
US Treasury yields continued to climb, with the 10-year Treasury yield rising by 2.5 basis points to reach 4.051%, briefly hitting 4.057%, close to its August 1 level.
Traders have significantly adjusted their expectations for the Federal Reserve’s monetary policy easing this year. Following the release of the strong September non-farm payroll report, robust employment data reinforced Federal Reserve Chair Jerome Powell’s stance during the post-rate decision press conference.
According to CME’s FedWatch tool, the market no longer anticipates a 50 basis point rate cut at the Fed’s November meeting.
Allianz’s Chief Economic Advisor Mohamed El-Erian remarked on Tuesday that the uncertain outlook for the Fed’s rate cuts is creating significant market volatility as speculation grows about the central bank’s monetary policy path.
Investors will focus on the Federal Reserve’s meeting minutes (to be released at 2 AM Beijing time on Thursday). Additionally, the market will face another test this week with the release of the September US CPI report on Thursday.
Nvidia surged 4%, reaching a new three-month high. Since hitting a low on September 6, Nvidia’s stock has rebounded by 28%, once again surpassing Microsoft in market capitalization, reclaiming its position as the second-largest company globally. At the “AI Summit DC” in Washington, DC, Nvidia executives announced that the company’s next-generation Blackwell chip, with superior energy efficiency, will begin shipping to customers in the fourth quarter of this year.
US Stocks
Fundamental Analysis:
Most large-cap tech stocks rallied: Nvidia rose over 4%, while Apple, Microsoft, Tesla, Meta, and Amazon gained more than 1%. Semiconductor and software application sectors also saw strong performance, with Broadcom climbing over 3%, while Arm and AMD rose more than 1%.
In contrast, the oil, gas, and metals sectors saw declines: Vale, Pan American Silver, Rio Tinto, and Alcoa dropped more than 4%, BP and Southern Copper fell over 3%, and Shell and Exxon Mobil lost more than 2%.
Chinese stocks pulled back after strong gains in recent days. Alibaba fell over 6%, Tencent ADR dropped 8.04%, Baidu slid 7.39%, Pinduoduo declined 5.38%, JD.com lost 7.52%, Netease fell over 5%, NIO and Li Auto both dropped 8.10%, XPeng Motors fell 7.26%, JinkoSolar plummeted 20.69%, Futu Holdings dropped about 13%, and Bilibili lost nearly 13%.
Technical Analysis:

Market Trends:
- Dow Jones: +126.13 points (+0.30%), closed at 42,080.37
- Nasdaq: +259.01 points (+1.45%), closed at 18,182.92
- S&P 500: +55.19 points (+0.97%), closed at 5,751.13
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s three major indexes opened higher but fell by the close. Tech stocks saw widespread declines, with Kuaishou dropping more than 3% and Alibaba down nearly 2%.
Chinese brokerage stocks plunged, with Shenwan Hongyuan falling over 14%, and property stocks continued to decline, with China Vanke down over 7%.
High-speed rail infrastructure stocks were also hit hard, with CRRC down more than 7%, while shipping stocks broadly declined, led by COSCO Shipping Energy, which fell over 8%.
According to a report by CMB International, the sharp fluctuations are part of a normal technical correction after the market’s rapid short-term surge. However, policy support remains strong, keeping the overall upward trend of Hong Kong stocks intact.
As the market correction occurs, more fundamental-driven long positions are expected to enter the market. Following the rollout of additional fiscal policies, as investor sentiment stabilizes, attention will return to fundamentals.
Technical Analysis:

Market Trends:
- Hang Seng Index: -1.39%, closed at 20,635.11
- Hang Seng Tech Index: -0.86%, closed at 4,655.35
- China Enterprises Index: -1.47%, closed at 7,373.63
FTSE China A50 Index
Fundamental Analysis:
Mainland China’s A-shares saw significant adjustments in the morning session. By midday, total market turnover reached 19.6 trillion yuan, down 5.42 trillion yuan from the previous day, with more than 5,000 stocks declining.
Sectors such as gaming and media, photovoltaic cells, biotech, and consumer goods saw the steepest declines. Gaming stocks like Tom Cat, Shunwang Technology, Tianci Culture, Zhongqingbao, and Sentian Network all fell more than 15%.
In the photovoltaic sector, shares of Yicheng New Energy, GoodWe, Jingang PV, and Shichuang Energy plunged by over 15%.
The securities sector was mixed, with stocks like Guohai Securities and Tianfeng Securities hitting the daily limit, while other stocks like Guosheng Financial, Jinlong Securities, CICC, and Huaxi Securities fell by more than 7%.
Technical Analysis:

Market Trends:
- Shanghai Composite Index: -5.30%, closed at 3,304.84
- Shenzhen Component Index: -6.19%, closed at 10,783.40
- ChiNext Index: -7.29%, closed at 2,364.26
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