U.S. stocks closed higher on Monday, led by gains in tech stocks. Investors are shifting their focus to some key macroeconomic news later this week, including July retail sales, minutes from the recent Federal Open Market Committee meeting, and leading economic indicators. 

U.S. Stocks 

Fundamental Analysis: 

In the U.S. market, NVIDIA surged 7.1%, marking its largest single-day gain since May 26 and pushing its market value back above the trillion-dollar mark.  

This came after the stock had experienced a four-day decline. Morgan Stanley stated that the recent drop in NVIDIA’s stock price presented a “good entry point” for investors. The bank has an “overweight” rating on NVIDIA with a target price of USD 500. 

Most large tech stocks saw gains, with Google, Amazon, Netflix, and Meta all rising over 1%. Apple and Microsoft posted slight gains, while Tesla saw a minor decline.  

U.S. Steel soared over 36% after private holding company Esmark proposed a cash acquisition of U.S. Steel at USD 35 per share.  

AMC Theatres fell over 35% following court approval of a revised settlement agreement, clearing the path for the company to sell more shares. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average gained 26.23 points, a 0.07% increase, closing at 35,307.63 points. 
• Nasdaq Composite rose 143.48 points, a 1.05% increase, closing at 13,788.33 points. 
• S&P 500 Index increased by 25.67 points, a 0.58% gain, closing at 4,489.72 points. 

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong’s three major indices experienced fluctuating declines today. The morning session saw a significant drop, continuing the downward trend from the previous day, briefly narrowing to a 27-point decrease before widening to a 151-point decline at the close.  

The Hang Seng Index (HSI) extended its third consecutive day of decline, with a cumulative loss of over 600 points, edging closer to mid-July lows. Despite recent sharp declines followed by minor rebounds, the market managed to stabilize above 20,000 at the end of July. 

Among individual stocks, major tech stocks tumbled, with JD.com, Inc. (9618.HK), Kuaishou Technology (1024.HK), Meituan (3690.HK), and Alibaba Group Holding Limited (9988.HK) all falling over 1%.  

Real estate stocks also faced losses, with China Evergrande Group (3333.HK) initially surging over 45% before narrowing gains to 1.76% by market close.  

Chinese telecommunication services provider China Mobile Limited (0941.HK) led the gains in the telecom sector, while most healthcare stocks rose, including Everest Medicines Limited (1952.HK), which surged over 8%.  

Military-industrial stocks, high-speed rail infrastructure, and semiconductor concepts also showed positive momentum. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) fell by 1.03%, closing at 18,581.11 points. 
• Hang Seng Tech Index (HSTECH) fell by 0.7%. 
• Hang Seng China Enterprises Index (HSCEI) fell by 0.89%. 

FTSE China A50 Index 

Fundamental Analysis: 

China’s A-shares experienced a minor uptick at the opening, but the Shanghai Composite Index (SHCOMP) gradually weakened during the morning session.  

The Shenzhen Component Index (SZCOMP) and the ChiNext Index both gradually declined, with the ChiNext Index experiencing a more than 1% drop during intraday trading.  

In the afternoon, the A-shares indices collectively weakened, with the SZCOMP and ChiNext Index both falling over 1%. However, a surge in brokerage stocks led to a partial market recovery before the indices once again entered a period of fluctuation.  

The total trading volume in the Shanghai and Shenzhen markets was 7064.96 billion yuan, with a net outflow of 9.773 billion yuan from northbound funds.  

Sixty-five stocks hit their daily limit up (including ST stocks), while three stocks hit their limit down. 

In terms of industry sectors, pharmaceuticals, commercial department stores, textiles, traditional Chinese medicine, and light industry for household use were the top gainers.  

Photovoltaic equipment, gaming, semiconductors, tourism and hotels, and cultural media were the top decliners. Among thematic concepts, supply and marketing cooperatives, pet economy, traditional Chinese medicine, superconductors, and cross-border e-commerce were relatively active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) ) fell by 0.07%, closing at 3,176.18 points. 
• Shenzhen Component Index (SZCOMP) fell by 0.7%, closing at 10,679.73 points. 
• ChiNext Index (CHINEXT) fell by 0.74%, closing at 2,148.67 points. 
• SSE STAR Market 50 Index (SSE50) fell by 1.4%, closing at 917.45 points. 
  
  

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