Market Recap
US stocks fell across the board on Thursday, as renewed concerns over bad loans in the banking sector dragged major indices lower. Early gains in the Dow, S&P 500, and Nasdaq evaporated as financial stocks slumped, while traders also grappled with persistent trade tensions and the ongoing US government shutdown.
Regional banks bore the brunt of the selloff: Zions Bancorporation (ZION) plunged 13.1% after setting aside large reserves for bad loans, and Western Alliance Bancorporation (WAL) sank 10.8% amid reports of borrower fraud allegations.
Jed Ellerbroek, portfolio manager at Argent Capital Management, said: “The market remains extremely sensitive to credit losses. Investors are unhappy with what they’re hearing from regional banks, and that’s weighing heavily on smaller financials.”
Tensions between the US and China also reignited market volatility. President Donald Trump recently threatened to impose 100% tariffs on all Chinese imports in retaliation for Beijing’s new rare-earth export controls, followed by renewed warnings of a soybean and edible oil ban earlier this week.
US Stocks
Tech stocks mostly declined: Tesla −1.47%, Meta −0.76%, Apple −0.76%, Amazon −0.51%, Microsoft −0.35%, while Alphabet A +0.17% and NVIDIA +1.10% bucked the trend.
The Nasdaq Golden Dragon China Index fell 0.91% as Chinese ADRs weakened: 21Vianet −5%, Kingsoft Cloud −2%, Xpeng, JD.com, and Miniso −1%, while Bilibili +1%.
US Stocks Snapshot:
- Dow Jones −301.07 pts (−0.65%) to 45,952.24
- Nasdaq −107.54 pts (−0.47%) to 22,562.54
- S&P 500 −41.99 pts (−0.63%) to 6,629.07
Hong Kong Stocks
Hong Kong stocks fell sharply at midday, led by tech and semiconductor weakness. Baidu and Alibaba dropped over 3%, while Meituan, Xiaomi, Kuaishou, and Bilibili fell more than 2%.
Apple suppliers tumbled, with Cowell e Holdings −9%, after China Galaxy Securities said AI is now the core driver of the consumer electronics industry, even as smartphones face an innovation plateau.
Semiconductors also slumped, with SMIC −5%. Huatai Securities noted from the SEMICON WEST Forum that while some investors fear an AI bubble, demand remains strong — with token usage growth supporting AI-related capital investment. It added that advanced packaging could become a key technology to sustain Moore’s Law, creating long-term opportunities for chipmakers and equipment firms.
Market Snapshot:
- Hang Seng Index −1.61% to 25,472.96
- Hang Seng Tech Index −2.81% to 5,835.09
- China Enterprises Index −1.67% to 9,104.46
A50 Index
Mainland A-shares opened lower across the board. The Shanghai Composite −1%, Shenzhen Component −1.99%, ChiNext −2.37%, and Beijing 50 −1.81% by midday.
Turnover across Shanghai, Shenzhen, and Beijing totaled 1.19 trillion yuan, down 34 billion yuan from the previous day, with over 4,100 stocks declining.
Top-performing sectors: gas utilities, precious metals, ports, coal mining, steel, airlines, and banks.
Lagging sectors: grid storage, CPO, nuclear fusion, lab-grown diamonds, semiconductors, and lithography equipment.
Market Snapshot:
- Shanghai Composite −1.0% to 3,877.20
- Shenzhen Component −1.99% to 12,825.85
- ChiNext −2.37% to 2,965.47
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