Market Recap
US stocks closed higher on Monday, led by a strong rebound in tech shares. The Nasdaq surged over 500 points as optimism grew that the historic US government shutdown, now past 40 days, may soon end. Lawmakers advanced a funding bill through the Senate, signaling progress toward reopening the government.
The compromise funding measure passed its first procedural vote late Sunday, with prediction markets now assigning an 88% probability that the shutdown will end this week. House Speaker Mike Johnson said a vote could take place as early as Wednesday, depending on the Senate’s progress.
Chris Zaccarelli, CIO at Northlight Asset Management, noted: “This shutdown lasted far longer than markets expected. Investors were increasingly concerned about flight cancellations and missing economic data.”
US Markets
Tech giants staged a powerful comeback after recent weakness:
- Nvidia +5.8%
- Palantir +8.8%
- Tesla +3.7%
- Google A +4%
- Microsoft +1.85%
- Amazon +1.63%
Chinese ADRs also climbed, with the Nasdaq Golden Dragon China Index up 2.25%.
- XPeng Motors +16%
- Baidu +5%
- UP Fintech +3%
- Weibo +3%
- iQIYI +2%
- Pinduoduo +1%
Market Snapshot:
- Dow Jones: +381.53 pts (+0.81%) → 47,368.63
- Nasdaq: +522.64 pts (+2.27%) → 23,527.17
- S&P 500: +103.63 pts (+1.54%) → 6,832.43
Hong Kong Markets
Hong Kong stocks opened higher but pared gains by the close.
- Hang Seng Index: -0.20% to 26,595.97
- Hang Seng Tech Index: -0.25% to 5,900.92
- China Enterprises Index: -0.32% to 9,412.57
Tech stocks mostly slipped, with Meituan, Alibaba, and JD.com down over 2%, while Baidu rose more than 3%.
XPeng Motors soared over 15%, buoyed by optimism over its AI and Robotaxi ambitions.
Citi noted that XPeng is in the early stages of scaling its new business model, which could push its valuation beyond traditional EV peers.
Deutsche Bank added that XPeng is “taking a major step toward becoming a global leader in embodied AI.”
Real estate shares were also active, Logan Group gained over 2% as UBS economists suggested that easing mortgage rates and inventory reforms could help stabilize China’s property sector.
A50 & Mainland China
Mainland Chinese equities slipped as turnover fell to ¥1.27 trillion, down ¥186 billion from the previous session.
- Shanghai Composite: -0.38% to 4,003.17
- Shenzhen Component: -0.52% to 13,357.43
- ChiNext Index: -0.74% to 3,155.29
Leading gainers included lab-grown diamonds, solar equipment, battery chemicals, and nonferrous metals.
Losers were coal mining, insurance, AI computing, and brokerage stocks.
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