Market Recap
On Thursday, US stocks fell for a third straight day as rising Treasury yields and weakness in technology weighed on sentiment. The S&P 500, Dow, and Nasdaq all closed lower, pressured by a sharp drop in Oracle and Tesla. Better-than-expected jobless claims and stronger Q2 GDP reinforced concerns that the Fed may delay further rate cuts.
Oracle tumbled 5.55%, marking its third consecutive decline, as doubts persisted about the sustainability of AI-driven demand. Tesla also fell 4.38%, adding to the drag on the broader market.
Bond yields surged, with the 10-year U.S. Treasury hitting 4.2%, intensifying the selloff in growth stocks and prompting investors to trim risk positions.
US Stocks
Mega-cap tech mostly slipped:
- Nvidia +0.41%
- Microsoft –0.61%
- Apple +1.81%
- Google –0.55%
- Amazon –0.94%
- Meta –1.54%
- Tesla –4.38%
- Broadcom –0.95%
- Oracle –5.55%
Chinese ADRs mostly advanced, with the Nasdaq Golden Dragon China Index +0.42%:
- Alibaba –0.55%
- JD.com +0.98%
- Pinduoduo +0.04%
- NIO +4.92%
- XPeng +4.61%
- Li Auto +1.49%
- Bilibili +4.07%
- Baidu +1.87%
- NetEase +0.50%
- Tencent Music –0.59%
US Market Technicals:
- Dow Jones: –173.96 (–0.38%) at 45,947.32
- Nasdaq: –113.16 (–0.50%) at 22,384.70
- S&P 500: –33.25 (–0.50%) at 6,604.72
Hong Kong Stocks
Hong Kong indexes fell across the board. By midday, tech shares weakened broadly with Xiaomi –5%, Alibaba, JD.com, and Kuaishou down over 1%.
Wind power stocks outperformed, with Rui Feng New Energy +8%, after China reported August electricity consumption of 1.015 trillion kWh, the second straight month above 1 trillion and a global first.
EV stocks were active, with XPeng +6%, after announcing entry into Switzerland, Austria, Hungary, Slovenia, and Croatia. The company will roll out its 2025 G6 and G9 models in Europe and launch the P7+ in H1 2026.
Hong Kong Market Technicals:
- Hang Seng Index: –0.65% at 26,312.90
- Hang Seng Tech Index: –1.04% at 6,312.83
- China Enterprises Index: –0.61% at 9,386.93
A50 & A-Shares
Mainland indexes fell in morning trade, with broad-based weakness across sectors. By midday, the Shanghai Composite –0.18%, Shenzhen Component –0.79%, and ChiNext –1.17%. Turnover across Shanghai, Shenzhen, and Beijing totaled RMB 1.38 trillion, down RMB 174 billion from the prior session, with over 2,500 stocks lower.
Leading sectors: wind power equipment, chemical fibers, defense equipment, agricultural chemicals, soybeans.
Lagging sectors: gaming, high-speed copper cabling, lithography, liquid-cooling servers, CPO.
A-Share Market Technicals:
- Shanghai Composite: –0.18% at 3,846.33
- Shenzhen Component: –0.79% at 13,339.82
- ChiNext: –1.17% at 3,198.02
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