On Thursday, US stocks opened higher and continued to rise, with all three major indices closing in the green. The Dow Jones Industrial Average and S&P 500 both reached new record highs, with the Dow gaining over 500 points and the S&P 500 closing above 5700 for the first time.

Earlier, the Federal Reserve announced a 50 basis point rate cut, lowering the target range from 5.25% – 5.5% to 4.75% – 5%. This marked the Fed’s first rate cut in four years, and the size of the cut took some investors by surprise.

US Treasury Secretary Janet Yellen commented on Thursday that the Fed’s rate cut is a “very positive signal” for the state of the US economy, reflecting progress in reducing inflation and a commitment to protecting the labor market.

Meanwhile, data released by the US Labor Department showed that initial jobless claims fell by 12,000 to 219,000 last week, marking the lowest level since May. This suggests the US labor market remains healthy, easing concerns of an economic recession.

With the Fed’s rate cut now official, both Hong Kong stocks and US-listed Chinese companies experienced a surge. As of Thursday’s midday trading, the Hang Seng Tech Index had risen for eight consecutive days, with a cumulative gain of over 8%. The Hang Seng Index also climbed for the fifth consecutive day, reclaiming the 18,000-point threshold.

US Stocks

Fundamental Analysis: 

Major tech stocks broadly advanced. Tesla surged over 7%, marking its highest close since late July; Nvidia, Apple, and Meta each rose over 3%, while Netflix climbed more than 2%. Intel, Microsoft, Google, and Amazon all posted gains of more than 1%.

Semiconductor, chip, and banking stocks led the charge, with ASML, TSMC, and AMD all rising over 5%, while GlobalFoundries climbed more than 4%, and Broadcom, Qualcomm, Goldman Sachs, and Bank of America advanced over 3%.

Mobileye soared nearly 15%, marking its biggest single-day gain since June 7. Meanwhile, Skechers plunged nearly 10%, its largest single-day drop in seven months.

US-listed Chinese stocks saw broad gains, with the Nasdaq Golden Dragon China Index climbing 4.15%. Futu Holdings surged nearly 14%, while XPeng and Zeekr jumped over 8%.

NIO rose more than 7%, JD.com and Bilibili climbed over 6%, and Tencent Music, Alibaba, and Vipshop gained over 4%. Baidu, Li Auto, and Pinduoduo were up more than 2%, while iQIYI, Full Truck Alliance, NetEase, and Weibo rose over 3%.

Technical Analysis: 

Market Trends: 

• Dow Jones: Up 522.09 points, or 1.26%, to 42,025.19
• Nasdaq: Up 440.68 points, or 2.51%, to 18,013.98
• S&P 500: Up 95.38 points, or 1.70%, to 5,713.64

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s three major indices rose across the board. Tech stocks were generally strong, with Alibaba and NetEase up over 2%, Meituan and Xiaomi rising around 1%, while Tencent slipped more than 0.4%.

Property stocks continued their rally, with Midea Real Estate jumping 10%, while oil stocks also showed strong momentum, with PetroChina rising nearly 3%. Sportswear stocks surged, with Li Ning and Anta Sports both climbing over 4%.

Automaker stocks also performed well, with XPeng leading the charge, rising over 8%. In related news, amid China’s commerce minister’s visit to Europe, the EU is reportedly delaying its vote on imposing tariffs on Chinese electric vehicle imports.

According to reports, three EU diplomats indicated that a vote scheduled for September 25 has been canceled, though no reason was provided for the postponement and no new date has been set.

Technical Analysis: 

Market Trends: 

• Hang Seng Index: Up 1.45%, closing at 18,275.14
• Hang Seng Tech Index: Up 1.80%, closing at 3,717.17
• China Enterprises Index: Up 1.47%, closing at 6,397.98

FTSE China A50 Index

Fundamental Analysis: 

A-shares saw mixed performance in early trading. By midday, total market turnover reached 347.3 billion yuan, down by 80.5 billion yuan from the previous session. Over 3,500 individual stocks declined.

Sector-wise, Huawei-related stocks, cybersecurity, digital infrastructure, and real estate were among the top performers, while shipbuilding, photovoltaic equipment, and innovative drug stocks lagged.

On the board, digital infrastructure stocks surged with multiple stocks hitting the daily limit, including Nanjing Inform, Topsec Technologies, and Tongda Network. Huawei-related stocks also led gains, with Changshan Beiming and Talkweb Information surging by the daily limit, while Ren Zixing and Yinzhijie gained more than 15%.

SOE reform stocks remained active, with Baobian Electric posting its 13th daily limit up in 9 sessions. In contrast, shipbuilding stocks slumped, with China CSSC and China Shipbuilding losing more than 6%, while photovoltaic stocks continued to drop, led by declines in Tongwei and GoodWe.

Technical Analysis: 

Market Trends: 

• Shanghai Composite Index: Down 0.23%, closing at 2,729.69
• Shenzhen Component Index: Down 0.44%, closing at 8,052.35
• ChiNext Index: Down 0.80%, closing at 1,534.06

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Disclaimer
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