The three major U.S. indices closed with mixed results. The Dow Jones Industrial Average (Dow) fell by 0.2%, while the Nasdaq rose by 0.29%, and the S&P 500 increased by 0.13%. Most popular Chinese concept stocks experienced declines. 

The surge in oil prices has led to further acceleration in U.S. inflation. In August, the Consumer Price Index (CPI) increased by 3.7% year-on-year, exceeding economists’ expectations. This marks the second consecutive month of rebound. 

The core CPI, which excludes food and energy costs, also grew by 4.3% year-on-year, in line with expectations. However, the monthly growth rate was 0.3%, still higher than analysts’ expected 0.2%. This suggests that persistent inflation could lead the Federal Reserve to maintain higher interest rates for a longer period, possibly even raising rates again by year-end. 

U.S. Stocks 

Fundamental Analysis: 

3M saw its stock price drop by over 5%, making it the biggest decliner among the Dow 30 components. Caterpillar declined by 2%. Apple’s stock price fell for the second consecutive day, dropping over 1% after unveiling a series of new products, including the iPhone 15, on Tuesday. 

Tesla rose by over 1%, benefiting from bullish investor sentiment, notably from Ron Baron. Amazon surged by more than 2.5%, reaching its highest price since August 2022. 

Citigroup announced a business restructuring on Wednesday, including management changes and layoffs, leading to a more than 1% increase in its stock price. The EU announced an anti-subsidy investigation into Chinese electric vehicles, causing declines of over 3% for XPeng, over 4% for NIO, and over 0.5% for Lucid Motors. 

Moderna released the results of its third-phase clinical trial for a flu vaccine, initially rising by over 5% and closing with a 3.2% gain. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average Dow closed down by 70.46 points, a 0.2% decrease, at 34,575.53. 
• Nasdaq Composite Index rose by 39.97 points, a 0.29% increase, closing at 13,813.59. 
• S&P 500 Index increased by 5.54 points, a 0.12% increase, closing at 4,467.44. 

Hong Kong Stocks 

The three major indices in the Hong Kong stock market opened higher but later saw declines.  

In terms of individual stocks, core tech stocks generally declined, with Baidu, Meituan, and NetEase all falling by less than 1%.  

Most automotive stocks declined, with XPeng falling by over 2% and Lucid Motors rising by over 1%. Real estate stocks collectively retreated, led by China Evergrande, which fell by over 9%.  

Coal stocks continued their upward trend, with Yanzhou Coal Energy surging by over 4%.  

Gold stocks led the gains, with China Gold International rising by nearly 6%. The logistics, oil, and education sectors showed active performance. 

Xiaomi Group rose against the trend by over 2%. In terms of news, Xiaomi is set to release two new models in its Xiaomi 14 series in early November, positioning them as competitors to the iPhone 15 Pro/ProMax.  

Xiaomi has already begun mass production. Additionally, on September 13th, Huawei and Xiaomi announced a global cross-patent licensing agreement covering communication technologies, including 5G. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell by 0.22%, closing at 17,969.38. 
• Hang Seng Tech Index (HSTECH) increased by 0.01%, closing at 4,041.65. 
• Hang Seng China Enterprises Index (HSCEI) dropped by 0.02%, closing at 6,234.57. 

FTSE China A50 Index 

Fundamental Analysis: 

The three major A-share indices in China opened with mixed movements. After the opening, the Shanghai Composite Index experienced slight fluctuations, falling into a sideways trend.  

The Shenzhen Component Index and the ChiNext Index initially weakened, with the ChiNext Index hitting a new low for the year, testing the 2,000-point psychological barrier.  

Funds favored high-priced stocks, with Jereh Technologies hitting the 10% limit for 12 consecutive days, Lida Xing rising for 7 consecutive days, Unigroup Guoxin rising for 5 consecutive days, and Tonghua Golden-Horse rising for 4 consecutive days. 

In terms of industry sectors, precious metals, communication equipment, coal, traditional Chinese medicine, and banking led the gains, while engineering consulting services, electronic chemicals, semiconductors, real estate services, and professional services led the declines.  

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) increased by 0.04%, closing at 3,124.43. 
• Shenzhen Component Index (SZCOMP) fell by 0.45%, closing at 10,210.11. 
• ChiNext Index (CHINEXT) dropped by 0.74%, closing at 2,019.18. 
• SSE STAR Market 50 Index (SSE50) declined by 0.59%, closing at 883.9. 
  
  

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