Market Recap
On Thursday, US stocks rallied, with the Dow, Nasdaq, S&P 500, and Russell 2000 all hitting fresh intraday and closing highs. The Federal Reserve signaled the start of an easing cycle this week, boosting investor confidence and fueling expectations of stronger economic growth.
Big tech stocks joined the rally. Intel soared 22.77% after Nvidia announced a $5 billion investment in Intel to co-develop data center and PC chips. Nvidia also gained more than 3.5%.
The surge followed a volatile Wednesday session, when the Fed cut rates by 25 basis points as expected. Policymakers projected two more cuts this year, encouraging investors anticipating continued monetary easing.
Traders largely dismissed Fed Chair Jerome Powell’s description of the move as part of “risk management,” instead interpreting the pivot as a shift toward prioritizing growth over inflation concerns.
US Stocks
- Intel +22.77%
- Nvidia +3.5%
- AMD –0.78%
- Applied Materials, ASML +6%+
- Micron +5%
- Cybersecurity firm Netskope jumped 18% on its US IPO debut
Chinese ADRs fell, with the Nasdaq Golden Dragon China Index down 1.79%.
- NetEase –4%
- Bilibili –3%
- Weibo, Li Auto, Alibaba –2%+
US Market Technicals
- Dow Jones: +124.10 (+0.27%) at 46,142.42
- Nasdaq: +209.40 (+0.94%) at 22,470.73
- S&P 500: +31.61 (+0.48%) at 6,631.96
Hong Kong Stocks
Hong Kong indexes closed higher. Tech shares rose broadly, with JD.com +3%, Lenovo +2%, Alibaba +1%, while NetEase slipped –1%. Non-ferrous metals outperformed, with Ganfeng Lithium +10%. Gold miners climbed, Shandong Gold +5%.
Casino stocks also advanced, with Wynn Macau +5%. Analysts noted that the Fed’s rate cut marks the formal entry into an easing cycle, which could present opportunities for metals.
CICC highlighted that gold typically follows a “rise, pullback, long-term benefit” pattern during easing cycles. While a short-term pullback risk exists, long-term value remains. If geopolitical risks or recession materialize, gold could resume its upward trend.
Hong Kong Market Technicals
- Hang Seng Index: +0.12% at 26,576.59
- Hang Seng Tech Index: +0.62% at 6,310.08
- China Enterprises Index: +0.35% at 9,489.49
A50 & A-Shares
Mainland indexes were mixed at midday.
- Shanghai Composite: –0.03% at 3,830.65
- Shenzhen Component: +0.32% at 13,117.47
- ChiNext Index: +0.16% at 3,100.94
- Beijing 50: +0.04%
Half-day turnover across Shanghai, Shenzhen, and Beijing reached RMB 1.51 trillion, RMB 209.6 billion lower than the previous session, with more than 3,400 stocks down.
Top-performing sectors: energy metals, lithography, cinema chains, construction machinery, logistics, defense equipment, and memory chips.
Lagging sectors: humanoid robots, PEEK materials, real estate, paper, and diversified finance.
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