US Markets Highlights
On Monday, US markets opened lower but rebounded to close modestly higher. The S&P 500 logged its sixth straight day of gains, as retail investors stepped in to buy the dip, helping the market recover from Moody’s downgrade of the US credit rating.
At one point, the S&P 500 fell by 1% at the open following the downgrade. But retail money flowed in aggressively, reversing the downturn. By midday, net retail inflows hit a record-breaking $4.1 billion, accounting for 36% of total trading volume—the highest ever, surpassing the previous record in late April.
According to JPMorgan, retail investors poured $2.5 billion into individual stocks and $1.5 billion into ETFs. Top inflow targets included Tesla ($675 million) and Palantir ($439 million), while Nvidia saw continued outflows.
Several Fed officials made public remarks during the day. Atlanta Fed President Raphael Bostic stated he sees only one rate cut this year, given persistent inflation concerns. Vice Chair Jefferson and New York Fed President Williams echoed cautious tones, saying policymakers are unlikely to lower rates before September due to economic uncertainty.
Sector Movers:
- Top gainers: Pharmaceuticals and precious metals.
Notable movers: Novavax +15%, UnitedHealth +8%, Moderna +6%, Newmont Goldcorp +5%, Barrick Gold, Gilead, Biogen all +3%+ - Lagging sectors: Solar, automotive, and energy.
First Solar -7%, Murphy Oil -2%
Chinese ADRs:
Most Chinese tech stocks traded lower.
- Nasdaq Golden Dragon Index: -0.17%
- Bilibili -5%, XPeng -3%+, Li Auto, NIO -1%+
- Kingsoft Cloud +2%
- Pinduoduo, JD.com: slight gains under 1%
US Market – Technical Analysis
US Markets Close
- Dow Jones +137.33 pts (+0.32%) → 42,792.07
- Nasdaq +4.36 pts (+0.02%) → 19,215.46
- S&P 500 +5.22 pts (+0.09%) → 5,963.60
Hong Kong Markets Highlights
All three major Hong Kong indexes opened higher and extended gains throughout the session.
Tech stocks led the charge, with Alibaba and JD.com each up over 2%.
Biopharma was strong in early trading—3SBio soared over 35%.
Robotics-related stocks also rose, with First Port Group up more than 3%.
CATL Skyrockets on Debut:
CATL (Contemporary Amperex Technology) surged nearly 17% in its first day of trading in Hong Kong. Already listed on the Shenzhen Growth Enterprise Market since 2018, CATL is now the first Chinese battery maker listed on both A-shares and H-shares. The IPO raised HK$35.3 billion, making it the largest global listing so far this year.
Xiaomi Gains on Chip News:
Xiaomi-W rose nearly 4%. On May 20, Chairman Lei Jun announced via Weibo that its in-house 3nm flagship chip, “Xuanjie O1,” has entered mass production. Two new flagship products using the chip will launch soon:
- Xiaomi 15s Pro (smartphone)
- Xiaomi Pad 7 Ultra (OLED tablet)
Hong Kong Market – Technical Analysis
Hong Kong Market Close
- Hang Seng Index +1.29% → 23,634.21
- Hang Seng Tech Index +1.32% → 5,324.18
- China Enterprises Index +1.30% → 8,570.81
A-Share Markets (Midday) Highlights
China’s major indexes opened higher across the board.
By midday, total market turnover reached ¥752.2 billion, up ¥23.9 billion from the previous session. More than 3,600 stocks advanced.
Leading Sectors:
- Beauty & personal care, pet economy, biotech, and IP licensing
- Top gainers: Reliable Co., Tenyuan Pet, Chuangyuan, Zuming, Yuanfei Pet (limit up)
- IP concept stocks: Mankalon, Aofei Entertainment, Shifeng Culture (limit up)
- Biotech rebound: Yipinhong, 3SBio, Huahai Pharma, Yatai Group (limit up)
- M&A activity also surged: Zongyi, Tianqi Mould, Datang Telecom, Baobian Electric hit daily limits
Weak Sectors:
- Ports and shipping, chemical fiber
- Phoenix Shipping, Ningbo Ocean Shipping both hit limit down
China Market – Technical Analysis
China Market Midday Snapshot
- Shanghai Composite +0.38% → 3,380.45
- Shenzhen Component +0.79% → 10,251.90
- ChiNext Index +1.04% → 2,053.99
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