U.S. stocks closed higher on Wednesday, with the Dow Jones Industrial Average (DJIA) marking its eighth consecutive trading day of gains, and all three major indices reaching their highest levels since April 2022.  

Large companies have been reporting robust earnings, with 82% of the S&P 500 companies that have already released their earnings exceeding expectations.  

For many investors, the recent string of strong corporate earnings reinforces the scenario of a soft landing for the economy. Additionally, the encouraging CPI and PPI inflation data released last week further supported this outlook. 

U.S. Stocks 

Fundamental Analysis: 

Large tech stocks showed mixed performance, with Apple rising by 0.71%, reaching a historical new high as the company is reportedly developing a large AI language model.  

Amazon rose nearly 2%, Meta (formerly Facebook) increased by over 1%, while Microsoft and Google fell by more than 1%.  

Most chip stocks declined, with ASML dropping by over 5%, and ASE Technology and United Microelectronics falling by over 2%. AMD, GlobalFoundries, and NVIDIA declined by more than 1%. 

Regarding earnings reports, Tesla fell by 0.71% after its second-quarter sales surpassed expectations but gross margins fell short.  

Post-market trading saw a temporary decline of more than 4%.  

Netflix’s second-quarter paid subscriber count nearly tripled market expectations, but their third-quarter revenue guidance disappointed, resulting in a post-market stock price drop of over 8%. 

Technical Analysis:    

(S&P 500 Index, 1-day chart) 

Market Trends: 

• The Dow Jones Industrial Average rose 109.28 points, a gain of 0.31%, closing at 35,061.21 points, marking eight consecutive days of gains. 
• The S&P 500 Index rose 10.74 points, a gain of 0.24%, closing at 4,565.72 points, marking the third consecutive trading day of gains. 
• The Nasdaq Composite Index rose 4.38 points, a gain of 0.03%, closing at 14,358.02 points, rising for three consecutive days. 
  
  

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks opened higher but retreated later in the morning session. Large tech stocks showed mixed performance.  

The platform economy received positive news, resulting in slight gains for JD.com, Inc. (9618.HK), Tencent Holdings Limited (0700.HK), and Meituan (3690.HK), while Baidu, Inc. (9888.HK), Kuaishou Technology (1024.HK), and NetEase, Inc. (9999.HK) declined.  

Institutions indicated that the real estate sector entered a period of policy gaming, leading to collective gains for property developers and property management companies.  

Meanwhile, gold stocks maintained their strength. However, individual stocks in the mobile phone industry chain declined, with Sunny Optical dropping by over 13%. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• The Hang Seng Index rose 0.26%, closing at 19,001.73 points. 
• The Hang Seng Tech Index fell 0.28%. 
• The Hang Seng China Enterprises Index rose 0.41%. 
  
  

FTSE China A50 Index 

Fundamental Analysis: 

The three major A-share indices opened slightly higher but pulled back and turned negative after an initial surge. The ChiNext Index temporarily rose by 1%, but all three major indices eventually turned red.

The total trading volume of the Shanghai and Shenzhen stock markets was 455.367 billion yuan, and the net inflow of northbound funds was 1.17 billion yuan. Twenty-three stocks rose to their daily limit (including ST stocks), while two stocks hit their daily limit down. 

Regarding industry performance, the fertilizer industry, real estate services, commercial department stores, tourism and hotel sectors, and energy metals performed well.  

On the other hand, the semiconductor, communication equipment, consumer electronics, gaming, and electronic components sectors declined.  

In terms of themes, there was active performance in areas such as gear reducers, new retail, cross-border e-commerce, cosmetics concepts, and duty-free concepts. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• The Shanghai Composite Index fell 0.33%, closing at 188.44 points. 
• The Shenzhen Component Index fell 0.31%, closing at 10,898.87 points. 
• The ChiNext Index fell 0.19%, closing at 2,173.12 points. 
• The SSE STAR 50 Index fell 0.91%, closing at 966.28 points. 
  
  

Forward-looking Statements    
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