Market Recap
On Tuesday, the S&P 500 inched higher to notch another record close, while chip sector losses dragged the Nasdaq down. The retail-driven meme stock frenzy continued, with several names seeing sharp gains. Meanwhile, multiple US tech giants are set to report earnings soon. In Asia, a US-Japan trade deal lifted Japanese equities, sending the Nikkei 225 soaring over 3%.
Despite the looming August 1 trade deadline and rising uncertainty in negotiations, Wall Street’s record-setting rally persisted. However, investors remain cautious as valuations climb. Hugh Gimber, Global Market Strategist at JPMorgan Asset Management, noted: “A few earnings surprises aren’t enough to determine the future path. We need to see where the real tariff impact shows up.”
Ahead of major tech earnings, retail traders poured into meme stocks overnight. Shares of Kohl’s (KSS) surged over 37%, The Children’s Place (PLCE) rose nearly 33%, and Petco Health and Wellness (WOOF) jumped 29%. However, Opendoor (OPEN), which had rallied for six consecutive sessions, fell more than 10%.
On Wednesday morning Beijing time, President Trump announced a trade deal with Japan via social media: a 15% US tariff rate and a $550 billion Japanese investment into the US. Japan also agreed to open agricultural markets including rice. The Nikkei 225 responded with a more than 3% rally by midday.
US Market Highlights
Large-cap tech stocks were mixed: Tesla gained over 1%, Nvidia fell more than 2%, and Broadcom dropped over 3%. Coke and precious metals sectors led gains—Americas Silver surged over 4%, while Pan American Silver rose more than 2%. Semiconductor equipment and materials stocks led losses—KLA fell over 4%, and ASML dropped nearly 2%.
The Nasdaq Golden Dragon China Index rose 1.7% as Chinese ADRs rallied broadly: NIO soared over 10%, Baidu climbed 4%, XPeng and Pinduoduo rose over 3%, while JD.com and Li Auto were up more than 1%.
US Market – Technical Analysis
US Market Recap
- Dow Jones rose 179.37 points (0.40%) to 44,502.44
- Nasdaq fell 81.49 points (–0.39%) to 20,892.69
- S&P 500 gained 4.02 points (0.06%) to 6,309.62
Hong Kong Market Highlights
All three major Hong Kong indexes continued to climb. Tech stocks posted strong gains: Kuaishou and Baidu rose over 4%, Tencent advanced over 3%. Mobile gaming stocks led the rally—Feiyu Technology jumped more than 16%. Chinese brokerage stocks surged, with Zhongzhou Securities up over 14%. Insurance names were active—ZhongAn Online climbed more than 4%. Meanwhile, the Yajiang Hydropower sector saw broad declines.
NIO jumped more than 8% in Hong Kong trading. CEO William Li announced via Weibo that dynamic test drives for the new Ledo L90 would begin on July 23. Nearly 600 demo units were deployed across 400+ locations in 140 cities. Pre-orders began July 10, with prices starting at RMB 279,900 or RMB 193,900 with battery leasing. Full launch is expected by end of July, with deliveries starting August 1.
Hong Kong Market – Technical Analysis
HK Market Snapshot
- Hang Seng Index +1.13%, closing at 25,413.48
- Hang Seng Tech Index +1.76%, closing at 5,705.53
- China Enterprises Index +1.32%, closing at 9,195.68
A50 (Mainland China) Highlights
China’s three major stock indexes opened higher across the board. By midday, total turnover in Shanghai, Shenzhen, and Beijing hit ¥1.1595 trillion—¥6 billion more than the previous session. Over 2,000 stocks posted gains.
Sector-wise, hydropower, brokerages, airport/aviation, CROs, and banking led the gains. Hainan Free Trade, defense, copper cable, and power grid equipment lagged. Hydropower-related stocks surged again, with multiple names like SuBot, Xining Special Steel, and Huaxin Cement hitting “three consecutive limit-ups.”
Brokerages rallied before the midday break—Guosheng Financial hit its upper limit. Steel stocks extended gains—Liuzhou Steel posted six limit-ups in seven sessions.
CROs opened strong but later pulled back; JOINN Laboratories hit the daily limit, with Medisi and Hightide Bio also among top performers. Banking stocks moved higher intraday—Qilu Bank and Agricultural Bank rose more than 3%. Hainan Free Trade zone names reversed after early gains—Haima Auto, Caesars Tourism, and Xinlong Holdings dropped over 5%. Most defense stocks pulled back, with Avic Jonhon falling over 10%.
China Market – Technical Analysis
China Market Snapshot
- Shanghai Composite +0.75%, to 3,608.58
- Shenzhen Component +0.31%, to 11,134.07
- ChiNext Index +0.72%, to 2,327.48
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