On Tuesday, all three major US stocks closed higher, with the Dow Jones marking its fourth consecutive record-high close. The S&P 500 also achieved a second consecutive all-time high. Driven by favorable policy, Chinese stocks rallied across the board, with the Nasdaq Golden Dragon China Index surging 9.13%.
The US stock market extended its gains following last week’s 50 basis point rate cut by the Federal Reserve. Data shows that interest rate-sensitive sectors like utilities and financials have benefited from the anticipated Fed action.
However, the gains were somewhat limited as the US Consumer Confidence Index saw its steepest drop in three years. This data prompted traders to increase bets on another 50 basis point rate cut in November by the Fed.
Quincy Krosby, Chief Global Strategist at LPL Financial, noted that while traders are cheering the large rate cut, market volatility could intensify in the coming weeks. She emphasized that with such a sharp rise in market valuations after the rate cut, any signs of a faster economic slowdown could trigger a strong reaction from the market.
In individual stocks, Nvidia closed up nearly 4%. Reports indicate that CEO Jensen Huang has completed his pre-arranged stock sale plan after three months of reducing his holdings, cashing out over $700 million.
US Stocks
Fundamental Analysis:
Most major tech stocks rose, with Nvidia up nearly 4% and Intel and Tesla both up over 1%. Industrial metals, mining, semiconductors, and shipping sectors led the gains. Coeur Mining jumped over 9%, Southern Copper, Alcoa, and Hecla Mining were up more than 7%, and Pan American Silver surged over 6%.
Gerdau Steel gained 5%, while TSMC and Century Aluminum rose over 4%. On the downside, sectors like REITs, casinos, and insurance saw declines, with Silicon Valley Bank and New York Community Bank falling more than 2%, and AIG, Citigroup, and Wells Fargo down over 1%.
Chinese stocks surged across the board, with the Nasdaq Golden Dragon China Index rising over 9%, marking its largest single-day gain since 2022. Bilibili soared over 17%, Tencent Music jumped 16%, and iQIYI rose more than 14%. JD.com surged 13%, while XPeng, Weibo, NIO, Li Auto, Futu, and Pinduoduo all gained over 11%. Full Truck Alliance was up 10%, with VIPShop and NetEase advancing over 8%, and Alibaba and Baidu climbing more than 7%.
Technical Analysis:
Market Trends:
- Dow Jones: +83.57 points (+0.20%), closing at 42,208.22
- Nasdaq: +100.25 points (+0.56%), closing at 18,074.52
- S&P 500: +14.36 points (+0.25%), closing at 5,732.93
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong stocks continued to rally, with all three major indices rising. Leading the charge were Chinese tech stocks, with Kuaishou and Bilibili both gaining over 5%. Chinese brokerages also performed well, with Zhongtai Futures up more than 7% and China International Capital Corporation (CICC) up more than 6%. Gold stocks showed strong performance, with Shandong Gold and Zijin Mining rising more than 3%.
Automakers also saw significant gains, with Leapmotor surging over 9%. According to a press conference held by the National Development and Reform Commission on September 25, the “old-for-new” vehicle replacement initiative has made substantial progress. As of September 25, the national platform for automotive replacement had received over 1.13 million applications for subsidies.
Technical Analysis:
Market Trends:
- Hang Seng Index: +2.01%, closing at 19,382.54
- Hang Seng Tech Index: +2.36%, closing at 4,008.08
- Hang Seng China Enterprises Index: +2.32%, closing at 6,870.03
FTSE China A50 Index
Fundamental Analysis:
Chinese A-shares saw robust trading, with all three major indices rising in early trading. As of midday, the total turnover of the market reached 798.4 billion yuan, an increase of 276.7 billion yuan from the previous trading day. More than 5,000 individual stocks were up.
All sectors saw gains, with major financials, cultural media, and internet finance sectors leading the pack. Major financials surged in early trading, with Tianfeng Securities, Sunline, Wanguo Capital, Xinli Finance, Haide Capital, China Agri-Industries, and Aijian Group all hitting the daily limit.
The media sector also saw strong gains, with Wisdom Holdings, Fushi Holdings, Zhongguang Tianze, Huayang Lianzhong, and Jishi Media reaching the limit-up. The real estate sector rebounded, with Financial Street, Shenyang Zhaoye, Yangguang Co., and Hefei Urban Construction all hitting the limit-up.
Technical Analysis:
Market Trends:
- Shanghai Composite Index: +1.73%, closing at 2,912.65
- Shenzhen Component Index: +2.36%, closing at 8,634.99
- ChiNext Index: +2.63%, closing at 1,657.84
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