Thursday Market Recap
US markets ended mixed on Thursday. The Nasdaq posted a modest gain, while the Dow and S&P 500 declined for a third straight day. Investor concerns grew after the House narrowly passed President Trump’s sweeping tax reform bill, which could further expand the fiscal deficit. Long-term Treasuries slumped, and the 30-year yield hit its highest level since October 2023.
On Thursday morning, Trump’s multi-trillion-dollar tax package passed the House by a slim margin. While the bill helps avert year-end tax hikes, it’s also expected to deepen the national debt burden.
One controversial aspect: the proposal would end clean energy tax credits, a key part of Biden’s Inflation Reduction Act (IRA), while nuclear-related incentives would be spared. The market reaction was swift:
- Sunrun, heavily reliant on tax credits, plunged 37%
- Nuclear energy stock Oklo closed up 8%, then surged another 18% in after-hours trading
“In the short term, the tax plan offers some stimulus and could support GDP,” said Jed Ellerbroek, Portfolio Manager at Argent Capital Management.
“But long-term, it spells ballooning deficits—a negative for the bond market.”
US Stocks Market Highlights
Tech stocks mostly rose:
- Tesla +2%
- Google +1%+
Energy and metals stocks lagged:
- NextEra Energy -6%
- First Solar -4%+
- Century Aluminum -2%+
Quantum Stocks Explode:
So-called “quantum hype stocks” saw explosive gains:
- IonQ +36%
- Rigetti Computing +26%
- D-Wave Quantum +24%
- Quantum Computing Inc. +14%
IonQ CEO Niccolo de Masi fueled the momentum by stating:
“We believe IonQ will become the Nvidia of quantum computing.”
Earlier, Morgan Stanley issued a bullish industry outlook, adding to the surge.
Chinese ADRs Mixed:
- Nasdaq Golden Dragon China Index -1.18%
- XPeng -7%
- 21Vianet -6%+
- Alibaba, Baidu, Li Auto, NIO -1%+
- Pinduoduo +3%
- Zhihu +2%
US Market – Technical Analysis
US Market Close
- Dow Jones -1.35 pts (flat) → 41,859.09
- Nasdaq +53.09 pts (+0.28%) → 18,925.73
- S&P 500 -2.60 pts (-0.04%) → 5,842.01
Hong Kong Markets Highlights
Hong Kong stocks opened higher and extended gains across the board.
Tech rallied:
- Bilibili +5%
- Meituan, NetEase, Baidu +1%+
- Alibaba Pictures soared 11% alongside broad gains in media & entertainment
Biotech Boom:
- Hengrui Medicine (new IPO) +30%
- MIRXES +27%
Gains were driven by news that 3SBio had reached a global licensing deal with Pfizer on its dual-antibody cancer therapy (PD-1/VEGF, SSGJ-707). This reflects growing global interest in China’s innovative drug pipeline.
Analysts say 2025 will be a “triple breakout year” for China’s pharma sector:
- Revenue breakout (fueled by national insurance coverage)
- Profit breakout (as more firms turn profitable)
- Valuation breakout (as payment reform lengthens valuation cycles)
Hong Kong Market – Technical Analysis
Hong Kong Market Close
- Hang Seng Index +0.58% → 23,679.99
- Hang Seng Tech Index +0.61% → 5,283.69
- China Enterprises Index +0.75% → 8,622.20
A-Share Markets (Midday) Highlights
Mainland stocks opened higher across all major indexes.
- Market turnover: ¥661.1 billion, down ¥84.6 billion from the previous session
- Advancers: Over 3,300 stocks
Top Sectors:
- Nuclear fusion and pharma outperformed
- Top gainers: Harbin Welding, Snowman, Rongfa Nuclear (limit up)
- Biotech leaders: Haichen Pharma, Zhongsheng Pharma, Xianda, Selin Medical (limit up)
- Robotics rebound: Seres, Watertech (limit up); Dongtu Tech, Huayan Precision +10%+
Declining Sectors:
- Port & shipping and utilities dragged
- Nanjing Port hit limit down
- Lianyungang, Ningbo Shipping -5%+
- Electricity stocks: Leshan Power, Hunan Development, Xichang Electric -5%+
China Market – Technical Analysis
Mainland Market Midday Snapshot
- Shanghai Composite +0.08% → 3,382.96
- Shenzhen Component +0.50% → 10,271.21
- ChiNext Index +0.48% → 2,055.44
Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
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. Doo 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.
