U.S. stocks closed lower, with all three major indices dropping by more than 1%. The Dow Jones Industrial Average fell over 370 points. The market optimism driven by Nvidia’s financial report has gradually faded. Market attention has shifted to Federal Reserve Chair Powell’s speech at the Jackson Hole Symposium on Friday. 

U.S. Stocks 

Fundamental Analysis: 

On Thursday, U.S. Treasury yields rose. The 10-year Treasury yield increased to 4.223%, reaching the highest level in 16 years on Monday. 

As AI gains popularity, Nvidia’s market value surged in the second quarter, surpassing $1 trillion. Analysts suggest that the entire tech sector, even the entire market, is digesting Nvidia’s financial report because the company represents the purest and best indicator of AI demand.  

In our view, the company’s financial report and performance guidance are outstanding, and this will have a significant impact on the tech sector for the remainder of the year. 

Most major tech stocks declined; Netflix dropped nearly 5%, while Apple, Tesla, Microsoft, Amazon, and Meta fell over 2%. Google-A dropped nearly 2%. Nvidia experienced a slight increase and briefly rose by over 6% during trading. 

“Vietnam’s Tesla” VinFast surged over 30%, reaching a new closing high, and its market value exceeded $110 billion, becoming the world’s third-largest listed automotive stock by market capitalization. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average dropped 257.06 points, a decrease of 1.87%, closing at 13463.97 points. 
• Nasdaq Composite Index dropped 373.56 points, a decrease of 1.08%, closing at 34099.42 points. 
• S&P 500 Index dropped 59.70 points, a decrease of 1.35%, closing at 4376.31 points. 

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks’ three major indices declined today. The stock market initially opened lower and briefly fell below the 18000 mark before recovering.  

It closed at 18024, down 187 points. Weakness persisted in the afternoon, and despite multiple attempts at stabilization, the market failed to resume an upward trend.  

It fell below 18000 again, gradually searching for support and reaching as low as 17959, with a maximum drop of 252 points. The Hang Seng Index rebounded for a third consecutive day, rising by over 588 points in total. 

In the market, technology and internet-related stocks generally declined. NetEase, Inc. (9999.HK) and Meituan (3690.HK) experienced significant declines of over 6% and 5% respectively. Kuaishou Technology (1024.HK), JD.com, Inc. (9618.HK), and Alibaba Group Holding Limited (9988.HK) followed suit.  

Property and property management stocks rose due to favorable policies, with Country Garden Holdings Company Limited (2007.HK) and Country Garden Services Holdings Company Limited (6098.HK) leading the gains in these sectors.  

Most emerging electric vehicle companies declined, while “Vietnam’s Tesla” VinFast bucked the trend and surged 9%.  

Gas stocks saw the largest declines, with New Energy China’s revenue falling by over 16%.  

Building materials and cement sectors were active, with China Resources Cement Holdings Limited (1313.HK) rising nearly 4%.  

Entertainment and media stocks dropped, with Starlight Culture Entertainment Group Limited (1159.HK) falling by almost 18%. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped 1.4%, closing at 17956.38 points. 
• Hang Seng Tech Index (HSTECH) dropped 2.38%. 
• Hang Seng China Enterprises Index (HSCEI) dropped 1.48%. 

FTSE China A50 Index 

Fundamental Analysis: 

A-share stock indices all opened lower, experienced a minor rebound in the morning, and then fluctuated downwards. The Shanghai Composite briefly turned positive. In the afternoon, A-shares saw another wave of rebound, but the sustainability remained poor.  

All three major indices closed lower today. The Shanghai Composite reached a new low for the year intraday, and the ChiNext Index continued to hit a new low for over 3 years.  

The combined trading volume of the Shanghai and Shenzhen markets was 7662.92 billion yuan, and net sales by northbound funds were 2.401 billion yuan.  

There were 23 stocks with limit-up (including ST stocks) and 43 stocks with limit-down.  

The Shanghai Composite fell 2.17% for the week, the Shenzhen Component Index fell 3.17%, and the ChiNext Index fell 3.71%. 

In terms of industry sectors, insurance, real estate development, banking, securities, and gas saw the highest increases, while internet services, gaming, software development, computer equipment, and communication equipment suffered the largest declines.  

As for thematic sectors, nuclear pollution prevention, securities firms, aquaculture, soil remediation, and lithium extraction from salt lakes were active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) dropped 0.59%, closing at 3064.07 points. 
• Shenzhen Component Index (SZCOMP) dropped 1.23%, closing at 10130.47 points. 
• ChiNext Index (CHINEXT) dropped 1.17%, closing at 2040.4 points. 
• SSE STAR Market 50 Index (SSE50) dropped 1.7%, closing at 870.4 points. 
  
  

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