Financial Daily: Rising US-Iran tensions roil markets, leading to a collective decline in the three major US stock indices; Mag 7 shows mixed performance

- Key Focus

– The conflict between the US and Iran has escalated again, with Trump stating that the ceasefire agreement remains in effect.

– Reuters reported that the US resolution at the UN demanding Iran stop attacking ships and laying torpedoes might be vetoed by Russia and China.

– US President Trump invited CEOs from NVIDIA, Apple, Boeing, and other companies to accompany him on a visit to China.

– The US Court of International Trade ruled that the 10% global tariff implemented by the Trump administration is invalid.

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] Focused on US-Iran conflict, all three major US stock indexes closed lower.

On Thursday, friction occurred between the US and Iran near the Strait of Hormuz. Although President Trump later stated that the ceasefire agreement remained in effect, the market reacted swiftly to the conflict, with oil prices rising and US stocks declining across the board, leading to broad-based drops in sector ETFs.

At the close, the S&P 500 Index fell 0.38% to 7,337.11 points; the Nasdaq Composite Index dropped 0.13% to 25,806.196 points; the Dow Jones Industrial Average slid 0.63% to 49,596.97 points. The VIX volatility index edged down 1.78% to 17.08 points. The Philadelphia Semiconductor Index declined 2.72% to 11,160.993 points.

The Mag 7 index rose 0.69%, with Tesla up 3.28%, NVIDIA gaining 1.76%, Microsoft climbing 1.68%, while Amazon fell nearly 1.4%. The Nasdaq Golden Dragon China Index dropped 1.40% to 7,027.77 points. Among popular Chinese stocks, Pony AI fell 6.1%, XPeng dropped 2.1%, Baidu retreated slightly by 0.5% after surging the previous trading day, and Alibaba fell 0.3%. On an individual stock basis, Taiwan Semiconductor slipped 1.28% and Circle tumbled 6.94%.

[European Market] Major European indices generally pulled back, with the pan-European index falling over 1%.

On Thursday, major European indices generally retreated amid escalating Middle East tensions, with the pan-European index falling over 1%. At the close, the pan-European STOXX 600 Index declined 1.02% to 616.88 points.

Germany's DAX 30 Index closed down 0.99% at 24,671.54 points; France's CAC 40 Index closed down 1.17% at 8,202.08 points; the UK's FTSE 100 Index closed down 1.55% at 10,276.95 points; Italy's FTSE MIB Index closed down 0.82% at 49,291.01 points.

[Asian Markets] Asian stocks generally closed higher on Wednesday, with Japan's index surging over 5.5%.

On Thursday, Asian stocks broadly rose driven by spreading market optimism, with Japan's index surging over 5.5%, closing above 62,000 points for the first time in history. By the close, the Nikkei 225 Index gained 5.58% to 62,833.84 points; South Korea's KOSPI Index rose 1.43% to 7,490.05 points; and Singapore's FTSE Straits Times Index climbed 0.43% to 4,948.46 points.

[Hong Kong Market] Hong Kong's three major indices all rose over 1%, with the Hang Seng Tech Index surging over 3%.

On Thursday, Hong Kong stocks surged, with the three major indices all rising over 1% and the Hang Seng Tech Index climbing over 3%. At the close, the Hang Seng Index was up 1.57% at 26,626.28 points; the Hang Seng Tech Index gained 3.06% to 5,121.10 points; and the Hang Seng China Enterprises Index rose 1.35% to 8,919.48 points. In terms of sectors, the semiconductor sector extended gains, with Biren Technology closing up 14.22%, Montage Technology rising 12.62%, and Huahong Semiconductor jumping over 8.5%, hitting a new all-time high. Internet stocks performed strongly, boosting the Hang Seng Tech Index, with Kuaishou closing up 7.56%, Alibaba rising nearly 5%, and Baidu Group gaining 4.33%. Energy stocks such as PetroChina fell, with PetroChina closing down 8.48% and CNOOC dropping 5.78%.

[A-Share Market] A-shares' three major indices all closed higher, with the Shenzhen Component Index and ChiNext Index rising over 1%.

With the possibility of a ceasefire memorandum between the US and Iran, A-shares continued their upward trend, with the three major indices all closing higher and the Shenzhen Component Index and ChiNext Index rising over 1%. By the close, the Shanghai Composite Index gained 0.48% to 4,180.09 points; the Shenzhen Component Index climbed 1.18% to 15,641.89 points; and the ChiNext Index rose 1.45% to 3,833.06 points. In terms of sector performance, benefiting from NVIDIA’s recent positive news and strong earnings reports from leading companies, optoelectronics communication and optical module stocks collectively surged, with ShiJia Photonics gaining nearly 12%, Tongding Interconnection, Tefa Information, and Dongshan Precision hitting their daily limit. The semiconductor sector continued its strong performance, with Focuslight Technologies surging 20%, and New Sight Microelectronics, Dapu Microelectronics, and Yandong Microelectronics among nearly 10 stocks rising over 10%, with widespread gains across the board. Meanwhile, energy-related sectors like oil & gas, coal, and lithium mining declined.

– Bonds

[US Treasuries] US Treasury yields rebounded.

US Treasury yields rebounded, with the 10-year yield rising 4.1 basis points to 4.393% and the two-year yield increasing 4.6 basis points to 3.916% in New York trading.

[Non-US Bond Markets] Yields on government bonds in major European countries continued to decline.

Yields on major European government bonds continued to decline, with Germany's 10-year bond yield falling by 1 basis point to 2.99%, and its 2-year bond yield dropping by 2 basis points to 2.560%. France's 10-year bond yield fell by 0.6%.

[China Bond Market] Government bond futures strengthened across the board on Thursday.

On Thursday, government bond futures strengthened across the board, with the 30-year main contract rising 0.11%, the 10-year main contract rising 0.01%, the 5-year main contract rising 0.03%, and the 2-year main contract climbing 0.01%.

– Foreign exchange

[US Dollar] The US dollar edged higher while the yen fell approximately 0.2%.

The US Dollar Index edged up slightly, with the yen falling about 0.2%. In late New York trading, the ICE US Dollar Index rose 0.08% to 98.10. The dollar rose 0.22% against the yen to 156.73 yen; the euro fell 0.03% against the dollar to 1.1744 dollars; the pound fell 0.14% against the dollar to 1.3575 dollars; the dollar rose 0.08% against the Swiss franc; and the Australian dollar fell 0.17% against the dollar.

[Renminbi] The offshore renminbi exchange rate stood at 6.8078 yuan per US dollar.

In late New York trading, the offshore renminbi weakened by 54 points compared to the previous session, closing at 6.8078 yuan per US dollar. Meanwhile, the onshore renminbi appreciated by 134 points against the US dollar compared to the previous close, ending at 6.8015 yuan.

[Digital Assets] Digital asset market declined, with Bitcoin falling over 1.5%.

On Thursday, amid escalating tensions between the US and Iran near the Strait of Hormuz, risk-off sentiment grew, leading to a downturn in the digital asset market. Bitcoin extended its losses, stabilizing around $80,000 during late trading, with daily declines exceeding 1.5%.

– Product

[Energy] Crude oil prices remained largely unchanged.

Crude oil prices remained largely flat as the market was in a wait-and-see mode, with an overall trend of initial decline followed by a rise. In late New York trading, U.S. crude futures fell 0.28%, settling at $94.81 per barrel.

[Precious Metals] Mixed performance in metal markets, with gold and silver prices continuing to rise.

Precious Metals:Gold prices edged higher but gains were trimmed amid tensions in the Strait of Hormuz. In late New York trading, spot gold rose 0.22% to $4,701.61 per ounce, while U.S. gold futures climbed 0.36% to $4,711.40 per ounce.

Metals Futures Market:Precious metals and nonferrous metals saw mixed performances, with silver prices continuing to rise. Spot silver surged 2.35% to $79.17 per ounce, while U.S. silver futures jumped 3.02% to $79.64 per ounce. U.S. copper futures fell nearly 1% to $6.127 per pound, and London aluminum futures dropped 0.1% to $13,372.5 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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