On Wednesday, the U.S. stock market displayed a complex performance, with a distinct divergence in Chinese stocks. The Nasdaq Golden Dragon China Index (HXC) fell by 0.67%, reflecting limited overall performance. Meanwhile, the Federal Reserve's meeting minutes sparked market attention towards future monetary policies, as global investors focused on inflation pressures and economic outlook.
Divergence in Chinese Stocks Performance
Among the rising sectors, GDS Holdings led the popular Chinese stocks with an impressive increase of 8.99%. NetEase rose by 2.85% with steady performance, Huazhu Hotels Group up by 1.81%, while Vipshop and Tencent Music increased by 1.08% and 0.92% respectively. Additionally, companies like Chunghwa Telecom, New Oriental, and UMC also saw minor gains.
In contrast, TSMC fell by 2.03%, leading declines in tech stocks. The entire electric vehicle sector was under pressure, with NIO dropping 4.21%, XPeng plummeting 5.60%, and Li Auto also decreasing by 2.93%. Bilibili fell by 3.67%, while KE Holdings and Futu Holdings dropped by 2.18% and 2.69% respectively.
Mixed Performance of Major U.S. Indices
The three major U.S. indices showed mixed performance. The Dow Jones Industrial Average rose by 106.84 points, or 0.25%, to 42635.20 points; the S&P 500 slightly increased by 0.16%, to 5918.24 points; while the Nasdaq Composite Index fell by 10.80 points, or 0.06%, closing at 19478.88 points.
The Federal Reserve's meeting minutes became the focus of market attention. The minutes revealed concerns among Fed officials about upward inflation risks and mentioned the necessity to slow down rate cuts. This signal has caused the market to maintain a cautious attitude towards future monetary policies, with traders reassessing potential Fed policy adjustments.
Multiple Factors Influencing Market Volatility
This week's market performance reflects the combined impact of macroeconomic factors, policy signals, and industry dynamics. U.S. economic data remains strong, yet inflationary pressures persist, leaving investors in a wait-and-see approach regarding interest rate outlooks.
Analysts noted that the overall performance of Chinese stocks continues to be driven by industry and individual stock factors, with the uncertainty of the macro environment and policies posing potential impacts on market sentiment. In the short term, investors should pay attention to inflation data and the Fed's policy direction for further market guidance.
Looking ahead, the market may continue to oscillate around economic recovery and inflation pressures, with the performance of Chinese stocks potentially further diverging with changes in the industry and international market trends.
