Market Recap
On Wednesday, US stocks closed higher, with the Dow Jones Industrial Average gaining more than 500 points. Market sentiment improved as President Trump began his second term, with his remarks on tariffs and international trade perceived as less aggressive than initially feared.
Trump is set to announce a significant investment in AI infrastructure, backed by OpenAI, SoftBank, and Oracle.
The market continues to monitor the impact of Trump’s policies. On Wednesday, Trump signed an executive order at the White House and spoke on tariffs. He indicated plans to impose a 25% tariff on Mexico and Canada, effective February 1, citing border policy concerns.
Robert Sockin, Senior Global Economist at Citibank, stated in a report:
“Asset prices in 2025 will be heavily influenced by Trump’s policy direction. Uncertainty is likely to remain a hallmark of his presidency.”
US Market Highlights
Key Market Movers
- Tech Stocks: Major tech stocks were mostly higher. Nvidia and Amazon rose over 2%, Alphabet climbed more than 1%, while Apple declined by over 3%.
- Netflix: Surged over 11% after hours, boosted by better-than-expected Q4 earnings and an optimistic outlook for next year.
- Oracle: Gained more than 7% following reports of its partnership with OpenAI and SoftBank to invest in AI infrastructure.
Chinese ADRs showed mixed performance:
- Gainers: XPeng (+6%), Li Auto (+5%), Futu Holdings (+4%), iQIYI (+2%).
- Decliners: New Oriental (-23%), TAL Education (-6%), NIO (-4%), JD.com and Pinduoduo (-1%).
Technical Analysis of US Market
Market Snapshot
- Dow Jones: +537.98 points (+1.24%), closing at 44,025.81.
- NASDAQ: +126.58 points (+0.64%), closing at 19,756.78.
- S&P 500: +52.58 points (+0.88%), closing at 6,049.24.
Hong Kong Market Highlights
Hong Kong stocks opened lower and extended losses throughout the session. Tech stocks broadly declined, with:
- JD.com: -4%, Meituan: -3%, Alibaba: -3%.
- Real Estate Stocks: Weakened significantly, with Country Garden falling over 13%.
- Automotive Stocks: Pulled back, with NIO down nearly 5%.
- Semiconductor Stocks: Continued their upward momentum, led by SMIC (+2%).
New Oriental plunged 25% following earnings results.
Semiconductor Trends:
Guotai Junan Securities noted that AI applications and localization efforts will drive the semiconductor market upward through 2025. Generative AI innovations are expected to dominate, with demand for AI smartphones, AI PCs, and other end-user devices spurring chip demand and expanding the semiconductor market.
Technical Analysis of Hong Kong Market
Market Snapshot
- Hang Seng Index: -1.34%, closing at 19,836.39.
- Hang Seng Tech Index: -1.97%, closing at 4,601.09.
- China Enterprises Index: -1.59%, closing at 7,204.79.
A50 & China A-Share Market Highlights
A-shares opened lower, but gradually recovered during the session. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets reached ¥741.3 billion, with 4,300 stocks declining, 1,054 advancing, and 110 unchanged.
Top Gainers by Sector:
Grinding machines, liquid-cooled data centers, computing power rentals, data center cooling, HDI, AI servers, chip packaging, AMD-related concepts, data collection, and server manufacturing.
Top Decliners by Sector:
Infant toys, Xiaohongshu-related stocks, event management, Huawei robotics, water heaters, AI e-commerce, traffic marketing, household ceramics, REITs, and property management.
Technical Analysis of China Market
Market Snapshot
- Shanghai Composite: -0.84%, closing at 3,215.37.
- Shenzhen Component Index: -0.76%, closing at 10,226.98.
- ChiNext Index: -0.58%, closing at 2,100.17.
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Disclaimer
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