Market Recap
US stocks closed higher on Wednesday, with the Dow Jones Industrial Average up more than 200 points, as optimism grew that parts of Trump’s tariffs may be overturned following tough questioning from the Supreme Court. Meanwhile, AI-related stocks rebounded, led by AMD, easing fears over overheated valuations.
Investors also digested stronger-than-expected economic data, including ADP private payrolls and ISM services PMI, which painted a resilient US economy but also pushed yields slightly higher. Market focus remains on whether the Fed will proceed with a third rate cut in December, as expectations have risen despite recent strength in data.
US Stocks
AI names staged a comeback after days of weakness. AMD jumped 2.5%, reversing early losses after posting better-than-expected earnings and revenue, helping lift AI peers like Nvidia and Broadcom. Analysts noted that investors appeared ready to “buy the dip” after the recent AI-driven selloff.
At the same time, the US Supreme Court held a hearing questioning the legality of Trump-era tariffs, raising speculation that some duties could be partially rolled back, a potential positive for corporate margins and global trade sentiment.
By the close, the Dow gained 225.86 points (+0.48%) to 47,311.10, the Nasdaq rose 151.16 points (+0.65%) to 23,499.80, and the S&P 500 added 24.74 points (+0.37%) to 6,796.29.
Top Movers:
- AMD +2.5%, Tesla +4.0%, Google +2.4%, Meta +1.4%, Broadcom +2.0%, Lilly +2.1%
- Nvidia -1.75%, Microsoft -1.39%, Apple +0.04%
Chinese ADRs:
The Nasdaq Golden Dragon China Index rose 0.15%, as Chinese tech stocks recovered. Pinduoduo +1.9%, Alibaba +0.3%, JD.com +0.7%, while Bilibili -0.1% and Xpeng -4%. Solar and AI-related plays like JinkoSolar and Canadian Solar surged 16% and 13.7%, respectively.
Hong Kong Stocks
Hong Kong markets advanced sharply at midday, with the Hang Seng Index up 1.65% to 26,362.15 and the Tech Index up 2.04% to 5,903.84.
Chinese tech leaders such as Alibaba, Tencent, and Meituan gained over 2%, while Baidu and Lenovo rose above 1%.
Metals led the rally, Aluminum Corp of China soared over 10% after Citi reiterated its bullish outlook on aluminum supply tightness, citing China’s capacity cap and limited expansion in Indonesia.
Semiconductors also outperformed, with SMIC +4%, supported by rising AI infrastructure demand and optimism in the global GPU market, projected to grow from $77B in 2024 to $472B by 2030, fueled by ChatGPT and DeepSeek-driven applications.
A-Shares (A50)
Mainland Chinese stocks opened higher, tracking Wall Street gains. At midday:
- Shanghai Composite: +0.88% to 4,004.25
- Shenzhen Component: +1.39% to 13,407.30
- ChiNext Index: +1.39% to 3,210.15
Trading volumes expanded to ¥13.38 trillion, with over 2,700 stocks advancing.
Leading sectors included phosphates, storage chips, fusion energy, insurance, and wind power, while Hainan FTZ, tourism, and gaming lagged.
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