Financial Daily: Nasdaq hits another all-time high, Mag 7 rises collectively, semiconductor stocks lead market trends; rising expectations of US-Iran peace talks trigger market volatility

- Key Focus

– Apple's R&D expenditure exceeds 10%, the highest proportion in nearly 30 years

– SpaceX and Anthropic have reached a computational power partnership

– US President Trump stated that productive communication has occurred between the US and Iran, making it highly likely that an agreement will eventually be reached

– Kevin Warsh, the Federal Reserve's nominee for chairman, suggested that recordings and published minutes of Fed meetings should be limited to discussions of decision-making

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

[US Market] All three major US stock indexes closed higher, with the Nasdaq reaching a new high for two consecutive days

On Wednesday, US President Trump said that it is highly likely that the US and Iran will reach an agreement. Expectations of the end of the US-Iran war are rising, causing oil prices to fall further while inflation expectations have eased. Coupled with strong ADP employment data and positive earnings from several large companies, the US stock market saw significant gains. All three major indexes rose more than 1%, with the Nasdaq up over 2%, hitting a record high for two consecutive trading days. The semiconductor index also closed sharply higher for the second straight day.

At the close, the S&P 500 Index rose 1.46% to 7,365.12 points; the Nasdaq Composite Index gained 2.03% to 25,838.943 points; the Dow Jones Industrial Average increased by 1.24% to 49,910.59 points. The VIX volatility index edged up 0.35% to 17.44 points. The Philadelphia Semiconductor Index surged 4.48% to 11,472.75 points.

The Mag 7 tech giants index rose 2.39%, with NVIDIA gaining nearly 5.68%, Google A rising 2.42%, Tesla climbing 2.35%, and Meta and Apple both up more than 1%. The Nasdaq Golden Dragon China Index jumped 3.45% to 7,127.47 points. Among popular Chinese stocks, Baidu Group surged 11.37%, Kingsoft Cloud rose 8.41%, and Alibaba climbed 6.94%. In individual performances, TSMC advanced 6.36%, Circle gained 6.66%, and Disney rose 7.5%.

[European Market] Major European indices generally strengthened, with the pan-European index rising more than 2%

On Wednesday, major European indices were broadly higher due to improving Middle East tensions, with the pan-European index rising more than 2%. At the close, the pan-European STOXX 600 Index gained 2.22% to 623.25 points.

Germany’s DAX 30 Index rose 2.12% to 24,918.69 points; France’s CAC 40 Index climbed 2.94% to 8,299.42 points; the UK’s FTSE 100 Index gained 2.15% to 10,438.66 points; and Italy’s FTSE MIB Index advanced 2.35% to 49,696.75 points.

[Asian Markets] Japanese stock index was closed on Wednesday, while South Korean stock index surged over 6%.

Asian stock markets generally rose on Wednesday, with South Korea’s index surging over 6%, while the Japanese market was closed. By the close, the South Korean KOSPI index gained 6.45% to 7,384.56 points, and the FTSE Straits Times Index in Singapore rose 0.14% to 4,927.38 points. At the time of closing, the Nikkei 225 index stood at 59,513.12 points.

[Hong Kong Market] Hong Kong stocks rebounded strongly, with all three major indices closing higher.

On Wednesday, Hong Kong stocks rebounded with all three major indices closing higher. The Hang Seng Index rose over 1.2%, continuing its upward trend throughout the day, while the Hang Seng Tech Index narrowed its gains in the afternoon. By the close, the Hang Seng Index rose 1.22% to 26,213.78 points, the Hang Seng Tech Index gained 0.80% to 4,969.20 points, and the Hang Seng China Enterprises Index increased by 0.80% to 8,800.75 points. In terms of sectors, storage chip stocks strengthened due to the rally in leading companies from South Korea and the US. Montage Technology surged 16.78%, and GigaDevice rose 14.48%. With broad prospects for the semiconductor industry and notable year-on-year revenue growth among multiple firms, SmartChip Holdings surged 28.57%, Hua Hong Semiconductor gained 9.33%, and SMIC rose 5.72%. Declining oil prices spurred a gold rebound, with Chifeng Gold rising over 11% and Lingbao Gold gaining 8.21%. Meanwhile, entertainment and pharmaceutical stocks weakened, with Viva Biotech falling over 7%.

[A-share Market] After resuming trading, A-shares performed strongly, with the Shenzhen Component Index and ChiNext Index both rising over 2%.

After resuming trading, A-shares showed strong performance, with all three major indices closing higher. The Shenzhen Component Index and ChiNext Index both rose over 2%. By the close, the Shanghai Composite Index rose 1.17% to 4,160.17 points, the Shenzhen Component Index climbed 2.33% to 15,459.62 points, and the ChiNext Index gained 2.75% to 3,778.16 points. Regarding sector performance, AI chip stocks were particularly strong, driven by better-than-expected results from global chip leaders and increased AI cost budgets from several tech giants. Longsys Electronics and Netac Technology surged 20%, with over ten stocks rising more than or closing up 10%. The lithium battery sector also strengthened, with Dynanonic rising over 11%, and both Azure Power and Zhongcai Science & Technology hitting their daily price limit. Other strong-performing concept sectors included commercial aerospace and ultra-high voltage.

– Bonds

[US Bonds] US Treasury yields continued to decline.

US Treasury yields continued to fall. In New York trading, the yield on the 10-year US Treasury note dropped by 7.1 basis points to 4.349%, and the yield on the 2-year Treasury note fell by 7.4 basis points to 3.866%.

[Non-US Bond Markets] Yields on European government bonds declined.

Yields on European government bonds fell. Germany's 10-year bond yield declined by 7.7 basis points to 2.9937%, and its 2-year bond yield dropped by 11.6 basis points to 2.5664%. France's 10-year bond yield fell by 9.2%.

[China Bond Market] On Wednesday, government bond futures fell across the board

On Wednesday, government bond futures declined across the board. The 30-year government bond main contract fell by 0.50%, the 10-year government bond main contract dropped by 0.03%, the 5-year government bond main contract decreased by 0.02%, and the 2-year government bond main contract fell by 0.03%.

– Foreign exchange

[US Dollar] The dollar weakened, with the yen surging nearly 1%

The US dollar weakened, with the yen soaring nearly 1%. In late New York trading, the ICE US Dollar Index fell by 0.52% to 97.98 points. The dollar fell 0.96% against the yen to 156.36 yen; the euro rose 0.51% against the dollar to $1.1752; the pound rose 0.41% against the dollar to $1.3594; the dollar fell 0.57% against the Swiss franc, and the Australian dollar rose 0.78% against the dollar.

[Renminbi] The dollar versus offshore renminbi was quoted at 6.8132 yuan

In late New York trading, the dollar versus offshore renminbi fell by 138 points compared to the previous trading day's close, quoted at 6.8132 yuan. The onshore renminbi versus the dollar rose by 186 points compared to the previous trading day's closing price, quoted at 6.8149 yuan.

[Virtual Assets] Significant volatility in the virtual asset market, Bitcoin surged then pulled back, erasing intraday gains

On Wednesday, the virtual currency market saw significant fluctuations. Bitcoin surged then pulled back, erasing intraday gains, with prices flat compared to the previous trading day level. Ethereum initially fell then rebounded, ending the day down approximately 1%.

– Product

[Energy] Crude oil prices declined, with US crude futures falling over 7%

Crude oil prices fell sharply due to the relatively stable situation between the US and Iran, with US crude futures dropping below $100. In late New York trading, US crude futures fell by 7.03%, settling at $95.08 per barrel.

Precious Metals: Metal markets are generally on the rise.

Precious Metals:Gold prices continued to rebound, moving back above $4,650. In New York trading, spot gold rose 2.84% to $4,686.74 per ounce; US gold futures climbed 2.81% to $4,696.80 per ounce.

Metals Futures Market:Most precious metals strengthened, with silver prices surging. Spot silver jumped 6.22% to $77.31 per ounce; US silver futures rose 5.77% to $78.83 per ounce. US copper futures increased by about 3%, reaching $6.176 per pound; London aluminum futures fell 1.8% to $3,524.5 per ton.

[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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