Daily Investment Strategy
Hang Seng Index rose 37 points on Tuesday
The Hang Seng Index closed at 17,234 points for the day, rose 37 points or 0.2%. The Hang Seng Technology Index reported at 3,450 points, rose 13 points or 0.4%. The HSCEI Index rose 23 points, or 0.4%, to 6,026 points. The market turnover was HK$107.3 billion.
S&P 500 shrugs off declines in energy, financial stocks as tech stocks shine
The S&P 500 ended higher on Tuesday, as gains in technology stocks helped offset weakness in the energy and financial sectors ahead of a key U.S. inflation report. The S&P 500 rose for a second straight session on Tuesday as Wall Street tried to find its footing during a tumultuous September. The index rose 0.45% to close at 5,495.52 points; the Nasdaq rose 0.84% to close at 17,025.88 points. The Dow Jones Industrial Average fell 92.63 points, or 0.23%, to close at 40,736.96. Nvidia closed up 1.5%, boosting the S&P 500 and the tech-heavy Nasdaq. AMD and Microsoft shares were also higher. On the earnings front, cloud platform company Oracle reported better-than-expected first-quarter earnings and announced a partnership with Amazon Web Services to provide database services, sending its shares soaring more than 11%. Bank stocks weighed on the overall market. JPMorgan shares fell more than 5% after the company made cautious comments about 2025 net interest income at an industry conference. JPMorgan Chase was also the biggest loser among the 30 Dow components. Energy stocks fell 2%, leading the broader market lower, dragged down by a more than 4% drop in oil prices. Concerns about oversupply are growing as the demand outlook dims. OPEC said it now expects demand to increase by about 2 million barrels per day this year, down from the 2.1 million barrels per day expected in August. This is the second month in a row that the organization has lowered its forecast.
Keep an eye on inflation data
Traders are keeping a close eye on two important economic reports that could serve as the next catalyst for stocks. The CPI for August will be released on Wednesday, and the PPI will be released on Thursday. Investors are betting that a widely expected rate cut by the Federal Reserve at its Sept. 17-18 meeting could help ease concerns about economic weakness.
Hong Kong Stock Connect had a net inflow of HK9.28bn on Tuesday of which Alibaba (9988) had the largest net inflow, reaching HK$8.47bn; followed by CCB (939). HKEX (388) recorded the largest net outflow at HK$0.76bn, followed by Meituan (3690).
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