On Wednesday, US stock market closed with mixed results. The Dow Jones Industrial Average gained approximately 360 points, while tech sector weakness dragged the Nasdaq lower. Rising US Treasury yields continued to pressure technology stocks. Investors are closely watching earnings reports from major banks expected later this week.
The 10-year US Treasury yield reached its highest level since November 2023, while the 30-year yield remained below the critical 5% threshold. The US dollar hit a 26-month high.
Matt Peron, Head of Global Solutions at Janus Henderson, commented:
“If the 10-year Treasury yield reaches 5%, investors will instinctively sell equities. This trend could last for weeks or even months, during which the S&P 500 may decline by as much as 10%.”
US Stock Market Overview
- Semiconductor Stocks Decline:
Micron Technology and AMD dropped over 4%, TSMC fell more than 3%, and Nvidia slid nearly 2%. Following Nvidia CEO Jensen Huang’s statement—reaffirmed by Mark Zuckerberg—that “quantum computing is still far from practical application,” quantum computing-related stocks plummeted:- D-Wave Quantum: -33.62%
- Rigetti Computing: -32.25%
- Quantum Computing: -27.39%
- Quantum Corporation: -23.92%
- Chinese ADR Performance:
Most popular Chinese ADRs fell:- Kingsoft Cloud: -10%
- Miniso: -6%
- New Oriental: -4%
- iQiyi, XPeng: -3%
- Nio, Li Auto: -2%
On the upside: - NetEase: +3%
- TAL Education, Pinduoduo: +1%
- Bilibili, JD.com, Baidu: less than +1%
Technical Analysis of US Market
Market Recap
- Dow Jones: +358.67 points (+0.86%) at 42,297.12
- Nasdaq: -73.53 points (-0.38%) at 19,088.10
- S&P 500: +9.18 points (+0.16%) at 5,836.22
Hong Kong Stock Market Overview
Major Hong Kong indices also closed with mixed results.
- Sector Highlights:
- Tech Stocks: Gains led by Meituan and Alibaba (both up ~1%), with JD.com and Baidu following.
- Automobile Stocks: Mixed performance; Leapmotor rose over 3%, while Nio fell more than 1%.
- Gold Stocks: Broad declines; Zhaojin Mining dropped over 2%.
- CXO Stocks: Strong performance; Wuxi Biologics climbed over 3%.
Technical Analysis of Hong Kong Market
Market Recap
A-Shares Market Overview
China’s A-shares posted strong gains across the board, with the combined turnover of Shanghai, Shenzhen, and Beijing exchanges reaching ¥816.165 billion. A total of 5,341 stocks advanced, while 101 declined and 16 remained unchanged.
- Top Performing Sectors:
- AI-driven e-commerce
- Whale-motion advertising
- Tesla’s Cybertruck and “electric off-road toy car” concepts
- TikTok’s international expansion
- Energy storage and fire safety
- High-voltage direct current (HVDC) transmission
- Underperforming Sectors:
- Beverages
- GPUs
- Gold and silver
- Electrode foils
Technical Analysis of China Market
Market Recap
- Shanghai Composite Index: +1.75%, closing at 3,216.0
- Shenzhen Component Index: +2.42%, closing at 10,033.42
- ChiNext Index: +2.68%, closing at 2,035.55
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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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