Financial Daily: Broadcom's earnings 'bombshell' triggers sell-off in tech stocks; US non-farm payrolls data due tonight, global markets await crucial guidance

- Key Focus

– Hezbollah rejects the US-brokered ceasefire agreement between Israel and the Lebanese government

– U.S. President Trump stated that he would not rule out meeting with Iran's Supreme Leader if a U.S.-Iran agreement is reached.

– U.S. Trade Representative Greer said the United States will adhere to the tariff caps stipulated in trade agreements already reached with Japan, the European Union, and others.

Content compiled by 'Harbor Family Office,' a subsidiary of Henry Jia Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[U.S. Markets] The three major U.S. stock indexes ended mixed, with Broadcom sparking market concerns.

On Thursday, the situation in the Middle East remained uncertain but generally eased compared to the previous two days. Crude oil prices declined. In U.S. markets, Broadcom’s AI-related earnings guidance fell short of market expectations, causing its shares to plunge and dragging down the broader tech and semiconductor sectors. Capital rotated into financials and healthcare, pushing the Nasdaq to a record high. The three major U.S. indexes closed mixed, and market panic sentiment cooled.

At the close, the S&P 500 rose 0.41% to 7,584.31 points; the Nasdaq Composite fell 0.09% to 26,830.958 points; the Dow Jones Industrial Average gained 1.73% to 51,561.93 points. The VIX fear index dropped 4.17% to 15.39 points. The Philadelphia Semiconductor Index declined 2.15% to 13,617.495 points.

The U.S. mega-cap tech index rose 1.37%. Among its components, Alphabet A surged 3.68%, NVIDIA opened lower but closed up 1.94%, Amazon gained 1.51%, Meta rose 0.74%, Apple advanced 0.31%, and Tesla slipped 1.24%. The Nasdaq Golden Dragon China Index fell 0.60% to 6,597.34 points. Among notable Chinese ADRs, WeRide dropped 8.92%, Li Auto declined 2.8%, and Alibaba fell nearly 1%. In individual stocks, Taiwan Semiconductor rose 1.86%, and Circle gained 0.39%.

[European Markets] Major European equity indexes broadly rebounded higher.

On Thursday, major European equity indexes broadly rebounded higher. At the close, the pan-European STOXX 600 index rose 0.52% to 624.45 points, while the Euro STOXX 50 gained 0.82% to 6,103.33 points.

Germany's DAX 30 rose 0.60% to 24,944.95 points; France's CAC 40 gained 1.15% to 8,244.29 points; the UK's FTSE 100 increased 0.27% to 10,360.32 points; and Italy's FTSE MIB climbed 0.27% to 50,174.36 points.

[Asian Markets] Asian equities mostly opened lower and continued to decline on Wednesday.

Asian equities mostly opened lower and extended losses, weighed down by the previous session's U.S. market performance and escalating tensions in the Middle East. By the close, the Nikkei 225 fell 1.36% to 67,470.69 points; the KOSPI index dropped 1.84% to 8,639.41 points. The FTSE Straits Times Index in Singapore declined 1.07% to 5,083.05 points; Thailand’s SET index rose 0.42% to 1,594.79 points.

[Hong Kong Market] Hong Kong stocks continued their downward trend, with all three major indices falling more than 1%.

On Thursday, Hong Kong stocks extended their decline, with all three major indices dropping over 1%. By the close, the Hang Seng Index fell 1.48% to 25,253.40 points; the Hang Seng Tech Index declined 1.61% to 4,975.36 points; and the Hang Seng China Enterprises Index dropped 1.10% to 8,501.91 points. In sector performance, memory chip stocks gained ground, with GigaDevice rising 6.87% and Montage Technology up 0.79%. Lithium battery stocks broadly weakened amid higher-than-expected lithium mine output forecasts, with CATL down 7.01%, China Aviation Lithium Battery off 6.09%, and Chaowei Power falling 5.88%. Gold stocks broadly corrected due to heightened expectations of Fed rate hikes and weakening gold prices, with Zijin Mining International down 4.40% and Jilong Gold down 6.02%.

[A-Share Market] A-shares pulled back, with all three major indices closing lower.

A-shares retreated, with all three major indices closing in the red, and the ChiNext Index falling more than 0.8%. By the close, the Shanghai Composite Index dropped 0.64% to 4,057.78 points; the Shenzhen Component Index declined 0.27% to 15,661.57 points; and the ChiNext Index fell 0.83% to 4,088.88 points. In terms of sectors and themes, the semiconductor supply chain remained strong, supported by solid earnings and rising demand: CSSC Specialty Gas surged 20% (limit-up), Huate Gas rose 15.50%, Shanghai Silicon Industry gained over 14%, and Lianhe Microelectronics hit the daily trading limit. Memory chip stocks broadly advanced, with Puya Semiconductor up 14.26%, Longtech rising 13.02%, and Dapu Micro Electronics gaining 11.88%. Coal stocks collectively strengthened as rising temperatures boosted electricity demand, with Antai Group and Pingmei Co., Ltd. both hitting their daily trading limits. Non-ferrous metals, cultural media, baijiu (Chinese liquor), and oil & gas sectors underperformed.

- Bonds

[U.S. Treasuries] U.S. Treasury yields turned lower, with the 10-year yield dropping 3.51 basis points.

U.S. Treasury yields turned lower. At the New York close, the 10-year U.S. Treasury yield fell 2.17 basis points to 4.4729%, while the 2-year yield declined 3.51 basis points to 4.0472%.

[Non-U.S. Bond Markets] Sovereign bond yields in major European countries broadly edged slightly lower.

Sovereign bond yields in major European countries broadly edged slightly lower. Germany’s 10-year yield dropped 1.3 basis points to 3.023%, and its 2-year yield fell 0.9 basis points to 2.661%. The UK’s 10-year yield declined 3.3 basis points, France’s 10-year yield dropped 0.5 basis points, Italy’s 10-year yield fell 0.8 basis points, and Spain’s 10-year yield also decreased by 0.8 basis points.

[China Bond Market] Treasury futures opened lower on Thursday but rebounded during the session.

On Thursday, Treasury futures opened lower and rebounded throughout the session. At the close, the benchmark 30-year Treasury contract rose 0.27%, the 10-year contract gained 0.07%, the 5-year contract advanced 0.05%, and the 2-year contract edged up 0.01%.

– Foreign exchange

[USD] The US dollar initially declined before recovering, ending slightly weaker overall.

The US dollar saw notable volatility on Thursday, dropping more than 0.35% intraday before staging a V-shaped recovery. At the New York close, the ICE U.S. Dollar Index fell 0.10% to 99.432, while the Bloomberg Dollar Spot Index declined 0.06% to 1,204.71.

The US dollar strengthened modestly against most major global currencies. The dollar was little changed against the yen at ¥160.01, holding steady near the 160 level; the euro rose 0.12% against the dollar to $1.1609; and the British pound gained 0.03% to $1.3420.

[CNY] The offshore renminbi traded at 6.7769 per US dollar.

At the New York close, the offshore renminbi weakened by 34 pips from the previous session’s close, trading at 6.7769 per US dollar. The onshore renminbi closed 48 pips lower against the dollar at 6.7768.

[Digital Assets] Cryptocurrencies continued their downtrend, with Bitcoin falling to around $63,500.

Cryptocurrencies extended their losses on Thursday, with Bitcoin down 3.17% to around $63,500, briefly touching $61,500 intraday; Ethereum fell 2.35% to approximately $1,770.

– Products

[Energy] As Middle East tensions eased somewhat, US crude oil futures dropped 3.1%.

Oil prices declined amid a conditional ceasefire between Israel and Lebanon and reports that Trump might sign a US-Iran deal as early as this week. At the New York close, US crude futures settled down 3.10% at $93.04 per barrel, while Brent crude futures fell 2.84% to settle at $95.03 per barrel.

[Precious Metals] Precious and non-ferrous metal prices generally rebounded

Precious Metals:Gold prices fluctuated upward, briefly surging above $4,500 per ounce during the session before quickly giving back gains. At the New York close, spot gold rose 0.91% to $4,475.02 per ounce, while U.S. gold futures gained 0.83% to $4,504.10 per ounce.

Metals Futures Market:At the New York close, spot silver rose 1.6% to $73.8903 per ounce; U.S. silver futures climbed 1.7% to $74.160 per ounce; and U.S. copper futures advanced 0.8% to $6.53 per pound.

[Disclaimer]

The above content is provided by Harbor Family Office (hereinafter referred to as "Harbor Family Office"), summarized from various market information sources. Harbor Family Office and its group members did not participate in preparing the content nor explicitly or implicitly endorse it. This article is for reference only and does not constitute any investment or trading advice. Investment involves risks. Readers should independently assess and judge this material and are advised to seek professional opinions before making any related investments or trades. Without authorization, no one may reproduce, copy, or publish this content in whole or in part to the public in any manner. Copyright belongs to Harbor Family Office and related providers.

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