On Wednesday, US stocks closed mixed as the Dow rose 140 points while the S&P 500 remained flat. After hours, Nvidia released its much-anticipated quarterly earnings report, which fell short of sky-high Wall Street expectations, causing the stock to drop as much as 5% in extended trading. Investors also closely monitored remarks from several Federal Reserve officials.
The market was particularly focused on Nvidia’s results, given its leadership in the AI chip market. Nvidia’s Q3 revenue surged 94% year-over-year to $35.08 billion, exceeding analysts’ consensus of $33.25 billion. GAAP net income climbed 109% to $19.31 billion, also beating estimates of $17.4 billion. Adjusted EPS stood at $0.81, above the $0.74 consensus.
However, Nvidia’s Q4 revenue guidance disappointed bullish expectations. While its midpoint guidance of $37.5 billion surpassed Wall Street’s consensus of $37.1 billion, it fell short of buy-side analysts’ anticipated $38.8 billion. Goldman Sachs had projected Q4 revenue of $39 billion.
As a result, Nvidia’s stock dipped 5% after hours before narrowing losses to 2.5%. CEO Jensen Huang stated that Nvidia’s next-gen Blackwell GPUs are in full production and are expected to remain in high demand for several quarters.
Investors also kept a close eye on Fed officials’ comments. Fed Governor Michelle Bowman emphasized caution in further rate cuts, citing slower progress in reducing inflation. Notably, Bowman voted against the Fed’s 50-basis-point rate cut in September. CME’s FedWatch tool now shows a 55.8% probability of a 25-basis-point rate cut in December, down from last week’s 82.5%.
US Stocks
Fundamental Analysis:
Large-cap tech stocks showed mixed results: Netflix gained over 1%, hitting another all-time high. Apple and Meta saw slight gains, while Tesla and Alphabet fell over 1%. Amazon, Microsoft, Nvidia, and Intel posted modest losses.
Among semiconductors and precious metals, Advanced Micro Devices dropped more than 8%, Qualcomm fell 6%, and U.S. Gold Corp slid 5%. Meanwhile, MicroStrategy soared over 10%, with its market cap surpassing $100 billion.
The Nasdaq Golden Dragon China Index rose 1.44%, with most popular Chinese stocks posting gains. Kingsoft Cloud jumped over 42% after reporting stronger-than-expected Q3 earnings.
iQIYI climbed 4%, Bilibili rose 3%, and New Oriental and TAL Education gained over 2%. In contrast, Li Auto dropped over 1%, while Baidu, XPeng, and NIO posted modest gains.
Technical Analysis:
Market Trends:
- Dow Jones: +139.53 points (+0.32%) to 43,408.47
- Nasdaq: -21.32 points (-0.11%) to 18,966.14
- S&P 500: +0.13 points (flat) to 5,917.11
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s major indices experienced volatile trading. Tech stocks were mixed, with NetEase climbing over 2% and Xiaomi gaining more than 1%, while Kuaishou plunged over 10%.
Cinema-related stocks fell sharply, with Alibaba Pictures down more than 6%. Real estate stocks also faced pressure, as Sunac China dropped over 7%. Conversely, Apple suppliers such as Q-Tech Group rose over 6%.
Kuaishou plummeted 10% after reporting Q3 revenue of 31.13 billion yuan, up 11.4% YoY. Adjusted net profit rose 24.4% to 3.9 billion yuan, but the slowing growth prompted bearish sentiment among analysts.
Technical Analysis:
Technical Analysis:
- Hang Seng Index: -0.13% to 19,680.23
- Hang Seng Tech Index: -0.57% to 4,388.07
- Hang Seng China Enterprises Index: -0.28% to 7,071.00
FTSE China A50 Index
Fundamental Analysis:
Mainland China’s A-shares showed minor adjustments, with over 2,600 stocks declining by midday. Controlled nuclear fusion, AI applications, supply chains, and auto stocks led gains, while insurance and humanoid robotics lagged.
Nuclear fusion stocks continued to rally, with Oriental Precision extending its six-day winning streak. AI-focused names, such as Huanrui Century and Nanji E-Commerce, hit limit-up. Conversely, humanoid robotics faced sell-offs, with Jiangsu Beiren and Xia Xia Precision leading declines.
Technical Analysis:
Market Trends:
- Shanghai Composite Index: -0.10% to 3,364.64
- Shenzhen Component Index: -0.25% to 10,800.04
- ChiNext Index: -0.27% to 2,261.78
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