Market Recap
US stocks ended mixed on Tuesday as investors digested strong bank earnings, Fed Chair Jerome Powell’s comments, and renewed trade tensions.
The S&P 500 rebounded sharply in early trading but erased most gains after Trump’s latest remarks reignited US–China trade concerns.
On Truth Social, Trump accused Beijing of “economic hostility” for not buying US soybeans and threatened to ban edible oil imports, sending the S&P 500 lower into the close.
Ross Mayfield, Investment Strategist at Baird Private Wealth Management, said: “Markets are struggling to gauge direction. If the Trump administration truly escalates trade tensions again, valuations look too high, especially with talk of 100% tariffs back on the table.”
Meanwhile, Powell signaled that the Fed’s ongoing balance sheet reduction (QT) could be nearing its end.
US Stocks
Tech stocks mostly fell: NVIDIA −4.4%, Tesla −1.53%, Amazon −1.67%, Meta −0.99%, Apple +0.04%, Alphabet A +0.53%, Microsoft −0.09%.
Banking stocks surged on strong Q3 results: Wells Fargo +7.15%, its biggest one-day gain since Nov 2024, and Citigroup +4% after both beat earnings expectations.
Chinese ADRs declined, with the Nasdaq Golden Dragon China Index −1.95%.
At the close: NIO −5%, Baidu −4%, Bilibili −3%, 21Vianet, Alibaba, and Xpeng −2% each.
US Stocks Snapshot:
- Dow Jones +202.88 pts (+0.44%) to 46,270.46
- Nasdaq −172.91 pts (−0.76%) to 22,521.70
- S&P 500 −10.41 pts (−0.16%) to 6,644.31
Hong Kong Stocks
Hong Kong markets advanced across all major indices by midday. Tech stocks led gains: Bilibili +3%, Alibaba and Lenovo +2%, Xiaomi and JD.com +1%.
Cement and building materials rallied, with China National Building Material +6% after reporting a Q3 profit of 2.95 billion yuan, reversing last year’s loss thanks to lower production costs and higher affiliate profits.
New consumer sectors also rose, led by Laopu Gold +6%. Analysts at Guotai Haitong Securities said that with external headwinds growing, stimulating domestic demand has become increasingly vital, and policy support should enhance consumption’s economic contribution.
Market Snapshot:
- Hang Seng Index +1.21% to 25,749.68
- Hang Seng Tech Index +1.18% to 5,992.88
- China Enterprises Index +1.11% to 9,180.36
A50 Index
Mainland A-shares edged higher overall. By midday: Shanghai Composite +0.1%, Shenzhen Component flat, ChiNext +0.22%, and Beijing 50 +0.97%.
Total half-day turnover across the three exchanges reached 1.28 trillion yuan, down 401 billion yuan from the previous session, with more than 3,200 stocks rising.
Top-performing sectors: biotech, beauty & personal care, aviation, retail, automakers, and software development.
Lagging sectors: lithography, ports, defense, rare earths, nuclear fusion, and non-ferrous metals.
Market Snapshot:
- Shanghai Composite +0.1% to 3,869.25
- Shenzhen Component flat at 12,895.25
- ChiNext +0.22% to 2,962.56
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