Market Recap
US stocks closed lower on Thursday after the Nasdaq and S&P 500 touched fresh intraday record highs but later pulled back. Traders focused on the ongoing earnings season, looking for confirmation that the AI boom can sustain Wall Street’s record rally. Several Federal Reserve officials delivered remarks, with New York Fed President John Williams signaling support for more rate cuts this year.
PepsiCo and Delta Air Lines reported Q3 earnings before the bell, while banking giants Goldman Sachs and Citigroup are set to report next week. Among the “Magnificent Seven” tech giants, Tesla will be the first to announce results on October 22, followed by Alphabet, Microsoft, and Meta Platforms on October 29.
In separate appearances, Fed Chair Jerome Powell, Michelle Bowman, and Mary Daly were also scheduled to speak Thursday.
New York Fed’s Williams, a permanent FOMC voting member, said he supports further rate cuts this year, though the exact scale “remains to be seen.”
US Stocks
By market cap at the close:
NVIDIA +1.83%, Microsoft −0.47%, Apple −1.56%, Alphabet-C −1.32%, Amazon +1.12%, Meta +2.18%, Broadcom −0.14%, TSMC −1.52%, Tesla −0.72%, Berkshire Hathaway-A −0.68%, Oracle +3.06%, JPMorgan +0.49%.
Chinese ADRs mostly declined, with the Nasdaq Golden Dragon China Index falling 2.03%.
At the close: Alibaba −4.11%, JD.com −2.89%, Baidu −3.99%, Pinduoduo −1.88%, Bilibili +2.91%, NIO −4.97%, NetEase −1.49%, Futu −2.6%, Li Auto −4.18%, Xpeng −5.29%, EHang −0.64%, Tuya +4.26%, Canadian Solar +11.76%.
US Stocks Snapshot:
- Dow Jones −243.36 pts (−0.52%) to 46,358.42
- Nasdaq −18.75 pts (−0.08%) to 23,024.63
- S&P 500 −18.61 pts (−0.28%) to 6,735.11
Hong Kong Stocks
Hong Kong equities opened lower and extended declines by midday. Tech stocks led losses: Baidu −5%, Kuaishou −4%, Alibaba −3%, Lenovo, Xiaomi, and Tencent −2% each.
Gold miners also fell sharply, with China Gold International −7%, after spot gold slipped below $3,960/oz, down nearly $100/oz from recent highs, and COMEX gold futures dropped 1.95%.
Reports confirmed that Israel and Hamas reached a ceasefire deal, with Israel’s government officially approving the Gaza ceasefire early Thursday local time.
Automakers weakened broadly, with NIO −4%. As of early October, leading Chinese automakers such as BYD, SAIC, and Geely have achieved over 70% of their annual sales targets, highlighting a growing divergence among top carmakers.
Market Snapshot:
- Hang Seng Index −1.14% to 26,447.86
- Hang Seng Tech Index −2.45% to 6,312.81
- China Enterprises Index −1.20% to 9,415.73
A50 Index
Mainland A-shares opened lower and continued to fall through midday. The Shanghai Composite −0.51%, Shenzhen Component −1.85%, ChiNext −3.4%, and Beijing 50 −0.8%.
Half-day turnover across Shanghai, Shenzhen, and Beijing totaled 1.66 trillion yuan, down 70.8 billion yuan from the previous session, with over 2,300 stocks declining.
Leading sectors: gas utilities, textiles, power grid equipment, coal, cement, and dairy.
Lagging sectors: precious metals, semiconductors, solid-state batteries, photovoltaics, and computing hardware.
Market Snapshot:
- Shanghai Composite −0.51% to 3,913.80
- Shenzhen Component −1.85% to 13,471.74
- ChiNext −3.4% to 3,150.78
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