Daily Investment Strategy
Hang Seng Index rose 45 points on Tuesday
The Hang Seng Index rose 45 points or 0.3% to 18,072 on Tuesday. HSTECH fell 22 points or 0.6% to 3,655 and HSCEI rose 23 points or 0.4% to 6,464. Daily market turnover was HK$93.7bn.
NVIDIA rebound to drive NASDAQ close high
The S&P 500 and Nasdaq ended a three-day losing streak on Tuesday as Nvidia shares rebounded.Shares of chip-making giant Nvidia rebounded on Tuesday, sending the S&P 500 and Nasdaq higher after a sell-off a day earlier. The S&P 500 rose 0.39% to close at 5,469.30 points, and the Nasdaq rose 1.26% to close at 17,717.65 points. Both indexes ended a three-day losing streak. The Dow Jones Industrial Average fell 299.05 points, or 0.76%, to close at 39,112.16 points.
Nvidia shares rose about 6.7%. The stock fell more than 6% in the last trading day, its biggest one-day drop since a 10% drop on April 19. Several big tech stocks also rebounded after falling on Monday. Meta platform and Alphabet both rose more than 2%. SolarEdge Technologies shares fell 20.6% after the company announced plans to issue $300 million in new debt. Novo Nordisk shares rose 3.3% after the company won approval from Chinese regulators for its blockbuster weight-loss drug Wegovy. Volkswagen has announced a major investment plan in Rivian Automotive Company. News of the strategic partnership sent Rivian's shares up 36.3% in after-hours trading.
Fed's Bowman does not expect any interest rate cuts this year
Fed's Bowman warns there are upside risks to inflation. Fed Governor Bowman said she sees many upside risks to the inflation outlook and reiterated the need to keep borrowing costs high for some time. She said that given the risks and uncertainties in the economic outlook, she would remain cautious when considering future changes in policy stance. She does not expect any interest rate cuts this year. This week the market is mainly focused on the PCE inflation data to be released on Friday. The data is the Fed's preferred measure of inflation. The data is expected to show inflation cooled slightly in May but remained well above the Fed's 2% annual target.
Hong Kong Stock Connect had a net inflow of HK0.32bn on Tuesday, of which CCB (939) had the largest net inflow, reaching HK$0.38bn; followed by ICBC (1398). Tracker Fund (2800) recorded the largest net outflow at HK$0.58bn, followed by CNOOC (883).
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