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
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