Daily Investment Strategy
Hang Seng Index rose 255 points on Wednesday
The Hang Seng Index rose 255 points or 1.6% to 16,503 on Wednesday. HSTECH rose 86 points or 2.7% to 3,351 and HSCEI rose 123 points or 2.2% to 5,642. Daily market turnover was HK$122.4bn.
Dow closes higher as buying comes in
The minutes of the January meeting released by the Federal Reserve showed that Fed members were worried about cutting interest rates too early. Investors temporarily ignored the Fed's hawkishness and still entered the market, causing the Dow Jones Industrial Average to close higher on Wednesday. The Dow Jones Industrial Average rose 47 points, or 0.1%, the S&P 500 rose 0.1%, and the Nasdaq fell 0.3%, with the latter falling more than 1% intraday. Nvidia on Wednesday reported better-than-expected forecasts and fourth-quarter results as surging demand for chips led by artificial intelligence helped ease the hit from the U.S. chip export ban to China. After the report was released, Nvidia's stock price rose more than 7% after hours. Shares of cybersecurity company Palo Alto Networks fell more than 28% after the company lowered its full-year forecast as it changed strategy and increased its free product offerings. Telehealth provider Teladoc, best known for its BetterHelp therapy platform, fell 24% as its forecasts for the coming months were largely pessimistic and it warned that the market for virtual-healthcare services was reaching saturation. SolarEdge Technologies shares fell 12% on weak first-quarter revenue guidance and expectations that excess inventory will continue to weigh on margins. Meanwhile, energy stocks led the market higher, with oil prices closing higher as escalating geopolitical tensions in the Middle East could disrupt supply, providing continued support for oil prices.
Fed meeting minutes show members saw no urgency to cut interest rates
Minutes of the Federal Reserve's January meeting released on Wednesday showed that Fed policymakers did not express an urgent need to turn to interest rate cuts as concerns about "upside risks" to inflation began to emerge. Officials noted that rate hikes may be over, while saying they wanted to see more before starting to ease policy. Members cited the "risk of moving too quickly" on cutting interest rates.
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