On Thursday, the three major U.S. stock indices ended roughly flat, with the Dow edging up for its fifth straight day of gains. Most large-cap tech stocks declined, but Apple stood out, rising for a fourth consecutive day to a new all-time high and bringing its market cap just shy of $4 trillion. Mixed data on initial jobless claims did little to alter market expectations of the Federal Reserve’s policy trajectory.
With Christmas just past, U.S. equity and bond markets were relatively stable as many major European markets remained closed, resulting in thin trading. Trading volume in U.S. stocks was notably below last month’s average. Investors continue to anticipate a “Santa Claus rally,” given that historically, the market tends to perform favorably toward the end of the year.
Economic Data
Last week’s initial U.S. jobless claims dipped slightly to 219,000, the lowest in a month, indicating labor market resilience. However, continuing claims unexpectedly rose by 46,000 to a seasonally adjusted 1.91 million, the highest level since November 2021 and above the consensus estimate of 1.88 million—suggesting it’s taking longer for the unemployed to find new jobs.
Key Stock Performances
Apple’s share price hit another all-time high, rising for the fourth consecutive session to a total market cap of $3.92 trillion. Wedbush analyst Daniel Ives raised Apple’s price target from $300 to $325, reiterating an “Outperform” rating.
US Stock Market Overview
Most large-cap tech stocks slipped, with Tesla down over 1% and Microsoft, Nvidia, Netflix, Google, Amazon, and Meta posting modest declines. Intel and Apple were slightly higher. Drone-related stocks surged, led by Palladyne AI (+47%), Vertical Aerospace (+30%), and Unusual Machines (+20%). Quantum computing stocks also jumped: SEALSQ Corp rose over 60%, Quantum Corp up nearly 50%, Rigetti Computing 36%, and Quantum Computing 12%.
Chinese ADRs showed mixed performance, with the Nasdaq Golden Dragon China Index up 0.42%. Kingsoft Cloud soared over 14%, FangDD nearly 13%, and DouYu up 3%. Chinese EV stocks were mostly higher, with Zeekr up more than 8%, Li Auto over 3%, XPeng over 2%, and NIO more than 1%.
Technical Analysis
Market Recap
- Dow Jones: +28.77 points (+0.07%) at 43,325.80
- Nasdaq Composite: -10.77 points (-0.05%) at 20,020.36
- S&P 500: -2.45 points (-0.04%) at 6,037.59
Hong Kong Stock Market Overview
Hong Kong’s three major indices all climbed. Tech stocks were mixed: JD.com fell over 3%, Baidu over 1%, and Alibaba nearly 1%, while Xiaomi rose more than 5%. Kingsoft Cloud—which may benefit from Xiaomi’s GPU cluster initiative—surged 33%. Semiconductor stocks also saw strong gains, with SMIC up over 7%. Brokerage stocks advanced, led by Guolian Securities (+7%). Among automakers, Li Auto rose 7% and stated plans to further develop AI.
Xiaomi gained over 5%, approaching its historical high. Reports indicate Xiaomi is expanding its AI model development and setting up a large GPU cluster far surpassing the original 6,500-GPU scale. Several months ago, Xiaomi began rolling out this plan under Chairman Lei Jun’s leadership. Lei Jun has also reportedly recruited Luo Fuli, a key contributor to DeepSeek-V2, to head Xiaomi’s AI model team.
Technical Analysis
Market Recap
- Hang Seng Index: +0.12%, closing at 20,121.80
- Hang Seng Tech Index: +1.20%, ending at 4,561.68
- Hang Seng China Enterprises Index: +0.17%, at 7,316.66
A50 & China A-Shares Overview
All three major A-share indices rebounded in morning trade. By midday, total market turnover reached 898.3 billion yuan, 127.7 billion yuan above the previous session, with over 4,400 stocks advancing.
Sector Highlights:
- Top Gainers: Defense, retail, internet finance
- Lagging: Banking, internet e-commerce
- Leading Performers:
- Defense: Li Jun Co., Chengfei Integration, Lihang Technology, Tongda Co., AECC AE, AECC Aviation all hit limit-up.
- Retail: Dongbai Group, Zhongbai Group, Guofang Group, Wuhan Department Store also rose by the limit.
- Power Grid Equipment: Shunna Power, Guangdian Electric, Tongda Co., Baosheng Co. surged by the limit; Heshun Electric and Xinte Electric rose over 10%.
- Internet Finance: Weston, Guolian Securities hit limit-up; Huijin Technology rose over 10%; Wins Finance and Zhaori Technology followed suit.
- WeChat Stores: Laiyifen, Shiyida fell by the limit, and Qingmu Tech dropped over 8%.
Technical Analysis
Market Recap
- Shanghai Composite (SSE): +0.29%, closing at 3,407.89
- Shenzhen Component (SZSE): +0.68%, ending at 10,746.12
- ChiNext (Growth Enterprise Market Index): +0.73%, finishing at 2,225.98
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
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