Market Recap
On Wednesday, US stocks fell for the second straight session as AI leaders remained under pressure and investors grew cautious about lofty valuations. The S&P 500 lost 0.28%, the Nasdaq slipped 0.33%, and the Dow dropped 0.37%.
Micron briefly lifted sentiment after reporting better-than-expected earnings and strong guidance, with revenue jumping 46% on AI demand. But optimism faded as concerns grew over the sustainability of the AI boom, especially following reports of a deepening circular dependency in the sector linked to Nvidia and OpenAI’s partnership. Fed Chair Jerome Powell also warned on Tuesday that equity valuations are “quite high,” further weighing on risk appetite.
US Stocks
Mega-cap tech was mostly lower:
- Nvidia –0.82%
- Microsoft +0.18%
- Apple –0.83%
- Google –1.80%
- Amazon –0.23%
- Meta +0.70%
- Tesla +3.98%
- Broadcom +0.11%
- Oracle –1.71%
Chinese ADRs rallied, with the Nasdaq Golden Dragon China Index +2.83%:
- Alibaba +8.19%
- JD.com +5.74%
- Pinduoduo +1.90%
- NIO +2.74%
- XPeng +0.38%
- Li Auto +1.60%
- Bilibili +1.94%
- Baidu +5.85%
- NetEase –1.83%
- Tencent Music +1.80%
US Market Technicals:
- Dow Jones: –171.50 (–0.37%) at 46,121.28
- Nasdaq: –75.62 (–0.33%) at 22,497.86
- S&P 500: –18.95 (–0.28%) at 6,637.97
Hong Kong Stocks
Hong Kong markets climbed across the board by midday, led by e-commerce and tech. JD.com rose over 6%, Bilibili and Baidu gained 4%+, Xiaomi added more than 3%, while Kuaishou and Tencent advanced 2%+ and 1%+, respectively.
The non-ferrous metals sector surged after Freeport-McMoRan declared force majeure at its Grasberg copper mine in Indonesia, the world’s second largest. Analysts at Goldman Sachs called the event a “black swan,” forecasting a 500,000-ton copper supply loss over the next 12–15 months and predicting that “copper prices must rise.”
Battery makers extended gains, with CATL +5% at a record high on news it will launch a new high-nickel 8-series battery next year, to be used in range-extended EVs. The company also remains a key supplier to newly listed Chery Automobile in Hong Kong.
Hong Kong Market Technicals:
- Hang Seng Index: +0.43% at 26,633.81
- Hang Seng Tech Index: +1.91% at 6,443.78
- China Enterprises Index: +0.60% at 9,499.43
A50 & A-Shares
Mainland indexes rose broadly in the morning session. The Shanghai Composite added 0.16%, the Shenzhen Component gained 1.14%, and the ChiNext jumped 2.22%. Around 2,000 stocks advanced across the market, with half-day turnover at RMB 1.56 trillion, up RMB 135.5 billion from the previous session.
Leading sectors: gaming, e-commerce, AI applications (video, etc.), controlled nuclear fusion, non-ferrous metals, and high-speed copper cabling.
Lagging sectors: precious metals, ports & shipping, natural gas, tourism & hotels, real estate, logistics, and banks.
A-Share Market Technicals:
- Shanghai Composite: +0.16% at 3,859.62
- Shenzhen Component: +1.14% at 13,508.98
- ChiNext: +2.22% at 3,256.38
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