising over 6%.
Notable Movers
- MINISO: Jumped over 11%, buoyed by news of an upcoming collaboration with the popular video game “Black Myth: Wukong,” set for release in 2025.
Technical Analysis of Hong Kong Market
Market Recap
- Hang Seng Index: +0.87% to 19,794.03.
- Hang Seng Tech Index: +1.37% to 4,417.13.
- Hang Seng China Enterprises Index: +1.09% to 7,167.77.
A50 & China A-Shares Overview
China’s A-share markets opened lower, with all three major indices declining by midday. Total turnover stood at RMB 753.4 billion, down RMB 28.9 billion from the previous session, with over 3,900 stocks losing ground.
Sector Highlights
- Top Gainers: Non-ferrous metals, AI glasses, coal mining, and biotech led gains.
- Top Decliners: Retail, tourism, and e-commerce lagged.
Market Performers
- Retail: Consumer stocks faced significant pullbacks. Stocks like Hangzhou Jiebai, Baida Group, and Maoye Commercial hit their daily limit-down.
- Non-Ferrous Metals: Actively traded, with Yongmao Tai and North Copper hitting limit-up. Sichuan Gold and Yunlu Aluminum posted solid gains.
- New Listings: Newly listed stocks performed strongly, with N-Tianhe surging over 700% intraday, triggering trading halts.
- Consumer Electronics: The sector rallied mid-session on news catalysts. Victory Precision hit its limit-up, while Rayscape Technology and Xianying Technology posted strong gains.
Technical Analysis of China Market
Market Recap
- Shanghai Composite Index (SSE): -0.46% to 3,247.54.
- Shenzhen Component Index (SZSE): -0.23% to 10,064.38.
- ChiNext (Growth Enterprise Market Index): -0.28% to 2,054.75.
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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.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
