U.S. stocks closed higher on Monday, with the Dow Jones Industrial Average surging over 400 points. The Nasdaq and S&P 500 reversed their four-day consecutive decline trend. Investors are closely watching this week for more earnings reports and crucial inflation data. 

U.S. Stocks 

Fundamental Analysis: 

The Dow achieved its largest single-day gain since June 15th, led by stocks like Amgen, which rose around 4%. Both the Nasdaq and S&P 500 ended their previous streak of four consecutive trading days in the red.  

The earnings season for U.S. stocks is winding down, with most earnings reports surpassing expectations. So far, about 84% of the S&P 500 companies have released their earnings, and around 80% of them have outperformed Wall Street’s forecasts. 

Most of the major tech stocks saw gains, with Netflix, Google, and ASML rising over 2%. Amazon, Meta, and NVIDIA increased by over 1%, while Microsoft saw a slight uptick.  

However, Apple dropped over 1%, marking its fifth consecutive daily decline and its longest losing streak of the year. Tesla also declined by nearly 1%.  

Berkshire Hathaway surged over 3%, reaching an all-time high stock price. The company’s Q2 report showed performance data well above expectations. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

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• Dow Jones Industrial Average rose by 407.51 points, or 1.16%, to close at 35,473.13. 
• Nasdaq Composite gained 85.16 points, or 0.61%, closing at 13,994.40. 
• S&P 500 Index increased by 40.41 points, or 0.90%, finishing at 4,518.44. 

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks started the day with a synchronized drop, with the Hang Seng Index initially falling by around 205 points. It rebounded to close at 19,332, marking the day’s high.  

However, selling pressure remained significant, potentially pushing the index down further to around 19,144, a potential maximum decline of 393 points. The index found support around 19,000, hinting at a potential stabilization before further sideways movement.  

The Hang Seng Tech Index also followed a similar downward trend, hitting a low of 4,375, down by a maximum of 124 points. The downward momentum in the stock market continued, with investors adopting a more cautious approach, leading to reduced trading volume of below one hundred billion Hong Kong dollars, totaling only 78.9 billion, the lowest in the past two weeks. 

Major tech stocks experienced declines, with JD.com, Inc. (9618.HK) dropping by nearly 4%, Bilibili Inc. (9626.HK) by over 3%, and Baidu, Inc. (9888.HK), Meituan (3690.HK), and Meituan (3690.HK) by more than 2%.  

New energy vehicle manufacturers showed overall weakness, with Li Auto Inc. (2015.HK) and XPeng Inc. (9868.HK) both declining by over 3%.  

Property stocks extended their downward trend, with Longfor Group Holdings Limited (0960.HK) leading the decline with over 9%.  

Chinese brokerage firms showed active gains, with China Everbright Limited (0165.HK) surging over 4%, while China International Capital Corporation Limited (3908.HK), CITIC Limited (0267.HK), and CITIC Securities Company Limited (6030.HK) also followed suit.  

Chinese traditional medicine and healthcare concept stocks saw a recovery, with Beijing Tong Ren Tang Chinese Medicine Company Limited (3613.HK) rising over 2%. 

Safe-haven sentiment grew, causing gold-related stocks to buck the trend, with Zijin Mining Group Company Limited (2899.HK) surging nearly 5%. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index dropped by 1.37%, closing at 19,270.34. 
• Hang Seng Tech Index declined by 2.14%. 
• Hang Seng China Enterprises Index fell by 1.65%. 

FTSE China A50 Index 

Fundamental Analysis: 

China’s A-share market opened slightly lower and experienced fluctuations before rebounding from its intraday low. At one point, all three major indices turned positive.  

The combined trading volume of the Shanghai and Shenzhen markets was 506.23 billion yuan, while northbound funds sold a net of 4.471 billion yuan.  

Among the stocks, 26 hit their daily limit-up, including ST stocks, while 1 stock hit its limit-down. 

Leading sectors included traditional Chinese medicine, cultural media, pharmaceutical commerce, precious metals, and education.  

Sectors that declined the most were shipbuilding, complete automobiles, real estate development, real estate services, and transportation equipment.  

In terms of thematic trends, concepts like film and television, exclusive drugs, innovative medicine, data rights confirmation, and new urbanization were among the more favored. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index increased by 0.01%, closing at 3,269.29. 
• Shenzhen Component Index declined by 0.06%, closing at 11,138.6. 
• ChiNext Index dropped by 0.05%, closing at 2,239.68. 
  
  

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