U.S. Stocks Close Higher With Tech Leading, Nvidia Soars Over 200% YTD

U.S. stocks rose on Wednesday with tech stocks leading the gains. Lower treasury yields boost indices. Investors keep a close eye on Nvidia’s earnings report, with Q2 performance beating expectations.

U.S. Stocks

Fundamental Analysis:

Nvidia has surged over 200% year-to-date, outperforming all other S&P 500 constituents. It is also the top-performing stock among the seven giants of the S&P constituents (the other six being Apple, Tesla, Microsoft, Alphabet, Amazon, and Meta). These seven companies contributed two-thirds of the July gains in the S&P 500.

Major tech stocks rose across the board: Netflix up over 3%, Meta, Google, and Apple up over 2%, Microsoft and Tesla up over 1%, and Amazon with a slight increase.

Chip stocks also rose collectively, with the Philadelphia Semiconductor Index up over 2%, AMD and Intel up over 3%.

The “Big Four” U.S. banks also rose, with Bank of America and Wells Fargo recovering by the closing bell. JPMorgan Chase, which dropped 5% yesterday, surged nearly 3%, rebounding from a seven-week low on the 11th day of decline.

Regional banks also rose, with Western Alliance Bancorporation and Zions Bancorporation up around 2%, and Keycorp and Ally Western Bank up around 3%.

Technical Analysis:   

(S&P 500 Index, 1-day chart)

Market Trends:

  • Dow Jones Industrial Average rose 184.15 points, a 0.54% increase, closing at 34,472.98 points.
  • Nasdaq Composite Index rose 215.16 points, a 1.59% increase, closing at 13,721.03 points.
  • S&P 500 Index rose 48.46 points, a 1.10% increase, closing at 4,436.01 points.

Hong Kong Stocks

Fundamental Analysis:

Hong Kong stocks started strong and continued to rise through the morning session. The market expanded its gains, closing nearly 341 points higher at around 18,186. In the afternoon, the upward trend persisted, reaching a high of 18,272, up by as much as 427 points.

The Hang Seng Index rebounded after a 7-day decline, hitting a new low for the year at 17,573, and has risen for 3 consecutive days, surpassing the 18,000 level.

From its high of 22,700 at the beginning of the year to its low, it has fallen by more than 20%, even hinting at a technical bear market.

In terms of stock performance, technology and internet-related companies saw widespread gains: Meituan (3690.HK) surged over 7%, while Kuaishou Technology (1024.HK) and Baidu, Inc. (9888.HK) were up around 5%, and Alibaba Group Holding Limited (9988.HK) and Tencent Holdings Limited (0700.HK) both rose over 2%.

Emerging electric vehicle companies showed active movement, with XPeng Inc. (9868.HK) up nearly 5% and Li Auto Inc. (2015.HK) dropping over 11%.

Chinese brokerage stocks collectively rose, led by CIT CITIC Limited (0267.HK) with an over 4% increase.

The CXO sector showed clear gains, with WuXi AppTec Co., Ltd. (2359.HK) up by 8%. However, the large infrastructure sector bucked the trend, with China Railway Construction Corporation Limited (1186.HK) falling over 6%.

Technical Analysis:

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) rose by 2.05%, closing at 18,212.17 points.
  • Hang Seng Tech Index (HSTECH) rose by 3.72%.
  • Hang Seng China Enterprises Index (HSCEI) gained rose by 2.46%.

FTSE China A50 Index

Fundamental Analysis:

All three major A-share indices opened higher, with the market rising in the morning session. The Shenzhen Component Index and the ChiNext Index both increased by over 1%.

In the afternoon, A-shares briefly surged before experiencing a slight pullback. The three major indices closed with varying degrees of gains.

Notably, after 13 consecutive days of net selling, Northbound funds turned net buyers today. The total trading volume of the Shanghai and Shenzhen markets was 785.31 billion yuan, with Northbound funds net buying 3.233 billion yuan.

37 stocks hit the upper price limit (including ST stocks), while 16 stocks hit the lower limit.

In terms of sectors, precious metals, cultural and media companies, agriculture and animal husbandry, medical services, and photovoltaic equipment were among the top gainers.

On the other hand, construction, transportation equipment, utilities, engineering consulting services, and gas were among the top losers.

In thematic areas, aquaculture, poultry concepts, CRO, gold concepts, film and television concepts, and TOPCon batteries were active.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.12%, closing at 3,082.24 points.
  • Shenzhen Component Index (SZCOMP) rose by 1.02%, closing at 10,256.19 points.
  • ChiNext Index (CHINEXT) rose by 1.26%, closing at 2,064.57 points.
  • SSE STAR Market 50 Index (SSE50) rose by 0.68%, closing at 885.48 points.

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