Market Recap
On Tuesday, US markets closed lower on Monday, with the Dow Jones Industrial Average dropping 200 points. Traders are preparing for this week’s key US inflation report.
The Nasdaq hit a record high last week, and the S&P 500 also closed near another milestone. The Dow also showed strong performance last week.
A recent Bank of America survey revealed a record-high proportion of fund managers believe US stocks are “overvalued.” About 91% of respondents said current valuations are too high, marking the highest level since 2001.
Jay Woods, Chief Global Strategist at Capital Group, commented, “US stocks are more likely entering a digestion or consolidation phase rather than any other trend. Sideways movement is possible, which isn’t necessarily a bad thing.”
Individual Stocks
Tesla extended its winning streak to four days. The company has applied to the UK energy regulator for a residential electricity supply license. If approved, Tesla could compete with major energy companies currently providing power to households across the UK.
US Markets Highlights
Most large tech stocks edged lower: Apple, Microsoft, Nvidia, Google, Amazon, Meta, and AMD all declined slightly. Intel gained over 3%, Tesla rose over 2%, marking its fourth consecutive daily gain.
Fannie Mae jumped over 15%, Freddie Mac surged more than 13%, both closing at their highest levels since 2008.
Popular Chinese ADRs mostly declined, with the Nasdaq Golden Dragon China Index falling 0.29%. TAL Education dropped over 3%, Li Auto fell nearly 3%, Baidu and Alibaba both declined more than 1%.
US Market – Technical Analysis
US Market Recap
- Dow Jones -200.52 points (-0.45%) to 43,975.09
- Nasdaq -64.62 points (-0.30%) to 21,385.40
- S&P 500 -16 points (-0.25%) to 6,373.45
Hong Kong Markets Highlights
Hong Kong’s three major indexes showed mixed performance. Tech stocks were mixed: Kuaishou surged nearly 9%, Bilibili climbed over 2%, Meituan dropped over 3%, Xiaomi and JD.com fell more than 2%. AI concept stocks strengthened, with Meitu rising over 15%. Biomedicine B shares were active, with Lepu Medical rising over 4%. Gold stocks continued to weaken, with Tongguan Gold falling over 8%. Mainland property stocks saw steep declines, with Country Garden down over 6%.
The biomedicine B sector stayed active, with Lepu Medical up over 4%. According to the National Healthcare Security Administration, on July 28, Deputy Director Li Tao met with Singapore’s Government Investment Corporation (GIC) in Beijing, discussing support for innovative drug development.
Hong Kong Market – Technical Analysis
Hong Kong Market Recap
- Hang Seng Index -1.07% to 24,906.39
- Hang Seng Tech Index +0.34% to 5,509.61
- China Enterprises Index -1.03% to 8,944.74
A50 (Mainland China) Highlights
China’s three major indexes all rose. By midday, total turnover in Shanghai and Shenzhen reached RMB 1.1945 trillion, with over 3,300 stocks declining.
Sector-wise, AI hardware stocks surged again. Leading gainers included CPO, optical chips, GPUs, servers, medical devices, and Xinjiang-related stocks. Meanwhile, recent hot themes like rare earths, satellite internet, salt lake lithium extraction, and PEEK materials generally pulled back.
China Market – Technical Analysis
China Market Recap
- Shanghai Composite +0.51% to 3,666.33
- Shenzhen Component +0.34% to 11,330.34
- ChiNext Index +0.91% to 2,401.52
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. D Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
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