Market Recap
US stocks closed higher on Monday, with all three major indexes recovering part of Friday’s sharp losses. President Donald Trump hinted he may not move forward with the “large tariff hike” previously threatened against China, while Vice President Vance signaled openness to renewed talks. The US.earnings season officially kicks off this week.
Last week, all major US indexes posted declines, the Dow fell 2.7%, S&P 500 down 2.4%, and Nasdaq dropped 2.5%. The S&P 500 plunged 2.7% on Friday alone, its steepest one-day loss since April, when markets were still reeling from Trump’s initial tariff comments.
In a Truth Social post Sunday, Trump suggested he might hold off on the tariff hikes, easing investor fears.
Tim Kelleher of Commonwealth Bank of Australia said: “Markets were nervous, but Trump seems to be pulling another ‘TACO: Trump Always Chickens Out’ move, softening his tone again.”
US Stocks
Mega-cap techs led the rebound: Tesla +5.42%, Alphabet A +3.2%, NVIDIA +2.82%, Amazon +1.71%, Meta +1.47%, Apple +0.97%, Microsoft +0.6%.
The Nasdaq Golden Dragon China Index gained 3.21%, with broad strength among Chinese ADRs: 21Vianet +10%, NIO +7%, MINISO +5%, Alibaba and JD.com +4%, Xpeng and Baidu +3%.
Market Snapshot:
- Dow Jones +587.98 pts (+1.29%) to 46,067.58
- Nasdaq +490.18 pts (+2.21%) to 22,694.61
- S&P 500 +102.21 pts (+1.56%) to 6,654.72
Hong Kong Stocks
Hong Kong markets opened higher but reversed midday. Tech shares mostly declined: Bilibili −4%, Kuaishou −3%, Baidu −3%, Lenovo −2%, Alibaba, NetEase, and Tencent −1%, while Xiaomi +2% and JD.com +1%.
Recently favored semiconductor, rare earth, and copper stocks all fell after strong openings — Hua Hong Semiconductor −10%, SMIC −6%, China Nonferrous Mining −5%. Pharmaceutical, AI-neural, dairy, and defense names also weakened.
On the upside, film and media stocks surged, led by Huanxi Media +23%. Banking, nuclear, shipping, and coal stocks mostly rose, China Merchants Bank +4%, and the “Big Five” state banks each gained over 1%.
Market Snapshot:
- Hang Seng Index −0.2% to 25,837.64
- Hang Seng Tech Index −1.3% to 6,065.61
- China Enterprises Index +0.07% to 9,229.08
A50 Index
Mainland A-shares traded mixed by midday. The Shanghai Composite +0.21%, Shenzhen Component −1.02%, ChiNext −2.24%, and Beijing 50 +0.65%.
Total half-day turnover across Shanghai, Shenzhen, and Beijing reached 1.68 trillion yuan, up 90.8 billion yuan from the previous session, with over 2,800 stocks declining.
Leading sectors: lab-grown diamonds, insurance, liquor, coal, photovoltaics, banking, and precious metals.
Lagging sectors: lithography, semiconductors, CPO, PEEK materials, and consumer electronics.
Market Snapshot:
- Shanghai Composite +0.21% to 3,897.56
- Shenzhen Component −1.02% to 13,096.03
- ChiNext −2.24% to 3,009.94
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