The U.S. stock market reported a series of financial results, with semiconductor stocks experiencing significant declines. AMD’s stock dropped by over 7%, while NVIDIA fell by more than 4%, and Intel saw a nearly 4% decline. Tech giants Apple and Amazon are both scheduled to release their financial reports after Thursday’s closing bell.  

So far, approximately 67% of S&P 500 component companies have disclosed their financial results, with around 81% of them exceeding analysts’ expectations. 

U.S. Stocks 

Fundamental Analysis: 

The U.S. stock market ended lower as the yield on the 10-year Treasury bond surged to 4.189%, reaching its highest level since November 2022. The rising bond yields added pressure to the stock market. 

The unexpected downgrade of the U.S. sovereign credit rating by Fitch Ratings sent shockwaves through global markets, triggering profit-taking and dampening risk sentiment. However, some analysts believe that the fundamental view of the economy or the market remains unchanged, and the U.S. economy continues to show resilience unlike the last credit rating downgrade. 

Large-cap tech stocks were broadly down, and semiconductor stocks experienced significant losses. AMD fell over 7%, NVIDIA dropped over 4%, and Intel declined by nearly 4%. Other tech giants, including Tesla, Google, Amazon, and Microsoft, also saw declines of over 2%.  

The semiconductor and solar panel sectors were among the hardest hit, with Sunworks falling over 12%, and Nano Dimension dropping over 8%. SunPower, TSMC, and ASML also experienced declines of over 4%. U.S. Steel Corporation fell by almost 30%, giving back gains from the previous day.  

On the other hand, the agricultural and insurance brokerage sectors showed gains, with Sinopec Rising over 8%, AXA Insurance up over 5%, and PAA up over 4%.  

The “Big Four” U.S. banks all fell by more than 1%, with Bank of the West and KeyCorp down 0.8%, and Alliance Western Bank falling by about 1% before recovering half of the losses in the final moments of trading. These key regional bank stocks all experienced double-digit percentage rebounds in July. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Nasdaq index declined by 310.47 points, or 2.17%, to close at 13,973.45. 
• S&P 500 index dropped by 63.34 points, or 1.38%, to close at 4,513.39. 
• Dow Jones index fell by 348.16 points, or 0.98%, to close at 35,282.52. 

Hong Kong Stocks 

Fundamental Analysis: 

The three major indices of the Hong Kong stock market opened higher before retracing and then rebounded later in the session. 

In terms of individual stocks, technology companies showed strong gains, with JD.com, Inc. (9618.HK) rising over 3%, and Meituan (3690.HK), Kuaishou Technology (1024.HK), and Alibaba Group Holding Limited (9988.HK) following suit. 

Chinese brokerage firms also exhibited strength, with Guolian Securities Co., Ltd. (1456.HK) surging nearly 13%.  

Due to the influence of high box-office revenues during the summer season, entertainment stocks saw active gains, with Maoyan Entertainment (1896.HK) leading with a 17% increase.  

Real estate stocks performed well, with Midea Real Estate Holding Limited (3990.HK) rising nearly 5%. However, the healthcare sector, which had shown some signs of recovery, experienced a pullback today, particularly the CRO (Contract Research Organization) segment. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index increased by 0.99% to close at 19,612.59 points. 
• Hang Seng Tech Index rose by 1.96%. 
• Hang Seng China Enterprises Index gained 1.42%. 

FTSE China A50 Index 

Fundamental Analysis: 

The A-share market opened with all three major indices in positive territory, but as financial and real estate sectors began to decline, the gains narrowed. 

In the first half-hour of trading, the three major indices slightly rebounded. The total trading volume in the Shanghai and Shenzhen stock markets reached CNY 6,234.73 billion, and Northbound capital recorded a net purchase of CNY 687 million.  

18 stocks reached the daily limit (including ST stocks), and one stock hit the limit down. 

Among the industry sectors, insurance, securities, internet services, software development, and communication services showed strong gains, while real estate services, medical services, textile apparel, biotech products, and food and beverage sectors fell.  

In terms of themes, digital currency, data elements, securities concepts, information technology, and big data performed actively. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index increased by 0.47% to close at 3,295.91 points. 
• Shenzhen Component Index rose by 0.67% to close at 11,238.19 points. 
• ChiNext Index gained 0.78% to close at 2,259.46 points. 
• SSE STAR 50 Index increased by 0.2% to close at 972.35 points. 
  
  

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