U.S. stocks closed higher on Tuesday, marking the 12th consecutive trading day of gains for the DJIA. The market continues to focus on U.S. stock earnings reports and the interest rate decision that the Federal Reserve will announce tomorrow. The U.S. Consumer Confidence Index reached a two-year high in July. 

U.S. Stocks 

Fundamental Analysis: 

Regarding the U.S. stock market’s surge, Morgan Stanley’s strategists maintain their belief that the current upward trend in U.S. stocks is largely excessive.  

They caution their clients about the high concentration and trend in the S&P 500 index, which is at its highest level in 60 years.  

They believe that the market is too optimistic and that the macroeconomic scenario currently factored in is more favorable than a soft landing.  

Morgan Stanley reiterates its previous stance that the market will decline, and volatility will also return at the same time. 

Most popular technology stocks showed gains, with Tesla surging over 3%, while Google and TSMC rose over 1%. However, Meta and Intel fell by more than 1%.  

Department stores, banks, and oil and gas stocks saw a general increase, with Kohl’s surging over 5% and Nordstrom rising over 4%. Major banks such as Bank of America and JPMorgan Chase rose over 2%, while Goldman Sachs and Morgan Stanley increased by nearly 2%.  

Western Oil rose over 2%, and Chevron, Apache, ConocoPhillips, and Exxon Mobil all rose over 1%. Several WallStreetBets (WSB) concept stocks experienced significant gains, with AMC Theaters rising over 32%, Gaussin Electronics surging over 17%, and Express climbing nearly 12%. 

Technical Analysis:    

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average closed up 183.55 points, a 0.52% increase, with an 11-day consecutive rise, ending at 35,411.24 points. 
• Nasdaq Composite Index closed up 26.06 points, a 0.19% increase, ending at 14,058.87 points. 
• S&P 500 Index closed up 18.30 points, a 0.40% increase, ending at 4,554.64 points. 

Hong Kong Stocks 

Fundamental Analysis: 

After yesterday’s strong rebound, Hong Kong stocks experienced a correction. Weighted technology stocks saw a general decline, with JD.com, Inc. (9618.HK) falling over 2%, and heavyweight stocks like Alibaba Group Holding Limited (9988.HK) and Baidu, Inc. (9888.HK) also dropped.  

Real estate stocks and property management stocks showed mixed trends, with Longfor Group Holdings Limited (0960.HK) falling nearly 3% and Midea Real Estate Holding Limited (3990.HK) continuing its rise.  

Automotive stocks collectively weakened, with XPeng Inc. (9868.HK) dropping by 6%. However, gold stocks and gaming stocks were active, rebounding after yesterday’s decline. 

Technical Analysis:    

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index dropped 0.79%, closing at 19,280.21 points. 
• Hang Seng Tech Index dropped 1.38%. 
• Hang Seng China Enterprises Index dropped 1.19%. 

FTSE China A50 Index 

Fundamental Analysis: 

The three major A-share indices opened slightly lower today. After the opening, the Shanghai Composite Index and the Shenzhen Component Index fluctuated within a narrow range, while the ChiNext Index rebounded slightly and briefly turned positive.  

The combined trading volume of the two markets was 499.075 billion yuan, with a net outflow of 496 million yuan of northbound funds. 65 stocks rose by the daily limit (including ST stocks), while 3 stocks fell by the daily limit. 

All industry sectors saw gains, with engineering consulting services, real estate services, fertilizer industry, real estate development, environmental protection industry, and cement building materials leading the gains.  

The gains in gaming, cultural media, automotive parts, internet services, and motors were relatively smaller.  

In terms of themes, new urbanization, phosphorus chemical industry, automotive disassembly, and assembly construction were active. 

Technical Analysis:    

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index dropped 0.35%, closing at 3,220.23 points. 
• Shenzhen Component Index dropped 0.45%, closing at 10,971.44 points. 
• ChiNext Index dropped 0.14%, closing at 2,189.8 points. 
• Sci-Tech Innovation 50 Index dropped 0.03%, closing at 964.12 points. 

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