Market Recap
Thursday saw a broad sell-off in US stocks, with the Nasdaq officially entering a correction and the S&P 500 falling below its 200-day moving average for the first time since 2023. Uncertainty surrounding Trump’s trade policies weighed on market sentiment, while weak guidance from Marvell heightened concerns over slowing AI infrastructure demand, dragging tech stocks lower.
Marvell tumbled nearly 20% after issuing a disappointing sales forecast. While its Q1 revenue outlook met analysts’ expectations, investors had anticipated stronger AI-driven growth. The negative outlook further dampened confidence in the semiconductor sector.
The Nasdaq Composite, dominated by tech stocks, has now fallen over 10% from its December peak, officially entering correction territory.
Meanwhile, China’s AI sector continues to make waves. On Thursday, Alibaba unveiled its latest open-source inference model, QwQ-32B, boasting 32 billion parameters with performance reportedly rivaling DeepSeek R1’s 671 billion parameters—a testament to optimization and efficiency in AI development.
JPMorgan strategist Nikolaos Panigirtzoglou noted that weak US economic data, deteriorating business and consumer confidence, and trade war uncertainty have combined to fuel growing recession fears in the US.
US Market Highlights
Tech stocks suffered heavy losses, with Netflix plunging over 8%, Tesla down 5%, and Meta sliding 4%. Amazon fell more than 3%, while Microsoft, Apple, and Google saw modest declines.
Semiconductor stocks took a hit, with Broadcom sinking 6%, while Nvidia, ON Semiconductor, ARM, and Micron all dropped over 5%. TSMC and Super Micro Computer lost over 4%, while ASML and AMD also declined.
Chinese stocks had a mixed session, with the Nasdaq Golden Dragon China Index falling 0.77%.
- Gainers: Dingdong Maicai (+13%), Zeekr (+4%), XPeng, Kingsoft Cloud (+2%), JD.com (slightly higher).
- Losers: WeRide (-10%), Hesai (-5%), Li Auto (-3%), NIO (-2%), Alibaba and Pinduoduo (slightly lower).
US Market – Technical Analysis
US Market Performance
- Dow Jones: -427.51 pts (-0.99%) → 42,579.08
- Nasdaq: -483.48 pts (-2.61%) → 18,069.26
- S&P 500: -104.11 pts (-1.78%) → 5,738.52
Hong Kong Market Highlights
Hong Kong’s major indices opened lower but rebounded throughout the session.
- Tech stocks surged: Kuaishou (+5%), Bilibili (+4%), Meituan & Lenovo (+3%), Alibaba & Baidu (+1%).
- Coal stocks rallied early before retreating: Aurum Pacific Asia surged 20%.
- Semiconductors gained: Fudan Microelectronics (+11%).
- Biotech stocks outperformed: Everest Medicines (+16%).
Hong Kong Market – Technical Analysis
Hong Kong Market Performance
- Hang Seng Index: +0.58% → 24,510.49
- Hang Seng Tech Index: +1.34% → 6,149.85
- China Enterprises Index: +0.95% → 9,022.93
A50 & China A-Share Market Highlights
China’s A-shares saw a choppy session, with more decliners than gainers (2,900+ stocks down).
- Top gainers: Stamping dies, antimony, aviation engines, AI agents, and water pumps.
- Top losers: Zidong Taichu 2.0 model, HVDC power transmission, third-party testing, and virtual telecom operators.
China Market – Technical Analysis
China Market Performance
- Shanghai Composite: +0.01% → 3,381.33
- Shenzhen Component: -0.08% → 10,890.08
- ChiNext Index: -0.91% → 2,214.38
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Disclaimer
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