Market Recap
On Tuesday, US stocks closed higher, with the Nasdaq setting fresh intraday and closing record highs. Investors now turn their attention to a busy week of key economic data, including the August PPI and CPI reports—two critical indicators for inflation.
Recent weak US labor data has reinforced expectations for a rate cut at the upcoming Federal Reserve meeting, with markets pricing in a near-certainty of policy easing this month.
The PPI report is due Wednesday morning, followed by the CPI release on Thursday, both of which will provide deeper insight into the health of the US economy.
Last Friday’s disappointing nonfarm payrolls report added to the dovish outlook, with traders assigning a growing probability of a 50-basis-point rate cut in September, according to the FedWatch tool.
Standard Chartered noted that “the door for a 50-basis-point cut is now open.” The bank expects the Fed to deliver such a move next week, citing sluggish August job growth and the highest unemployment rate since 2021.
Stock Highlights:
AppLovin surged nearly 12% after news that the stock will be added to the S&P 500 index.
US Stocks
Mega-cap tech names mostly rose, with Amazon gaining more than 1% while Apple slipped 0.74%. Chipmakers advanced broadly, led by Broadcom (+3%), ASML, TSMC, and Western Digital, each up more than 1%.
Chinese ADRs surged, with the Nasdaq Golden Dragon China Index up 2.12%. NetEase jumped over 7%, Baidu gained more than 6%, JD.com and Alibaba rose more than 4%, and Xpeng and NIO advanced more than 3%. 36Kr soared 92.75% after multiple trading halts.
US Market – Technical Analysis
US Market Snapshot
- Dow Jones: +114.09 points (+0.25%) to 45,514.95
- Nasdaq: +98.31 points (+0.45%) to 21,798.70
- S&P 500: +13.65 points (+0.21%) to 6,495.16
Hong Kong Stocks
Hong Kong’s major indexes advanced across the board. Tech names were broadly higher, with Kuaishou and NetEase up over 3%, JD.com, Alibaba, and Bilibili climbing more than 2%, and Xiaomi gaining 1%, while Meituan slipped more than 2%.
Property developers rallied sharply, with Country Garden soaring over 27%. Gold miners strengthened, led by Chifeng Gold up more than 13%. Brokerage stocks were active, with Orient Securities up over 3%. New consumption plays also rose, with Giant Biogene up more than 6%. Aviation Industry Corporation of China jumped over 21% on debut.
Gold miners extended gains as spot gold broke above $3,650 per ounce, setting a new record. Goldman Sachs warned in a report that if the Fed’s credibility weakens, even a small shift of Treasuries into gold could push prices near $5,000 per ounce.
Hong Kong Market – Technical Analysis
HK Market Snapshot
- Hang Seng Index: +0.80% at 25,839.36
- Hang Seng Tech Index: +1.03% at 5,813.08
- China Enterprises Index: -0.80% at 9,203.83
A50 & A-Shares
Mainland Chinese stocks fell, with all three major indexes in negative territory by midday. Combined turnover on the Shanghai and Shenzhen exchanges reached RMB 1.32 trillion, with more than 4,000 stocks declining.
Sector Highlights:
- Gold-related stocks were active.
- Lithium, auto, and real estate sectors saw moderate gains.
- Telecom, food & beverage, and internet sectors faced pressure.
China Market – Technical Analysis
China Market Snapshot
- Shanghai Composite: -0.29% at 3,815.61
- Shenzhen Component: -0.89% at 12,553.99
- ChiNext Index: -1.77% at 2,881.31
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