Market Recap
On Wednesday, US stock market closed lower for a second consecutive session. The Dow dropped over 670 points, extending its two-day decline past 1,300 points, as investors reacted to the US imposing 25% tariffs on imports from Canada and Mexico. Both countries have announced retaliatory measures, heightening concerns that President Donald Trump’s tariff policies could slow economic growth.
The Chicago Board Options Exchange Volatility Index (VIX), which measures market uncertainty, jumped over one point as the new tariffs took effect. This follows a sharp 3% surge earlier in the week after Trump reaffirmed his commitment to broad tariff measures. Hopes for a last-minute trade agreement have now faded.
Mexican President Claudia Sheinbaum announced plans to reveal countermeasures on Sunday. Meanwhile, Canada confirmed its own retaliatory tariffs, effective immediately on $30 billion CAD worth of US goods, with an additional $125 billion CAD in tariffs to follow within 21 days.
US Stocks Highlights
Tech stocks were mostly lower, with Tesla plunging over 4%, Meta dropping more than 2%, while Google and Nvidia gained over 2%. The defense, banking, and capital management sectors saw notable declines, with Delta Air Lines falling over 6%, State Street, JetBlue, and Western Alliance down more than 5%, and Blackstone and Apollo Global off more than 4%. Meanwhile, cryptocurrency and solar stocks led gains, with Strategy surging over 9%, while Coinbase and Canaan rose over 3%.
Chinese stocks listed in the US mostly advanced, with the Nasdaq Golden Dragon China Index climbing 1.95%. Kingsoft Cloud jumped over 7%, Bilibili gained more than 5%, and Vipshop and Fangdd rose over 4%.
US Stock Market – Technical Analysis
US Market Performance
- Dow Jones: -670.25 (-1.55%) to 42,520.99
- Nasdaq: -65.03 (-0.35%) to 18,285.16
- S&P 500: -71.57 (-1.22%) to 5,778.14
Hong Kong Stocks Highlights
Hong Kong stocks opened higher but saw mild pullbacks. Tech stocks outperformed, with Meituan surging over 4%, Xiaomi, Lenovo, Bilibili, and Tencent rising over 2%, and Baidu and JD.com up more than 1%.
Data center stocks also rallied, with GDS Holdings soaring over 13%. This follows Alibaba Cloud’s recent announcement of a historic $380 billion RMB investment in AI and cloud infrastructure over the next decade, significantly exceeding the company’s total investments from the past ten years.
Hong Kong Market – Technical Analysis
Hong Kong Market Performance
- Hang Seng Index: +1.65% to 23,319.45
- Hang Seng Tech Index: +1.85% to 5,637.90
- China Enterprises Index: +1.82% to 8,520.03
A50 & China A-Share Market Highlights
Chinese A-shares saw a choppy session, closing mixed as early gains faded. Total market turnover reached 9.74 trillion RMB, with 3,854 stocks declining, 1,500 advancing, and 110 unchanged.
Sectors leading gains included machinery, construction rentals, linear actuators, and hydraulic equipment, while theme parks, carbon trading, real estate investment trusts (REITs), and independent third-party testing firms saw losses.
Technical Analysis of China Markets
China Market Snapshot
- Shanghai Composite: +0.32% to 3,334.9
- Shenzhen Component: -0.13% to 10,665.38
- ChiNext Index: -0.33% to 2,182.89
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