U.S. stocks closed lower on Wednesday, with tech stocks leading the losses. In the upcoming Thursday and Friday, CPI and PPI inflation data will be released. 

U.S. Stocks 

Fundamental Analysis: 

As of the Tuesday closing, the benchmark S&P 500 index has fallen on five out of the past six trading days. The index dropped 2.3% last week, marking the largest weekly decline since the turbulence in the banking sector in March. 

The next significant test for the U.S. stock market will be the July CPI inflation data on Thursday. The CPI year-over-year growth is expected to rise from 3% in June to 3.3%. The core inflation rate is projected to remain steady at 4.8%. 

Inflation data will be a critical factor for the Federal Reserve’s September interest rate decision. The market currently believes that the federal rates may stay between 5.25% to 5.5%, but the likelihood of another rate hike is considered low. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average (DJI) declined by 191.13 points, or 0.54%, to close at 35,123.36. 
• NASDAQ Composite (COMP) dropped by 162.31 points, or 1.17%, to close at 13,722.02. 
• S&P 500 index fell by 31.67 points, or 0.70%, to close at 4,467.71. 

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks opened lower by 121 points following the drop in overseas markets, briefly narrowing the losses to just 47 points. The Hang Seng Index (HSI) reached a high of 19,198 during the day.  

However, weakness persisted, and the index again sought lower levels, reaching as low as 19,030, a maximum decline of 215 points. The response to the Hong Kong government’s eighth batch of silver bonds issued yesterday was enthusiastic. 

In the market, technology stocks experienced a general decline, with JD.com, Inc. (9618.HK) leading with a drop of over 2%. Meituan (3690.HK), Alibaba Group Holding Limited (9988.HK) and Baidu, Inc. (9888.HK) fell by over 1% each. 

Automotive stocks declined, with NIO Inc. (9866.HK) dropping nearly 7%. Real estate stocks performed weakly, with China Evergrande Group (3333.HK) falling by over 6%.  

Oil stocks strengthened, with all three major oil companies showing significant increases; PetroChina Company Limited (0857.HK)’s stock rose by over 2%. Coal stocks showed strength, with Yanzhou Coal Mining (1171.HK) gaining nearly 4%. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) declined by 0.95% to close at 19,062.45. 
• Hang Seng Tech Index dropped by 1.5%. 
• Hang Seng China Enterprises Index (HSCEI) declined by 0.95%. 

FTSE China A50 Index 

Fundamental Analysis: 

The three major A-share indexes opened low, experienced a rebound turning briefly into gains, then pulled back to turn collectively negative in the morning. The total turnover of the Shanghai and Shenzhen stock markets was 4201.77 billion yuan, with a net outflow of 20.14 billion yuan of northbound funds. There were 25 stocks that hit the daily limit up (including ST stocks), and none hit the limit down. 

In terms of industry sectors, the leading gainers were the natural gas, aviation airports, shipping ports, coal, and petroleum industries. The leading decliners were the automotive, medical services, automotive components, internet services, and interior decoration industries. In terms of thematic concepts, natural gas, oil and gas equipment and services, grain, new stocks, and other concepts were relatively popular. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) declined by 0.26% to close at 3,235.9. 
• Shenzhen Component Index (SZCOMP) declined by 0.54% to close at 10,980.2. 
• ChiNext Index (CHINEXT) declined by 0.28% to close at 2,222.54. 
• SSE STAR Market 50 Index (SSE50) declined by 0.27% to close at 954.8. 
  
  

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