Market Recap
On Tuesday, US stocks fell across the board as investors questioned the sustainability of the AI-driven rally. The Nasdaq dropped nearly 1%, led lower by Nvidia, Oracle, and Amazon.
Nvidia slid 2.8% after announcing a $100 billion investment in OpenAI the previous day, a deal that initially lifted its stock and the broader market. Some investors, however, compared the move to the excesses of the dot-com bubble, while also questioning whether the ambitious growth plans of leading AI players could be supported by sufficient energy resources.
Oracle fell 4.3% after a three-month, 50% rally fueled by bullish AI sales forecasts.
Comments from Fed Chair Jerome Powell added to valuation concerns. Powell stated that “equity valuations are quite high,” while also cautioning that the path of rate cuts remains uncertain, describing the environment as a “challenging situation.”
US Stocks
Mega-cap tech closed lower:
- Nvidia –2.82%
- Microsoft –1.01%
- Apple –0.64%
- Google –0.34%
- Amazon –3.04%
- Meta –1.28%
- Tesla –1.93%
- Oracle –4.36%
Chinese ADRs mostly fell, with the Nasdaq Golden Dragon China Index down 2.22%:
- Alibaba –0.71%
- JD.com –2.92%
- Pinduoduo –0.04%
- NIO +0.29%
- XPeng –0.80%
- Li Auto –1.65%
- Bilibili –4.02%
- Baidu –8.09%
- NetEase +0.39%
- Tencent Music –4.20%
- Pony.ai +3.79%
- Hesai –1.55%
US Market Technicals:
- Dow Jones: –88.76 (–0.19%) at 46,292.78
- Nasdaq: –215.50 (–0.95%) at 22,573.47
- S&P 500: –36.83 (–0.55%) at 6,656.92
Hong Kong Stocks
Hong Kong markets opened lower but reversed higher by midday.
- Alibaba +6%+
- Kuaishou +5%+
- JD.com +2%+
- Meituan, Bilibili, Tencent, Lenovo +1%+
Semiconductors outperformed, with Hua Hong Semiconductor +7%+. Drivers included Goldman Sachs raising SMIC’s target price by 14% on sustained AI chip demand in China; imminent silicon wafer price hikes expected to benefit suppliers in Q4; and reports that TSMC’s 2nm process will cost at least 50% more than 3nm, while the last-generation 3nm CPU is already about 20% pricier than its predecessor.
Alibaba gained after its Qwen team unveiled three new AI models on Sept. 24: Qwen3Guard (safety review), Qwen3-Max (its largest and most powerful model yet, rivaling GPT-5-Chat), and Qwen3-VL (its most advanced vision-language model to date).
Hong Kong Market Technicals:
- Hang Seng Index: +0.91% at 26,397.98
- Hang Seng Tech Index: +2.19% at 6,301.88
- China Enterprises Index: +1.13% at 9,395.00
A50 & A-Shares
Mainland indexes rallied in the morning session:
- Shanghai Composite +0.63% at 3,845.91
- Shenzhen Component +1.11% at 13,265.01
- ChiNext +1.76% at 3,169.40
- Beijing 50 +1.25%
- STAR 50 +4.94%
Turnover across Shanghai, Shenzhen, and Beijing totaled RMB 1.42 trillion for the half-day session, RMB 293.3 billion lower than the previous session, with more than 4,000 stocks advancing.
Leading sectors: semiconductors, lithography, real estate, lab-grown diamonds, gaming, and energy storage.
Lagging sectors: tourism & hotels, precious metals, coal mining & processing, banks, and airports/aviation.
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