Market Recap
On Tuesday, US stocks suffered a sharp sell-off, with tech stocks leading the decline. The Nasdaq tumbled 4%, marking its biggest one-day drop since September 2022. Concerns over Trump’s escalating trade war fueled fears of a US recession and a prolonged bear market. Investors now await key economic reports, including CPI and PPI, later this week.
Market sentiment remained fragile as ongoing trade negotiations between the US, Mexico, and Canada continued to weigh on equities.
One major catalyst was Trump’s aggressive trade policies, raising fears of another inflation shock and global supply chain disruptions, triggering broad-based selling in US stocks.
Even after Trump delayed the planned tariff hikes on Mexico and Canada, the stock market continued its sell-off. The federal government’s decision to withhold funds and lay off tens of thousands of government workers further heightened recession concerns.
Sanford C. Bernstein strategist Rupal Agarwal commented, “Trump’s trade policies have put significant pressure on US equities, and now we are seeing increasing fears of an economic downturn.”
US Stock Market Highlights
Tech stocks were hit hard, with Tesla plunging over 15%, marking its worst single-day drop since September 2020, and cutting its valuation by more than half from its peak. Nvidia fell 5%, while Apple, Meta, and Google all slid over 4%, and Microsoft lost 3%.
Sectors leading the losses included cryptocurrencies, automakers, and semiconductors:
- Coinbase (-17%), MicroStrategy (-16%), and ContextLogic (-8%) plummeted.
- ASML fell 6%, dragging down chip stocks.
Chinese stocks listed in the US also declined, with the Nasdaq Golden Dragon China Index falling 3.59%:
- Zeekr (-11%), Bilibili (-9%), and Kingsoft Cloud (-7%) led the losses.
- Alibaba, Li Auto (-5%), JD.com, and Pinduoduo (-3%) also dropped.
US Market – Technical Analysis
US Market Performance
- Dow Jones: ▼ 890.01 pts (-2.08%) → 41,911.71
- Nasdaq: ▼ 727.9 pts (-4.00%) → 17,468.32
- S&P 500: ▼ 155.64 pts (-2.70%) → 5,614.56
Hong Kong Stocks Market Highlights
Hong Kong markets surged early but pared gains:
- Tech stocks declined: JD.com, Meituan (-3%), Bilibili, Alibaba (-2%), Xiaomi, Baidu (-1%)
- Automakers outperformed, with NIO (+8%) leading the charge.
- Chip stocks rebounded, with SMIC Holdings gaining 3%.
Hong Kong Market – Technical Analysis
Hong Kong Market Performance
- Hang Seng Index: ▼ 0.93% → 23,562.09
- Hang Seng Tech Index: ▼ 0.68% → 5,845.70
- China Enterprises Index: ▼ 0.72% → 8,662.23
A50 & China A-Share Market Highlights
China’s A-shares opened lower, staged a brief rebound, but drifted lower in choppy trade. Over 4,000 stocks fell across Shanghai, Shenzhen, and Beijing exchanges.
Sectors Leading Gains:
- High-voltage DC transmission (HVDC), medical aesthetics, forestry, defense, and baby products.
Sectors Leading Losses:
- Powder metallurgy, Tesla-related stocks (Cybertruck, energy storage, robotics), robotics motion control, gears, and industrial components.
China Market – Technical Analysis
China Market Performance
- Shanghai Composite: ▲ 0.47% → 3,350.26
- Shenzhen Component: ▼ 0.66% → 10,754.52
- ChiNext Index: ▼ 0.76% → 2,183.26
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Disclaimer
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