US stocks ended mixed on Tuesday, with the Dow Jones Industrial Average declining for the fourth consecutive session, while Nvidia’s strong rally lifted the Nasdaq. Walmart hit a record high after reporting better-than-expected Q3 earnings and raising its full-year guidance.
Investors are closely monitoring geopolitical tensions, key earnings reports including Nvidia, and cabinet appointments by the Trump administration.
The path for the Federal Reserve’s next rate cuts remains unclear. Kansas City Fed President Jeffrey Schmid, a 2025 FOMC voter, stated on Tuesday that while the first rate cuts reflect confidence in inflation returning to the 2% target, it remains uncertain how much rates will be reduced in total.
Schmid emphasized that “massive fiscal deficits won’t lead to inflation, as the Fed will do whatever it takes” to keep inflation anchored at 2%.
Wall Street strategists have turned more optimistic in recent weeks. BMO Chief Investment Strategist Brian Belski stated in an interview that the S&P 500 could reach 6,700 by the end of 2025. Goldman Sachs added that Trump’s tax cuts could boost S&P 500 earnings by more than 20% over the next two years.
Nvidia shares surged nearly 5% on the eve of its earnings report, scheduled for Wednesday after the market closes. This will be Nvidia’s first earnings report since being added to the Dow. Analysts expect the results to significantly influence US market direction. According to US options analytics firm ORATS, traders predict an 8.5% swing in Nvidia’s stock price post-earnings, which could add or subtract $300 billion from its market cap.
US Stocks
Fundamental Analysis:
Most major tech stocks gained. Nvidia rose nearly 5%, marking its biggest one-day gain since September 11. Tesla and Netflix climbed over 2%, while Amazon, Google, and Meta were up more than 1%. Apple and Microsoft posted modest gains, while Intel dropped over 2%.
Precious metals and airlines led gains. US Gold rose over 5%, United Airlines surged more than 4%, and Delta Airlines, Carnival Cruises, and Harmony Gold all gained more than 2%. Advanced Micro Devices (AMD) soared 31%, its biggest single-day gain since February 22.
The Nasdaq Golden Dragon China Index fell 0.75% as most Chinese stocks traded lower.
Futu Holdings dropped over 6%, XPeng fell more than 3%, while Bilibili and Alibaba declined nearly 3% and 2%, respectively.
Zhihu gained over 2%, while Li Auto and Baidu posted marginal gains.
Technical Analysis:
Market Trends:
- Dow Jones: -120.66 points (-0.28%), closed at 43,268.94
- Nasdaq: +195.66 points (+1.04%), closed at 18,987.47
- S&P 500: +23.36 points (+0.40%), closed at 5,916.98
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s indices traded in a narrow range with mixed sector performances:
- Tech Stocks: Tencent rose nearly 1%, while Baidu and Meituan edged higher. Xiaomi slid over 2%, and Alibaba declined more than 1%.
- Sector Highlights: Biotech stocks were active, with Laekna Therapeutics surging over 19%. Application software firm Mobvista jumped more than 36%, following the overnight rally of “AI-driven application stocks” in the US.
- Notable Movement: SPROCOMM INTEL crashed over 86% at the open after Hong Kong’s Securities and Futures Commission flagged concerns over concentrated ownership.
Technical Analysis:
Technical Analysis:
- Hang Seng Index: -0.12%, closed at 19,641.05
- Hang Seng Tech Index: +0.03%, closed at 4,396.46
- Hang Seng China Enterprises Index: -0.23%, closed at 7,065.66
FTSE China A50 Index
Fundamental Analysis:
Chinese A-shares rallied in the morning session, with over 4,300 stocks advancing.
Leading Sectors: AI applications, robotics, and phosphorus chemical stocks led gains. Notable performers include:
- AI Application Stocks: Coolpad Intelligence, Wanda Information, BlueFocus, and Guangdong Advertising hit limit-up.
- Robotics Stocks: Oriental Precision, Sci-Tech Intelligence, and Southern Precision surged, with some hitting their fifth consecutive daily limit.
- Chemical Stocks: Yuguang Guifen surged to its ninth limit-up in 10 trading days.
Technical Analysis:
Market Trends:
- Shanghai Composite Index: +0.55%, closed at 3,364.54
- Shenzhen Component Index: +0.77%, closed at 10,826.12
- ChiNext Index: +0.59%, closed at 2,269.82
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