
On Monday, US stocks closed lower, with the Dow dropping nearly 400 points. Rising US Treasury yields and oil prices put pressure on stock indices, with the 10-year Treasury yield surpassing 4% for the first time since August.
Following Friday’s non-farm payroll report, which showed a sharp increase in job growth, US Treasury yields climbed, dampening expectations for a significant Fed rate cut in November.
According to the CME FedWatch Tool, traders are now pricing in an 85.9% chance of a 25-basis-point rate cut at the Fed’s next meeting, up from 47% just a week ago, with a 14.1% chance of no cut at all.
St. Louis Fed President Mussa Lem commented on Monday, stating that as the economy continues on a healthy path, he supports further rate cuts but emphasized that the Fed must proceed cautiously and avoid over-easing monetary policy.
In other news, Warren Buffett continues to trim his holdings in Bank of America. According to the latest SEC filings, Berkshire Hathaway sold 9.571 million shares of Bank of America over three consecutive trading days in October, cashing out approximately $383 million. This marks the 14th round of Bank of America stock sales disclosed by Berkshire since mid-July, with Buffett having cashed out over $10 billion in total.
In China, A-shares opened significantly higher on the first trading day after the National Day holiday. Within just 20 minutes of market opening, the total turnover in Shanghai, Shenzhen, and Beijing exceeded 1 trillion yuan, while the Hong Kong market saw a sharp pullback.
US Stocks
Fundamental Analysis:
Most major tech stocks weakened, with Apple down 2.25%, Microsoft down 1.57%, Amazon down 3.06%, Meta down 1.87%, Alphabet-A down 2.44%, and Tesla down 3.7%. Nvidia, however, closed up 2.24%.
Chinese stocks listed in the US staged a “V-shaped” recovery, with the Nasdaq Golden Dragon China Index closing up 0.07%. Alibaba rose 2.61%, Tencent ADR gained 2.6%, Baidu increased 3.63%, Pinduoduo fell 0.76%, JD.com gained 0.23%, EHang surged 21.40%, Canadian Solar climbed 10.29%, JinkoSolar rose 9.45%, Li Auto jumped 4.18%, and XPeng Motors gained 2.11%.
Technical Analysis:

Market Trends:
- Dow Jones: -398.51 points (-0.94%) to 41,954.24
- Nasdaq: -213.95 points (-1.18%) to 17,923.90
- S&P 500: -55.13 points (-0.96%) to 5,695.94
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s three major indices saw sharp declines. Tech stocks led the selloff, with Bilibili falling nearly 15%, Meituan down over 9%, and JD.com dropping more than 8%. Real estate stocks also tumbled, with Agile Group plummeting 25%.
Semiconductor stocks were among the hardest hit, with SMIC falling more than 8%. Other sectors, including online healthcare, CRO (Contract Research Organizations), and catering, also saw significant declines.
Chinese brokerage stocks led the market decline, with China International Capital Corporation (CICC) dropping nearly 25%.
In a report published on October 6, JPMorgan stated that after the A-shares market opens, Hong Kong-listed real estate, consumer, and financial stocks may see a pullback, but noted that this would be a healthy correction. With more individual investors entering the A-shares market, its performance could surpass that of the Hong Kong market.
Technical Analysis:

Market Trends:
- Hang Seng Index: -5.58% to 21,810.00
- Hang Seng Tech Index: -7.87% to 4,962.45
- Hang Seng China Enterprises Index: -6.13% to 7,820.40
FTSE China A50 Index
Fundamental Analysis:
Mainland China’s A-shares saw massive volatility and strong turnover on the first trading day after the holiday. By midday, the total market turnover reached 2.5025 trillion yuan, an increase of 832.6 billion yuan compared to the previous day, with over 5,000 stocks posting gains.
On the sector front, semiconductor chips, photovoltaic cells, defense, and AI computing power sectors led the gains. Early in the session, the three major indices surged, with the Shanghai Composite Index rising over 10%, before retreating throughout the morning.
The index’s gains narrowed to 1% at its lowest point, but rallied again just before the lunch break. Semiconductor stocks led the rally, with multiple stocks such as Cambricon, SMIC, Hua Hong Semiconductor, and Beijing Kingsoft achieving the 20% daily limit.
After an early pullback, securities stocks rebounded strongly, with China Securities, Southwest Securities, Huatai Securities, and Dongxing Securities hitting their daily limits.
Technical Analysis:

Market Trends:
- Shanghai Composite Index: +4.81% to 3,496.82
- Shenzhen Component Index: +8.25% to 11,398.95
- ChiNext Index: +14.26% to 2,485.34
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