US markets closed lower on Wednesday, with the Dow Jones Industrial Average dropping more than 410 points. Rising Treasury yields pressured the indices, with the 10-year yield climbing for the second consecutive day, surpassing 4.6%.

Despite Nvidia hitting a new all-time high, the broader market remained in decline. Investors continued to focus on corporate earnings and the timing and extent of potential Federal Reserve rate cuts.

Nvidia’s stock surged about 20% over three days following its earnings report, standing out among major tech stocks. In contrast, Tesla, Alphabet, Microsoft, and Meta continued to decline.

Julius Baer Group’s equity strategist Leonardo Pellandini commented, “The risk of rising long-term bond yields is eroding stock valuations, and short-term pressure seems inevitable. However, with easing inflation expectations and upcoming rate cuts, we believe the market can continue to rise.”

US Stocks

Fundamental Analysis: 

Most major tech stocks declined, with Meta down over 1%, and Microsoft, Google, and Tesla also slightly down. Nvidia managed a slight increase, setting a new closing high.

Precious metals, chip, and semiconductor stocks were among the hardest hit, with Gold Resources down over 6%, AMD down 4%, and ARM, ASML, Barrick Gold, and AMD all down over 3%.

Intel fell nearly 3%, and Qualcomm dropped over 2%. Real estate and healthcare stocks rose, with HCA Healthcare and DaVita both up over 2%.

Popular Chinese stocks generally fell, with the Nasdaq Golden Dragon China Index down 0.86%. Zeekr dropped over 4%, Weibo fell nearly 3%, and XPeng, iQiyi, and Bilibili all declined over 2%.

JD.com, Alibaba, NetEase, Baidu, and Li Auto were down over 1%, while Futu Holdings, Full Truck Alliance, Tencent Music, and Vipshop saw slight declines. Pinduoduo rose over 1%, and Nio edged up slightly.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones: -411.3 points, -1.06%, at 38,441.54
• Nasdaq: -99.30 points, -0.58%, at 16,920.58
• S&P 500: -39.09 points, -0.74%, at 5,266.95

Hong Kong Stock Market

 Fundamental Analysis: 

Hong Kong’s major indices fell after an early surge. Tech stocks led the decline, with Meituan down nearly 2%, JD.com and Xiaomi down over 1%, and Lenovo and Alibaba both down nearly 1%.

Gold stocks saw significant drops, with Zijin Mining falling nearly 6%.

Real estate stocks also fell, with Jinke Properties down over 8%. The release of a new energy-saving and carbon-reduction action plan boosted photovoltaic stocks, with Xinyi Solar rising nearly 4%.

Semiconductor stocks performed strongly, with Brainhole Technology up nearly 105% and SMIC up over 4%.

Automotive stocks showed mixed performance. The State Council’s new energy-saving and carbon-reduction action plan aims to phase out old vehicles, raise fuel efficiency standards for commercial vehicles, gradually remove purchase restrictions on new energy vehicles, and promote the electrification of public sector vehicles.

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index: -1.22%, at 18,252.32
• Hang Seng Tech Index: -0.37%, at 3,751.14
• Hang Seng China Enterprises Index: -1.21%, at 6,477.94

FTSE China A50 Index

 Fundamental Analysis: 

A-shares experienced narrow fluctuations, with the semiconductor industry chain remaining active.

Sector-wise, commercial aerospace stocks surged, with Western Testing closing at the 20% daily limit, and Shaanxi Huada and Tianyin Electromechanical posting significant gains.

Storage chip stocks also performed well, with Wanrun Technology and Shanghai Belling hitting their daily limits.

The defense sector was strong, with Tianjian Technology reaching the daily limit. The domestic aircraft carrier sector was active, with Gui Sheng Cable hitting the daily limit.

On the downside, non-ferrous metals stocks collectively retreated, with Hua Xi Nonferrous falling to its daily limit.

Power stocks fell, with Mingxing Electric, Dalian Thermal Power, and Huitian Thermal Power all hitting daily limits. Real estate stocks adjusted, with Nanguo Real Estate falling over 6%, leading the decline.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite: -0.12%, at 3,107.18
• Shenzhen Component: -0.08%, at 9,407.83
• ChiNext Index: +0.14%, at 1,813.65
• STAR Market 50 Index: +1.29%, at 743.80

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