On Thursday, US stock market closed mixed as the Dow Jones Industrial Average ended its 10-session losing streak — the longest in 50 years — with a modest gain. Meanwhile, the Nasdaq and S&P 500 posted their third consecutive daily losses as investors continued to assess the Federal Reserve’s hawkish stance. Micron Technology tumbled over 16% after releasing disappointing guidance for its second fiscal quarter.
The recent market sell-off was triggered by the Federal Reserve’s hawkish rate-cut approach, with the Nasdaq plunging more than 3% on Wednesday. However, some analysts believe that the market may have overreacted. John Bilton, Global Head of Multi-Asset Strategy at JPMorgan Asset Management, commented, “This feels like a reality check on an otherwise healthy economy. Looking ahead to next year, I remain constructive. If I were a bull, I’d welcome this healthy correction.”
The Fed’s hawkish stance also drove the US Dollar Index to fresh two-year highs. The US bond market saw a continued sell-off, with the yield on the 10-year Treasury note rising for the ninth consecutive day, marking the steepest yield curve in nearly 30 months. Meanwhile, yields on short-term bonds declined.
In other developments, the US government faces a potential shutdown. On Thursday, the House of Representatives rejected Speaker Mike Johnson’s temporary funding bill by a vote of 235 to 174, just one day before the current stopgap funding measure expires. If no new agreement is reached, the federal government could begin a partial shutdown on Friday night.
Stock Spotlight
Oklo, a nuclear energy startup backed by OpenAI CEO Sam Altman, bucked the broader market trend, surging over 14% and pushing its year-to-date gain to nearly 100%. The rally came after the company announced a framework agreement with data center operator Switch.
US Stock Market Overview
Major tech stocks were mixed on Thursday.
- Gainers: NVIDIA, Netflix, and Amazon rose over 1%, while Google and Apple posted slight gains.
- Decliners: Intel fell over 1%, while Tesla, Microsoft, and Meta all posted small losses.
Micron Technology
Micron plunged more than 16% after issuing weaker-than-expected guidance for its second fiscal quarter, reflecting persistent challenges in the semiconductor market.
Chinese ADRs (US-listed Chinese stocks)
Chinese ADRs saw mixed performance.
- Gainers: Li Auto and New Oriental rose more than 2%.
- Decliners: Baidu and Fangdd Holdings fell more than 3%, while Douyu dropped over 2%.
Technical Analysis
Market Recap
- Dow Jones: Gained 15.37 points (+0.04%) to 42,342.24.
- Nasdaq Composite: Lost 19.92 points (-0.10%) to 19,372.77.
- S&P 500: Declined 5.08 points (-0.09%) to 5,867.08.
Hong Kong Stock Market Overview
Hong Kong stocks staged a comeback after an early decline, with the major indices closing higher.
- Technology stocks: Xiaomi and Tencent surged over 3%, while Alibaba fell more than 3% and Baidu declined nearly 3%.
- Semiconductor stocks: Semiconductor stocks outperformed, with industry leader SMIC soaring over 10%.
- Resource stocks: Coal and gold-related stocks were weak. SouthGobi Resources plunged over 8%, and China Gold International dropped nearly 3%.
Stock Spotlight
Weimob, a key Tencent ecosystem partner, surged over 16% after WeChat announced a new “Gift Giving” feature, currently in beta testing. Weimob is one of the first companies to support the feature, which aims to enhance WeChat’s e-commerce capabilities. A Weimob spokesperson stated that the company is actively integrating this feature with its mini-programs to allow merchants to participate in WeChat’s broader e-commerce ecosystem.
Technical Analysis
Market Recap
- Hang Seng Index: Rose 0.16% to 19,784.91.
- Hang Seng Tech Index: Gained 0.69% to 4,470.13.
- Hang Seng China Enterprises Index: Increased 0.30% to 7,173.91.
A50 & China A-Shares Overview
China’s A-share market opened higher, with all three major indices posting gains by the midday break. Total turnover reached 920.8 billion yuan, an increase of 52.2 billion yuan from the previous session. Over 4,200 individual stocks advanced.
Sector Performance
- Top Gainers: Internet e-commerce, AI glasses, and semiconductor stocks led the rally.
- Top Decliners: Coal and steel stocks saw the largest declines.
Key Sector Highlights
- Internet E-commerce: The sector led the market with major gainers including Qingmu Technology, Liren Liren, Ruoyu Chen, Huading Co., and Global Top, all hitting their daily limit-up.
- Semiconductors: Semiconductor stocks surged, with Kaiweite and Invensense hitting limit-up, while Espressif Systems and Tailin Micro gained over 10%.
- AI Glasses: Companies in the AI glasses sector posted strong gains, with Cloudwalk, Tianjian Co., Biyee Co., Yidao Information, and Kangguan Technology hitting limit-up. Boshi Glasses and Hengxuan Technology surged over 10%.
- AI Hardware: AI hardware names saw strength, with Accelink, Zhaolong Interconnect, Rayscape, and Dingxin Communications all hitting limit-up, while Shenyu Co. rose over 10%.
- Douyin Concept Stocks: Stocks linked to the TikTok ecosystem remained active, with Huizhou Intelligent, Yuanlong Yatu, Aoto Electronics, Lingnan Holdings, and Espressif Systems hitting their daily limit-up.
- Coal & Steel: Coal and steel stocks were the biggest laggards, with key decliners including Yanzhou Coal, China Coal Energy, and Anyang Iron & Steel.
Technical Analysis
Market Recap
- Shanghai Composite (SSE): Gained 0.54% to 3,388.22.
- Shenzhen Component (SZSE): Rose 0.62% to 10,715.49.
- ChiNext (Growth Enterprise Market Index): Increased 0.69% to 2,228.76.
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