U.S. stocks closed higher on Tuesday, with the Dow Jones Industrial Average rising over 300 points. U.S. Treasury yields declined. The market is closely watching the important Consumer Price Index (CPI) inflation data to be released on Wednesday, as well as the upcoming second-quarter earnings reports. 

U.S. Stocks 

Fundamental Analysis: 

The second-quarter earnings season for U.S. stocks will kick off this week. Some “systemically important financial institutions” will release their earnings reports this week, including JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock. Other important companies that will report their earnings include PepsiCo, Delta Air Lines, and more. 

The six major U.S. technology giants account for over 50% of the weighting in the Nasdaq 100, and adjustments are imminent. The regulators behind the Nasdaq 100 index, which is considered a global technology stock benchmark, are taking action to weaken the influence of these large technology giants on the index. 

Technical Analysis:    

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones rose 317.02 points, or 0.93%, to 34,261.42. 
• Nasdaq rose 75.22 points, or 0.55%, to 13,760.70.  
• S&P 500 rose 29.73 points, or 0.67%, to 4,439.26. 
  
  

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks continued their rebound in the morning session. Following the positive performance in overseas markets, Hong Kong stocks opened higher by 137 points in the morning, narrowing to a gain of only 79 points at one point.  

The Hang Seng Index was at 18,739. It later received buying support and gradually expanded its gains to a high of 18,932, with a maximum increase of 272 points. It continued to hover near the high before the market closed. 

In terms of the market, large technology stocks performed well, with Bilibili Inc. (9626.HK) up over 7%, KE Holdings Inc. (2423.HK) and Meituan (3690.HK) up over 4%, and Baidu, Inc. (9888.HK), JD.com, Inc. (9618.HK), Tencent Holdings Limited (0700.HK), and ALIBABA (1688.HK) all showing gains. 

International oil prices rose, and domestic policies were favorable. The three major oil companies rose. With a hot summer box office and continued increase in film-related stocks, Maoyan Entertainment (1896.HK) led with an increase of over 9%. However, airline stocks performed poorly, and traditional Chinese medicine and defense stocks showed significant declines. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index rose 1.15% to 18,875.17. 
• Hang Seng Tech Index rose 2.45%.  
• Hang Seng China Enterprises Index rose 1.61%. 
  
  

FTSE China A50 Index 

The three major indices of A shares opened slightly lower, and the market traded in a narrow range in the morning session with slightly increased trading volume compared to the previous trading day, but the market’s upward momentum has not yet begun. 

In terms of industry performance, leading sectors include power equipment, automotive manufacturers, fertilizer industry, electric machinery, and automotive parts.  

Declining sectors include shipbuilding, gaming, aviation and airports, communication equipment, and real estate development. Active sectors include hub motors, electronic rearview mirrors, automotive integration die-casting, Huawei automobiles, fluorine chemicals, and phosphorus chemicals. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index fell 0.13% to 3,217.28. 
• CSI 300 Index fell 0.18% to 11,008.96. 
• ChiNext Index fell 0.24% to 2,211.51. 
• STAR 50 Index fell 0.68% to 994.56. 
  
  

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