The U.S. stock market experienced a significant drop on Tuesday, with the Dow Jones falling below its yearly average.  

The recent surge in U.S. government bond yields has dampened market sentiment, as the ten-year U.S. Treasury yield surpassed 4.81%, reaching a new high not seen since 2007.  

The August JOLTs job openings exceeded expectations, indicating a tight labor market and increasing the possibility of the Federal Reserve raising interest rates in November. 

Investors have been increasingly concerned about the Federal Reserve’s potential interest rate hikes and the long-term maintenance of high-interest rate policies, fearing that this could lead to an economic slowdown. This sentiment has pushed U.S. government bond yields to levels not seen in over a decade. 

U.S. Stocks 

Fundamental Analysis: 

Large technology stocks experienced significant declines, with Amazon dropping by over 3%, Microsoft by over 2%, Google and Facebook by over 1%, and Apple and Netflix seeing slight declines.  

The chip and semiconductor sectors also collectively declined, with AMD, Applied Materials dropping by over 3%, and Nvidia, Broadcom, NXP Semiconductors, and Taiwan Semiconductor Manufacturing Company falling by over 2%. 

Bank stocks performed weakly, with Goldman Sachs falling by over 3%, Morgan Stanley, Bank of America, and Wells Fargo dropping by over 2%, Citigroup by over 1%, and JPMorgan Chase experiencing a slight decline. 

Novavax Pharmaceuticals surged by over 8% after the U.S. FDA approved an updated version of their COVID-19 vaccine booster shot for individuals aged 12 and older. 

Leading Chinese concept stocks saw significant declines, with the Nasdaq Golden Dragon Index falling by 2.24%. iQiyi, TAL Education, and Ctrip.com dropped by over 4%, while XPeng Motors and Futu Holdings fell by over 3%.  

Baidu, Taiwan Semiconductor Manufacturing Company, Tencent Music, and Alibaba experienced declines of over 2%, and Li Auto and Full Truck Alliance fell by over 1%. Netease and Bilibili saw slight declines. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average fell by 430.97 points, a 1.29% decrease, closing at 33,002.38 points. 
• Nasdaq Composite Index dropped by 248.31 points, a 1.87% decrease, closing at 13,059.47 points. 
• S&P 500 Index declined by 58.94 points, a 1.37% increase, closing at 4,229.45 points. 

Hong Kong Stocks 

Large technology stocks continued to decline in the morning session, with Baidu falling by nearly 5%, Meituan dropping by over 3%, and Kuaishou, Alibaba, and Tencent following suit.  

China Evergrande Group declined by over 8% despite a strong rebound in the previous session, surging over 28%. 

Casino and oil stocks continued to weaken, while bank stocks were active, with the four major banks rising against the trend. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped by 1.04%, closing at 17,151.61 points. 
• Hang Seng Tech Index (HSTECH) fell by 1.71%, closing at 3752.43 points. 
• Hang Seng China Enterprises Index (HSCEI) declined by 1.34%, closing at 5,869.20 points. 

FTSE China A50 Index 

Fundamental Analysis: 

The A-share market in China remained closed for the entire day in light of the China National Day holiday. 

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