📈 Market Mood Turns Optimistic: U.S. Stocks Rise for Sixth Day

Investor sentiment is improving, with U.S. markets posting a six-day winning streak. The Dow Jones climbed 300 points, while the S&P 500 and Nasdaq also closed higher—signs that confidence is returning. Driving the rally were positive signals on trade negotiations, cooling labor market data that pushed bond yields lower, and solid corporate earnings.

It’s reported that the U.S. has finalized the framework of a new trade agreement with a foreign partner—widely speculated to be India. Talks appear to center on reducing import tariffs on automobiles and parts, which currently stand as high as 26%. If finalized, India would become the first country to reach such a deal under the new U.S. tariff approach—signaling a closer economic relationship between the two countries.

Complementing this, the U.S. President signed an executive order to revamp auto tariffs, paving the way for renewed trade talks with major economies like China. This move helped ease concerns over fragmented global trade and lifted appetite for risk assets.

On the macro front, the latest U.S. JOLTS report showed job openings fell to 7.192 million in March, the lowest in seven months—strengthening market expectations for a potential Fed rate cut. The 10-year Treasury yield dropped to 4.227%, a three-week low, and the 2-year yield fell even further to 3.699%. The bond yield decline prompted a shift back into equities.

In tech, Apple rose 1.2% but Tesla slid 1.5% under pressure from competition in China. Chinese ADRs were mixed—Alibaba eked out gains while Xpeng Motors plunged over 6% amid slower EV orders.

📉 Hong Kong: Cautious Ahead of Holidays

The Hang Seng Index touched 22,262 early in the session but slipped back below 22,000, suggesting pre-holiday caution among investors. Derivatives data shows short-term bullish sentiment, with increased open interest in call warrants near the 21,600–21,699 range, while resistance remains firm at around 22,600.

Traders note that some investors are locking in profits ahead of the Golden Week holiday. Despite the positive backdrop from easing U.S.–China trade tensions, local macro data has shown limited improvement, increasing the likelihood of short-term market volatility. Technically, the 22,200–22,500 zone remains a key resistance band. Without a clear breakout, the index may continue to trade in a 21,800–22,200 range.

🔍 What to Watch Next

Markets will be closely monitoring the full details of the upcoming U.S.–India trade agreement—particularly any cooperation in semiconductors or advanced tech. Also in focus is the Fed’s upcoming policy meeting in May; continued decline in U.S. bond yields would likely support high-valuation assets like tech stocks.

For Hong Kong and China markets, attention turns to the latest PMI data and earnings from major Chinese firms. Overall, the investment landscape is caught between improving market sentiment and lingering economic uncertainties.

🎯 Strategy Outlook: Stay Selective and Defensive

Given the mixed backdrop, a defensive stance is advisable in the short term. Focus on hardware tech, domestic demand recovery themes, and sectors less exposed to policy risks. Pragmatic positioning could help weather any turbulence as the market continues to find its footing.