US stocks closed higher on Wednesday, with the Nasdaq and S&P 500 both reaching new all-time highs. Nvidia surged past $1,200, breaking the $3 trillion market cap barrier, and becoming the second-largest company in the U.S.

Investors are analyzing the latest corporate earnings reports, while the US May ADP private employment data came in below expectations, indicating a cooling labor market.

Mizuho Securities raised Nvidia’s price target from $1,180 to $1,275, maintaining a “buy” rating, citing potential success for the upcoming Blackwell GPU platform and the beneficial impact of an impending stock split.

Goldman Sachs’ Global Markets Division Managing Director Scott Rubner wrote in a client report on Wednesday, “As we enter the new quarter and the second half of the year, funds will quickly flow into the stock market. Additionally, stock prices should benefit from strong seasonal trends and retail investor participation.”

US Stocks

Fundamental Analysis: 

Major tech stocks mostly rose, with Nvidia up over 5%, marking three consecutive days of record highs and surpassing Apple to become the world’s second-largest company by market cap, behind Microsoft.

Nvidia has surged over 147% this year. Meta rose over 3%, Netflix over 2%, and Microsoft and Amazon gained more than 1%. Apple, Tesla, and Google saw slight gains.

The chip and semiconductor sector also performed well, with ASML up over 9%, ARM up over 8%, TSMC up over 6%, and AMD up over 3%.

Popular Chinese stocks mostly gained, with the Nasdaq Golden Dragon China Index rising 1.60%. NetEase increased over 6%, Tencent Music over 4%, XPeng over 3%, Bilibili and Baidu over 2%, and JD.com, Alibaba, NIO, Full Truck Alliance, and Futu Holdings all up over 1%. Pinduoduo rose over 2%, while Vipshop, iQIYI, and Weibo fell more than 1%.

Technical Analysis: 

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones: +96.04 points (+0.25%), at 38,807.33
• Nasdaq: +330.86 points (+1.96%), at 17,187.90
• S&P 500: +62.69 points (+1.18%), at 5,354.03

Hong Kong Stock Market

 Fundamental Analysis: 

Hong Kong’s three main indices opened higher but pulled back slightly. Major tech stocks mostly performed well, with NetEase and Xiaomi up over 3%, and gains for Baidu, Tencent, and Alibaba, while JD.com fell over 1%.

Semiconductor stocks strengthened, with SMIC up over 6%. Shipping stocks were buoyant, with COSCO hitting a nearly 17-year high.

Generative AI stocks saw potential gains, and energy stocks, including power, coal, and oil sectors, all rose.

Gold stocks strengthened, with Zhaojin Mining up over 6%. The Bank of Canada announced a 25-basis-point rate cut to 4.75% on Wednesday, making it the first G7 country to start a rate-cut cycle this round. This move could pressure the Federal Reserve as more central banks globally begin to cut rates.

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index: +0.59%, at 18,533.22
• Hang Seng Tech Index: +1.27%, at 3,856.00
• Hang Seng China Enterprises Index: +0.51%, at 6,575.51

FTSE China A50 Index

Fundamental Analysis: 

A-shares fluctuated in a narrow range during the morning session, with the major indices oscillating around the flatline.

In sector performance, PCB concept stocks surged against the trend, with Mingyang Circuit, Jinbaize, Xiehe Electronics, and Zhongjing Electronics hitting the daily limit.

Shipping stocks strengthened, with Jiufeng Energy hitting the daily limit and COSCO Shipping Special up over 5%.

Precious metals rebounded, with Yulong Shares hitting the daily limit and Xiaocheng Technology up over 5%. Power stocks also saw movement, with Shen Nan Dian A hitting the daily limit.

On the downside, Car Cloud concept stocks corrected, with multiple stocks including Ancha Testing falling over 10%.

Technical Analysis:  

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index: -0.08%, at 3,062.93
• Shenzhen Component Index: -0.12%, at 9,381.90
• ChiNext Index: -0.17%, at 1,830.40
• STAR Market 50 Index: -0.21%, at 750.48

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