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Weekly Wrap Content
for the week of Feb 23:
1. Week
8 major indexes performance;
2.
Week 8 US sector indexes performance;
3.
Major indexes weekly charts of support and resistance levels;
U.S.
For the week
ended Feb 23, the U.S three major indexes closed higher in the shortened trading week by a public holiday on Monday. The S&P 500 index (SPX) and the Dow
Jones Industrial Average (DJI) edged to all-time highs for the second straight
week as the market capped a record-setting week fueled by AI-driven
bullishness and chip leader Nvidia's (NVDA) stronger-than-expected earnings. Nasdaq
Composite Index also posted its biggest daily gain in about a year on Thursday,
when NVIDIA added a record USD 277 billion to its market capitalization. The
S&P 500 gained for the sixth week out of the past seven. Refer to major
indexes’ weekly performance table below.
1. Nvidia(NVDA) finished with a surge of nearly 9% to a record high for the week and briefly topped $2 trillion in market value. The company's strong results, which included a 265% year-over-year revenue jump, sparked a broad rally Thursday. The company also increased its full-year guidance on robust demand for its chips, which are used in artificial intelligence applications.
2. Positive. Weekly jobless claims come in below expectations, suggesting that the labor market remained tight. On a seasonally adjusted basis, 201k new claims were filed in the week ended February 17, a decline of 12k versus the preceding week. The number of continuing claims slipped 27k to 1.862 million.
3. Fed’s Waller suggests policymakers shouldn’t rush to cut rates in a speech delivered on Thursday. Waller believes that inflation is “likely” to return to the Fed’s 2% target. But he also cautioned that he’d like at least a few more months of data to see “whether January was a speed bump or a pothole.”
4. GDP, PCE update ahead. It’s expected to release Q4 GDP initial estimate on Feb 28. The Fed’s preferred metrics of inflation, personal consumption expenditure (PCE) inflation next reading will come on Feb. 29, and the expectation is for a moderation in both headline and core PCE inflation annually.
SPX
sectors in play
All 11 sectors
in the SPX closed with weekly gains. It appears the previous lagging sectors such
as Consumer Staples(XLP) and Materials( XLB) play catch-up following mega- tech’s
recent rally. Technology-heavy sectors such Tech sector(XLK) and Communication
Services(XLC) have had awesome lead so far with 6.66% and 9.72% YTD return
respectively. On the other hand, energy(XLE) lagged. Refer to below SPX sectors
ETF weekly performance table.
Both SPX and DJI edged to
all-time highs for 2nd straight week. While Nasdaq(COMP) recorded
its biggest daily gain on Thursday when NVDA surged after earning announcement.
All three indexes are on track of strong bull run.
Click below three indexes for their weekly charts.
China/HK
Chinese equities rallied as recovery hopes rose following buoyant
holiday spending during the prior week’s Chinese New Year holiday. The Shanghai
Composite Index(SSE) rose 4.85%, while the blue chip CSI 300 gained 3.71%. In
Hong Kong, the benchmark Hang Seng Index advanced 2.36%(Refer to the above
weekly performance table).
Key highlights for the week and outlook
for China/HK:
1. Tourism revenue over the weeklong Chinese New Year holiday surged 47% over the 2023 holiday and surpassed pre-pandemic levels, according to data from the Ministry of Culture and Tourism. Domestic trips rose 34% from last year, and international trips also increased. However, average spending per trip fell 9.5% from 2019, signaling lingering caution among consumers.
2. The PBoC announced that the five-year loan prime rate was lowered by a bigger-than-expected 25 basis points to 3.95%, marking the largest cut since the reference rate was introduced in 2019. Lowering the five-year rate, a key gauge for mortgages, will reduce mortgage rates for homebuyers and aims to shore up demand in the troubled property sector. Policymakers left the one-year lending rate unchanged.
3. New home prices register seventh monthly decline in 70 cities, fell 0.3% sequentially in January.
Click below title to view weekly charts.
Singapore
Against other major markets, STI pulled back 1.15% this week. It
appears there are some profit-taking after previous week’s 2.67% rally. The
index retraced and sitting right above its 200dma support at 3184 level, so do
expected technical rebound in coming week.
Top weekly gains: Wilmar +4.63%; UOL +4.28%;ThaiBev +4%
Top weekly losers: Gengting Sp -10.58%; SIA -10.52%; Sembcorp-9.38%
Source: Some contents
and data excerpted from various public market reports.
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