Market Recap
On Monday, US stocks rose for a second consecutive session, with all three major indexes posting gains. Nvidia led tech higher, helping offset concerns about the sustainability of the recent AI-driven rally.
This week, markets are focused on the risk of a US government shutdown and Friday’s September nonfarm payrolls report, which could shape expectations for Fed policy.
Last week, equities fell as cracks appeared in one of the bull market’s key drivers, AI enthusiasm. Nvidia’s eye-popping $100 billion partnership with OpenAI raised questions about the sustainability of growth.
Adam Crisafulli, founder of Vital Knowledge, noted: “The market narrative turned slightly negative last week as investors questioned two key assumptions underpinning the rally: the durability of the AI infrastructure boom, and the inevitability of an aggressive Fed easing cycle.”
Analysts said Wall Street may need another “just right” jobs report, strong enough to avoid recession worries but not so hot as to push the Fed back toward hawkishness.
US Stocks
Large-cap tech stocks were mixed:
- Nvidia +2.07%
- Microsoft +0.61%
- Apple –0.40%
- Google C –1.14%
- Amazon +1.09%
- Meta –0.05%
- Broadcom –1.98%
- Tesla +0.64%
Chinese ADRs mostly gained:
- Pony.ai +7.32%
- Bilibili +4.75%
- Alibaba +4.65%
- New Oriental +4.38%
- Li Auto +3.57%
- JD.com +3.30%
- Baidu +2.68%
- NIO +2.41%
- XPeng +1.76%
- TAL Education +0.63%
- Pinduoduo +0.52%
- Tencent Music +0.42%
US Market Technicals:
- Dow Jones: +68.78 (+0.15%) at 46,316.07
- Nasdaq: +107.09 (+0.48%) at 22,591.15
- S&P 500: +17.51 (+0.26%) at 6,661.21
Hong Kong Stocks
Hong Kong markets were mixed by midday. Tech names diverged, with Bilibili +4% while Meituan –0.5%.
Semiconductors surged, led by Hua Hong Semiconductor +12%, after DeepSeek unveiled its V3.2-Exp model featuring a sparse attention architecture to cut costs by 50%. Just minutes later, Cambricon announced compatibility and open-sourced its inference engine.
Battery stocks also climbed, with CATL +3%. State media reported soaring demand for energy storage cells, with factories running at full capacity and orders stretching into 2025. China’s energy plan aims for 180 GW of new storage capacity by 2027, driving over 250 billion yuan in investment.
Hong Kong Market Technicals:
- Hang Seng Index: –0.10% at 26,596.90
- Hang Seng Tech Index: +0.55% at 6,358.85
- China Enterprises Index: –0.13% at 9,442.17
A50 & A-Shares
Mainland markets gained across the board. By midday, the Shanghai Composite +0.40%, Shenzhen +0.31%, and ChiNext +0.06%. Turnover across Shanghai, Shenzhen, and Beijing reached RMB 1.37 trillion, up RMB 76.1 billion from the prior session, with over 2,900 stocks advancing.
Leading sectors: semiconductors, energy metals, storage chips.
Lagging sectors: large financials.
A-Share Market Technicals:
- Shanghai Composite: +0.40% at 3,878.13
- Shenzhen Component: +0.31% at 13,521.11
- ChiNext: +0.06% at 3,240.02
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