Financial Daily: The sell-off of NVIDIA triggered a chain reaction in US tech stocks, leading to a divergence in global stock markets! Gold breaks above $5,180 as risk aversion heats up.

- Focus

– The Omani Foreign Minister announced that the third round of indirect talks between the US and Iran has concluded with 'significant progress.'

– The US International Trade Commission stated that it will launch an investigation into the impact of revoking China's permanent normal trade status.

– German Chancellor Merkel concluded her visit to China, praising the good cooperative relationship with China but acknowledging there are still challenges to be addressed.

Content compiled by the 'Harbor Family Office' under Henry Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[US Market] The three major US stock indexes were mixed, with the Nasdaq falling more than 1%.

On Thursday, despite NVIDIA's strong earnings report, its shares faced significant sell-offs after a sharp rise. This, along with a bearish article on NVIDIA published by famous investor Michael Burry, spread market concerns about NVIDIA to worries over AI and chip stocks. The decline in large-cap tech stocks caused the Nasdaq index to fall more than 1%.

At the close, the S&P 500 Index fell 0.54% to 6,908.85 points; the Nasdaq Index dropped 1.18% to 22,878.383 points; the Dow Jones Industrial Average rose 0.03% to 49,499.20 points. The VIX panic index rose 3.90% to 18.63. The semiconductor and photovoltaic sectors fell nearly 3%.

The index tracking the seven largest US technology giants closed down 1.87%, with NVIDIA plunging 5.46%, Tesla dropping over 2%, Google A falling 1.76%, Amazon declining 1.29%, and Meta rising 0.51%. The Nasdaq Golden Dragon China Index fell 1.78% to 7,411.36 points. Among popular Chinese stocks, Baidu tumbled over 5.5%, BYD fell 4.2%, and Alibaba dropped 2.8%. In individual stocks, Circle continued its gains from the previous trading day, with its share price rising approximately 5%.

[European Market] On Thursday, major European country indices generally rose, while the pan-European index declined.

On Thursday, major European country indices generally rose, while the pan-European index declined. At the close, the pan-European STOXX 600 Index fell 0.05% to 633.18 points; the pan-European STOXX 50 Index dropped 0.19% to 6,161.56 points.

Germany's DAX 30 Index rose 0.45% to 25,289.02 points; France's CAC 40 Index gained 0.72% to 8,620.93 points; and the UK's FTSE 100 Index climbed 0.37% to 10,846.70 points, hitting a new closing high.

[Asian Market] On Thursday, Japan and South Korea's stock markets extended their rallies, with South Korea’s index surging over 3.5%.

On Thursday, the stock markets in Japan and South Korea continued their upward trend, with South Korea's index surging over 3.5%. At the close, Japan's Nikkei 225 Index rose 0.29% to 58,753.39 points, and the Tokyo Stock Price Index (TOPIX) gained 0.97% to 3,880.34 points. The South Korean KOSPI Index closed up 3.67% at 6,307.27 points.

[Hong Kong Market] All three major Hong Kong stock indexes closed lower

On Thursday, Hong Kong stocks saw a significant pullback, with all three major indexes opening lower and closing down. The Hang Seng Tech Index fell nearly 3%. At the close, the Hang Seng Index was down 1.44% at 26,381.02 points, the Hang Seng Tech Index dropped 2.87% to 5,109.33 points, and the Hang Seng China Enterprises Index fell 2.44% to 8,814.29 points. In terms of sectors, tech stocks generally declined, with Huahong Semiconductor, Kuaishou, Bilibili, and Baidu Group falling more than 4%. Among biotech stocks, BeiGene plunged over 9%, and Wuxi Bio fell over 7%.

[A-share Market] A-shares showed volatile performance, with mixed results for the three major indexes

A-shares were volatile throughout Thursday’s session. After dropping early, the three major indexes rebounded from their lows but closed mixed, with the Shanghai Composite Index edging down slightly. At the close, the Shanghai Composite Index fell 0.01%%, to 4,146.63 points; the Shenzhen Component Index rose 0.19% to 14,503.79 points, while the ChiNext Index fell 0.29% to 3,344.98 points. In terms of sectors, concerns about AI computing costs and labor displacement eased following NVIDIA's better-than-expected earnings report and its impact on U.S. stocks. Stocks in the computing hardware sector performed strongly. CPO-related stocks surged, with JPT and Poly Optoelectronic both jumping 20% to hit their price limits, while ZTT and Hengtong Optoelectronics also hit their daily limit. PCE-related stocks exploded, with Tongyu New Materials and Mingyang Circuit surging 20%, while Guanghe Technology,沪电股份, and Aoshikang also hit their limit-up levels. Meanwhile, cinema chains, rare earths, and real estate development sectors led the declines.

– Bonds

[U.S. Bonds] U.S. Treasury yields continue to rise

U.S. Treasury yields turned lower, with the 10-year Treasury yield falling 3.82 basis points to 4.0136% and the two-year Treasury yield dropping 3.86 basis points to 3.4321% in late New York trading.

[Non-U.S. Bond Markets] Yields on 10-year European government bonds broadly declined

On Thursday, yields on 10-year European government bonds broadly declined. In late European trading, Germany's 10-year bond yield fell 1.7 basis points to 2.691%, the UK's 10-year yield dropped 4.3 basis points to 4.274%, and France's 10-year yield fell 0.7 basis points.

[China Bond Market] On Thursday, government bond futures across the board moved lower.

On Thursday, government bond futures fell across the board, with the 30-year government bond dropping more than 0.5%. At the close, the main 30-year contract fell by 0.53%, the main 10-year contract fell by 0.10%, the main 5-year contract dropped by 0.08%, and the main 2-year contract fell by 0.03%.

– Foreign exchange

[US Dollar] The US Dollar Index surged before retreating slightly; the ICE US Dollar Index rose by 0.08%.

The US Dollar Index surged then retreated; at the New York market close, the ICE US Dollar Index rose by 0.08% to 97.775 points, while the Bloomberg US Dollar Index increased by 0.08% to 1,188.39 points.

[Non-US Currencies] The US dollar showed mixed performance against most major currencies, with the Japanese yen rising by 0.14%.

The US dollar showed mixed performance against major world currencies, with the Japanese yen's decline easing. The US dollar fell 0.14% against the yen to 156.14 yen. The euro dropped 0.11% against the dollar to 1.1796 dollars.

[Chinese Yuan] The offshore yuan exchange rate stood at 6.8443 per US dollar.

The renminbi gained for five consecutive days. At the New York market close, the offshore yuan fell by 95 points compared to the previous trading day's closing level, reaching 6.8443 per US dollar. The onshore yuan appreciated by 275 points from the previous trading day’s closing price, settling at 6.8397 per US dollar.

[Cryptocurrency] The cryptocurrency market declined, with Bitcoin falling approximately 2%.

On Thursday, the cryptocurrency market fell, with the price of Bitcoin dropping by about 2%, falling below $68,000. Ethereum prices fell by approximately 3.5%.

– Product

[Energy] Crude oil futures prices moved lower.

Crude oil futures prices declined as investors monitored the progress of negotiations between Iran and the United States. At the close of the US stock market, Brent crude oil futures fell by 0.14%, settling at $70.75 per barrel, while US crude oil futures dropped by 0.32%, settling at $65.21 per barrel.

Precious metals, except for gold, generally fell, with spot gold prices rising by 0.41%.

Precious Metals:Gold prices fluctuated throughout the day. In late New York trading, spot gold rose by 0.41%, to $5,186.18 per ounce; US gold futures increased by 0.45%, to $5,202.80 per ounce.

Metals Futures Market:Precious metals other than gold generally declined. In late New York trading, spot silver fell nearly 0.9%, to $88.4490 per ounce; US silver futures dropped by 2.74%, to $89.120 per ounce. US copper futures decreased by 0.28%, to $6.028 per pound; spot platinum fell over 0.2%, and spot palladium dropped more than 0.6%.

[Disclaimer]

The content above is provided by Harbor Family Office (hereinafter referred to as "Harbor Family Office"), sourced from market information gathered from various channels. Neither Harbor Family Office nor its group members participated in preparing the content, nor did they explicitly or implicitly endorse or approve it. This article is for reference only and does not constitute any investment or trading advice. Investment involves risks. Readers should independently evaluate and judge this information and are advised to consult professionals before making any investment or trading decisions. Without authorization, no one may reproduce, copy, or publish the content in whole or in part to the public in any manner. Copyright belongs to Harbor Family Office and relevant providers.

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