Market Recap

On Wednesday, Nvidia smashed earnings expectations but the U.S. markets closed mixed, with the S&P 500 and Nasdaq snapping a four-day losing streak. However, the Federal Reserve’s preferred recession indicator flashed another warning sign. The 10-year U.S. Treasury yield dipped below the 3-month Treasury yield, triggering an inverted yield curve, a historically reliable predictor of economic downturns.

Nvidia’s Q4 Earnings Blowout
Nvidia reported stellar Q4 earnings for fiscal year 2025, smashing analyst expectations:

• Revenue: $39.33 billion (+78% YoY, +12% QoQ)
• Net Profit: $22.09 billion (+80% YoY, +14% QoQ)
• Adjusted Net Profit: $22.07 billion (+72% YoY, +10% QoQ)

Nvidia’s full-year revenue and earnings also exceeded forecasts, and its Q1 2026 outlook came in above estimates, fueling a post-market surge of over 2%.e for February, falling to 98.3—below the expected 102.3—further signaling economic concerns. Investors are now looking ahead to Friday’s PCE Price Index, the Fed’s preferred inflation gauge.

US Markets Highlights

Tech stocks saw mixed performance, with chip stocks leading gains while consumer staples and aerospace stocks lagged:

• Winners:
  • Broadcom (+5%) | Meta (+2%) | Super Micro Computer (+12%)
  • Navitas Semiconductor (+8%) | Micron (+4%)
• Losers:
  • Apple (-2%) | Tesla (-4%)
  • Virgin Galactic (-5%) | Hershey (-4%) | Mondelez (-3%)
  • Boeing (-3%)

Chinese Stocks

The Nasdaq Golden Dragon China Index surged 3.66%, with EV makers leading the rally:

• Gaotu (+32%) | XPeng (+15%) | Nio, Li Auto (+10%)
• Up Fintech, Futu (+9%) | JD.com (+6%) | Alibaba (+4%)

US Markets – Technical Analysis

US Markets Performance

• Dow Jones: ▼ 188.04 pts (-0.43%) to 43,433.12
• Nasdaq: ▲ 48.88 pts (+0.26%) to 19,075.26
• S&P 500: ▲ 0.81 pts (+0.01%) to 5,956.06

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Hong Kong Markets Surge as Alibaba Leads

Hong Kong stocks fell across the board, with tech and brokerage stocks leading declines:

• Tech Slump: Xiaomi (-7%) | Bilibili, Lenovo (-5%) | Kuaishou (-3%)
• Brokerage Weakness: China Galaxy Securities, CICC (-6%)
• Bright Spot: Naixue Tea (+37%), boosted by IPO hype around competitor Mixue, which attracted record-breaking investor interest.

Hong Kong Market – Technical Analysis

Hong Kong Market Performance

• Hang Seng Index: ▼ 1.06% to 23,535.8
• Hang Seng Tech Index: ▼ 2.50% to 5,805.13
• China Enterprises Index: ▼ 1.52% to 8,658.97

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Mainland China Markets Highlights

A-shares opened slightly higher but slid lower, with nearly 4,000 stocks declining across the board.

• Top Gainers: Conductive agents, battery stocks, restaurant chains
• Top Losers: Cybertruck-related stocks, thermal materials, Tesla suppliers

China Markets – Technical Analysis

China Indices Performance

• Shanghai Composite: ▼ 0.41% to 3,366.45
• Shenzhen Component: ▼ 0.76% to 10,872.55
• ChiNext Index: ▼ 1.14% to 2,242.40

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Disclaimer

This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it. 
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