Hong Kong Stock Market News | Tech stocks across the board plummet, Hengkong Index falls nearly 3%, strong non-farm data suppresses interest rate cut expectations.

Zhitong App learned that the entire technology stock market has experienced a downturn, with Hengkang's index falling nearly 3% during trading hours. As of the time of writing, Alibaba-SW (09988) has dropped 2.37% to HKD 69.95, Tencent (00700) has fallen 1.85% to HKD 286.8, and Yuewen Group (00772) has declined 1.97% to HKD 27.3.

In terms of news, the latest US non-farm payroll data released on Friday showed that the US economy added 216,000 new jobs in December, exceeding market expectations of 170,000. After the release of the non-farm payroll data, the CME FedWatch Tool showed that the market expects the Federal Reserve to remain unchanged at its January meeting, with a 56% probability of a 25 basis point rate cut in March, which is lower than the previous trading day's expectations.

CICC International pointed out that the December non-farm payroll data remains strong, and the high wage growth may exacerbate inflationary stickiness. At the same time, changes in the geopolitical situation in the Middle East and the resurgence of global supply chain pressures may increase the upward risks of US inflation, and the Federal Reserve still faces challenges in achieving its 2% inflation target. The current market expectations for interest rate cuts remain optimistic, but the bank reiterates its cautious judgment on interest rate cuts: the timing of the rate cut may be later than market expectations, and the magnitude of the rate cut may also be smaller than market expectations. Investors need to be cautious about the potential pullback risks to risk assets caused by the rebound of the US dollar and US bond yields.