US stocks closed sharply higher on Thursday, with the S&P 500 recording its biggest single-day gain since 2022.
A significant drop in weekly jobless claims helped ease concerns about a potential recession in the US. Investors continue to monitor economic data, corporate earnings, and the Federal Reserve’s interest rate trajectory.
Since last Friday’s jobs report, Fed officials have stated that they won’t overreact to a single month’s data but acknowledged that employment is currently receiving more attention as inflation has significantly declined. Fed Chair Jerome Powell mentioned before the report’s release that the labor market is slowly returning to pre-pandemic levels.
Joseph Ferrara, an investment strategist at Gateway Investment Advisors, noted that the recent market volatility could be a preview of the remaining months of the year. He pointed out that concerns over a potential US recession, geopolitical conflicts, and the upcoming November presidential election could keep investors on edge in the coming months.
US Stocks
Fundamental Analysis:
Major tech stocks were broadly higher, with Nvidia up over 6%, Meta rising more than 4%, and Tesla gaining over 3%. Apple, Microsoft, Amazon, and Google all rose over 1%. The semiconductor, airline, and metals sectors led the gains, with Arm up over 10%, ON Semiconductor rising over 8%, and Intel gaining nearly 8%.
Broadcom and NXP Semiconductors rose nearly 7%, while Micron Technology, TSMC, American Airlines, Delta Air Lines, and United Airlines all climbed more than 6%. Qualcomm, AMD, and Century Aluminum gained over 5%, Dell Technologies rose more than 4%, and AMD, Hewlett-Packard, and Southern Copper were up more than 3%.
Chinese tech stocks listed in the US also saw broad gains, with the Nasdaq Golden Dragon China Index rising 2.80%. Baidu surged over 5%, Nio gained more than 4%, and Weibo, XPeng, Vipshop, and Alibaba all rose more than 3%. Li Auto, JD.com, Futu Holdings, NetEase, and Tencent Music were up more than 2%, while Full Truck Alliance gained more than 1%, and iQIYI posted a modest gain.
Technical Analysis:
Market Trends:
- Dow Jones: +683.04 points, +1.76%, closing at 39,446.49
- Nasdaq: +464.21 points, +2.87%, closing at 16,660.02
- S&P 500: +119.81 points, +2.30%, closing at 5,319.3
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong stocks opened higher and continued to rise throughout the session. Tech stocks were broadly higher, with Kuaishou, Baidu, and Xiaomi up more than 4%, while NetEase gained more than 3%, and Alibaba, Meituan, and Lenovo were up over 2%.
Property stocks led the gains, with Shimao Group surging more than 11%. Semiconductor leaders also posted strong gains, with SMIC rising over 6%. Auto stocks were strong, with Li Auto gaining more than 5%. Meanwhile, the three major telecom operators were under pressure, with China Unicom dropping nearly 4%.
Semiconductor leaders, including SMIC, saw strong gains, with SMIC rising over 6%. The company reported second-quarter revenue of $1.9 billion, up 8.6% quarter-on-quarter and 21.8% year-on-year, exceeding market expectations of $1.84 billion.
Net profit was $164.6 million, down 59% year-on-year but up 129.2% quarter-on-quarter, more than double the market estimate of $76.3 million. The gross margin for the quarter was 13.9%, compared to 13.7% in Q1 2024 and 20.3% in Q2 2023.
Technical Analysis:
Market Trends:
- Hang Seng Index: +1.77%, closing at 17,191.43
- Hang Seng Tech Index: +2.93%, closing at 3,465.40
- Hang Seng China Enterprises Index: +1.94%, closing at 6,056.63
FTSE China A50 Index
Fundamental Analysis:
China’s A-shares ended mixed, with the Shanghai Composite Index rising after a strong start, up 0.12%, as healthcare stocks adjusted.
Real estate and urbanization-themed stocks gained, with World Union Properties, CCB Environment Investment, and Consulting Firm Ltd. hitting their daily limit.
Chip stocks briefly surged, with Mindray Electronics and SenseTime Micro hitting their daily limit. Power grid stocks surged at the opening, with Taiyuan Longcheng and Changcheng Electric hitting their daily limit.
Gold stocks rebounded, with Layson Tongling hitting its daily limit. Foldable screen stocks rallied late in the session, with EONC Technology and CEC Ke Cheng Technology hitting their daily limit.
Technical Analysis:
Market Trends:
- Shanghai Composite Index: +0.12%, closing at 2,873.47
- Shenzhen Component Index: +0.06%, closing at 8,451.09
- ChiNext Index: -0.12%, closing at 1,609.60
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