Financial News
Written by: Yang Qian
2021-01-15 06:15
Last update date: 2021-01-15 06:16
U.S. stocks turned around on Thursday. The Nasdaq and the Du Jones Industrial Index hit record highs respectively, but closed down.
Only Russell 2000, which represents the growth momentum of small businesses, hit a record high and maintained an upward trend at the close.
Affected by being placed on the US Department of Defense sanctions list, Xiaomi’s ADR share price plunged into the water. It was as low as US$18.32, down 14.23% from the previous day’s closing price, and down about 9% from the closing price in Hong Kong.
U.S. stocks map source Reuters
US stocks rose in early trading on Thursday. The Dow Jones Industrial Average hit a record high of 31,223.78 during the day; the Nasdaq Composite Index broke the top at 13,220.16; and the three major indexes were weaker in the middle and closed slightly.
The Dow fell about 69 points, or 0.2%, close to 30,992, while the S&P 500 SPX index closed at 3,796, down 14 points.
The Nasdaq index closed at 13,113 points, down about 16 points.
It is worth noting that the small-cap stock index Russell 2000 also hit a record high of 2164.32 points on Thursday, and closed at 2,155.35 points, reporting an increase of about 43 points.
Before the market opened on Thursday, data showed that the number of first-time jobless claims in the United States increased more than expected.
According to US media reports, the newly-elected President Biden is expected to announce a federal spending plan that may approach US$2 trillion on Thursday night, including another round of direct funding for families.
National defense blacklist affects Xiaomi's share price
Mi profile picture (Reuters)
The administration of President Trump of the United States took repeated actions against China on January 14. The Department of Defense included nine Chinese companies on the PLA-related sanctions list of Chinese companies and prohibited nationals from investing, including the aircraft manufacturer Comac. And mobile phone manufacturer Xiaomi (Xiaomi).
As soon as the news came out, the US-listed Xiaomi ADR share price plunged into the water. It was as low as US$18.32, down 14.23% from the previous day's closing price, and down about 9% from the closing price in Hong Kong.
Since then, the stock price has rebounded and closed at $19.75, down 7.54%.
Trading was extremely active, with a single-day trading volume reaching 1,827,478, which was 8.567 times the 10-day average trading volume of 213,315.3.
Among the nine new Chinese companies on the list, the stock price of Luokung Technology Corporation (LKCO), another US-listed Chinese concept stock, fell 2.13%.
China National Offshore Oil Corporation (CNOOC), which was just announced by the US Department of Commerce on Thursday to join the entity control list, rose sharply and closed at $102.71 on the New York Stock Exchange on Thursday, a 5.1% one-day increase.
The causality is puzzling.
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