Market Recap
US stocks closed mixed on Tuesday, with the Dow Jones Industrial Average setting another record high as investors digested strong corporate earnings from Coca-Cola, 3M, and others, while monitoring developments on the US government shutdown and global trade tensions.
According to FactSet, more than 75% of S&P 500 companies that have reported earnings so far have beaten expectations. Tech giants continue to dominate profit growth, the “Magnificent Seven” are projected to post 14.9% earnings growth year-over-year, compared to 6.7% for the rest of the index.
Optimism grew after White House National Economic Council Director Kevin Hassett said the government shutdown, now the third longest in US history, “could end this week.” He added that if no deal is reached, the administration is prepared to take stronger action to break the stalemate.
Trade relations also remained in focus. While Trump previously threatened to impose 100% tariffs on Chinese imports starting November 1, his recent optimistic comments about a potential trade agreement helped ease fears of escalation.
US Stocks
Tech stocks were mixed: NVIDIA −0.81%, Apple +0.20%, Microsoft +0.17%, Alphabet −2.37%, Amazon +2.56%, Meta +0.15%, and Tesla −1.08%.
Chinese ADRs mostly declined, with the Nasdaq Golden Dragon China Index −0.97%.
Top movers: Alibaba −3.92%, JD.com −2.75%, Pinduoduo −0.65%, NIO −3.68%, Xpeng +0.09%, Bilibili +5.84%, Baidu −2.44%, and NetEase −0.65%.
Market Snapshot:
- Dow Jones +218.16 pts (+0.47%) to 46,924.74
- Nasdaq −36.88 pts (−0.16%) to 22,953.67
- S&P 500 +0.22 pts (+0.00%) to 6,735.35
Hong Kong Stocks
Hong Kong markets fell across all major indices. Tech stocks led the declines, with NetEase −5%, Lenovo, Kuaishou, Baidu, Alibaba, and Bilibili −2%, while JD.com, Xiaomi, and Tencent −1%.
Gold-related shares plunged after spot gold recorded its biggest one-day percentage drop in over a decade. Citi said the end of the US shutdown and progress in US-China talks could push gold into a 2–3 week consolidation phase. The bank turned short-term bearish, setting a 0–3 month target of $4,000/oz.
Lao Feng Xiang, a major jewelry retailer, dropped 7% after announcing plans to place 3.71 million new H-shares at HK$732.49 each, a 4.5% discount to the previous close, raising HK$2.707 billion. Proceeds will go toward inventory reserves (70%), store expansion (10%), and working capital (20%).
Market Snapshot:
- Hang Seng Index −1.27% to 25,697.57
- Hang Seng Tech Index −2.12% to 5,880.50
- China Enterprises Index −1.38% to 9,174.32
A50 Index
Mainland Chinese stocks opened lower. By midday: Shanghai Composite −0.44%, Shenzhen Component −0.81%, ChiNext −0.89%, and Beijing 50 +1.19%.
Total turnover reached ¥1.11 trillion, down ¥49.1 billion from the previous day, with over 2,800 stocks declining.
Leading sectors: construction machinery, wind power, plant-based meat, shale gas, real estate, and nuclear fusion.
Lagging sectors: gold, Hainan FTZ, gas, batteries, coal, and rare earths.
Market Snapshot:
- Shanghai Composite −0.44% to 3,899.05
- Shenzhen Component −0.81% to 12,971.98
- ChiNext −0.89% to 3,056.23
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