Financial Daily: Earnings reports from US tech giants spark concerns, Nasdaq plunges over 2%! Global equities and commodities face a critical test

– Hot Topics

– The European Central Bank kept interest rates unchanged, but ECB President Christine Lagarde said discussions on tightening policy were briefly triggered during the meeting due to rising oil prices

– The European Commission stated that Google has been fined approximately $1 billion for violating EU regulations

– Reuters reported that a U.S. White House official stated the United States will impose new tariffs of 10% and 12.5% on 60 trading partners on Friday, replacing the expiring 10% temporary global tariff.

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– Stock Markets

[U.S. Markets] Tech giants' earnings reports spark concerns over AI investment returns, sending the three major U.S. stock indices sharply lower.

On Thursday, all three major U.S. stock indices closed significantly lower, weighed down by market concerns over returns on AI-related capital expenditures triggered by tech giants' earnings reports, alongside surging oil prices fueling expectations of higher interest rates. The S&P 500 fell 1.21% to close at 7,408.30 points, marking its steepest single-day decline in nearly a month; the Nasdaq dropped 2.15% to 25,137.692 points; and the Dow Jones Industrial Average declined 0.97% to 51,711.65 points. The Philadelphia Semiconductor Index slipped 0.54% to 12,343.837 points, while the VIX fear gauge rose 12.38% to close at 18.70.

The index tracking the Magnificent Seven U.S. tech stocks plunged 3.86%, marking its worst single-day performance since April 2025. Tesla tumbled 14.5%, Alphabet A fell 7.13%, Amazon dropped 4.57%, Meta declined 3.36%, Microsoft slid 2.24%, NVIDIA lost 1.56%, and Apple dipped 1.30%. The Nasdaq Golden Dragon China Index closed down 0.57% at 6,145.46 points. Among notable Chinese ADRs, Alibaba fell 2.1%, Meituan rose 2.4% against the broader trend, and Pony AI surged 7.5%. In individual stocks, Circle dropped 6.02%, and Taiwan Semiconductor ADR declined 1.36%.

[European Markets] Major European equity indices declined across the board, with the pan-European index falling more than 1%.

On Thursday, major European equity indices broadly closed significantly lower, with technology and banking stocks acting as primary drags. At the close, the pan-European STOXX 600 Index fell 1.18% to 639.27 points; the STOXX Europe 50 Index dropped 1.69% to 6,210.17 points, slipping steadily after opening slightly lower.

Germany's DAX 30 Index closed down 1.56% at 24,763.12 points; France's CAC 40 Index declined 1.64% to 8,299.09 points; the UK's FTSE 100 Index fell 0.73% to 10,639.17 points; and Italy's FTSE MIB Index dropped 2.80% to 51,315.84 points.

[Asian Markets] Asian equities generally advanced on Thursday, with South Korea’s KOSPI Index surging over 4%.

Asian stock markets posted broad gains on Thursday, with South Korean equities showing exceptional strength, driven by a rebound in semiconductor stocks. At the close, Japan’s Nikkei 225 rose 0.46% to 66,422.60 points; South Korea’s KOSPI Index jumped 4.40% to 7,096.89 points, led higher primarily by heavyweight semiconductor stocks. Singapore’s Straits Times Index edged down 0.24% to 5,581.76 points, while Thailand’s SET Index gained 0.06% to close at 1,640.35 points.

[Hong Kong Market] All three major Hong Kong stock indices strengthened, with the Hang Seng Index reclaiming the 25,200 level.

On Thursday, Hong Kong's three major indices all rose, with the Hang Seng Index reclaiming the 25,200-point level and the Hang Seng China Enterprises Index also posting a gain of over 1%. At the close, the Hang Seng Index rose 1.28% to 25,210.81 points; the Hang Seng Tech Index gained 0.65% to 4,697.48 points; and the Hang Seng China Enterprises Index climbed 1.23% to 8,352.67 points.

In terms of sectors, heavy machinery and infrastructure-related stocks stood out. China National Heavy Duty Truck Group surged 10.82%, Zoomlion gained 3.69%, and Sany International rose 2.40%. Building materials and cement stocks also strengthened, with Dongwu Cement up 7.06% and Huaxin Cement rising 3.73%. The lithium battery supply chain also posted strong gains. Ganfeng Lithium released its interim earnings forecast, expecting attributable net profit of RMB 3.65–4.6 billion, representing a year-on-year increase of 787%–966% compared to a net loss of RMB 531 million in the same period last year. The announcement boosted its share price by 9.88%. Tianqi Lithium rose 6.96%, China Aviation Lithium Battery gained 5.15%, and CATL advanced 2.79%. Semiconductor stocks remained under pressure, with Hua Hong Hongli falling 7.49%, SMIC dropping 2.95%, GigaDevice declining 4.20%, and Montage Technology slipping 2.38%.

[A-Share Market] China’s three main A-share indices edged higher, while the STAR Market 50 Index dropped nearly 3.8%

On Thursday, all three major A-share indices closed slightly higher: the Shanghai Composite Index rose 0.25% to 3,876.78 points; the Shenzhen Component Index gained 0.44% to 14,123.31 points; the ChiNext Price Index increased 0.25% to 3,575.52 points; and the STAR Market 50 Index tumbled 3.78%, briefly falling more than 4% intraday.

In sector and thematic performance, power grid equipment and ultra-high-voltage related stocks surged, with Shuangjie Electric, Zhongneng Electric, and JG Electrical all hitting the 20% daily trading limit. Shares including XD Electric, Dalian Insulator, and Tongda Cable also collectively reached their upper circuit limits. The National Development and Reform Commission and the National Energy Administration jointly released the '15th Five-Year Plan for Renewable Energy Development,' proposing to moderately advance power grid infrastructure construction, while expectations of rising electricity demand from AI computing continued to build. Lithium mining and energy metals stocks performed strongly, with Chengxin Lithium Energy, Yongshan Lithium Industry, Guocheng Mining, and Sichuan Energy Power all reaching their daily trading limits, and Ganfeng Lithium rising 7.93%. The entire semiconductor supply chain underwent corrections, becoming the primary drag behind the sharp decline in the STAR Market 50 Index. Hua Hong Hongli plunged 12.58%, bringing its price down more than 30% from its July 21 rebound high; Yandong Microelectronics fell 10.55%, Yongji Electronics declined 9.44%, and SMIC dropped 6.75%.

- Bonds

[U.S. Treasuries] Escalating Middle East tensions fueled safe-haven demand, pushing U.S. Treasury yields higher

On Thursday, U.S. Treasury yields continued their upward trend, as oil prices breaching USD 100 intensified market concerns about reignited inflation. At the New York close, the yield on the 10-year U.S. Treasury note rose 4.27 basis points to 4.6972%; the 2-year yield climbed 5.35 basis points to 4.3512%; and the 30-year yield increased 2.21 basis points to 5.1669%.

[Non-US Bond Market] Yields on government bonds in major European countries generally rose

Government bond yields across major European countries rose broadly, following the upward trajectory of U.S. Treasury yields, as market worries about energy-driven inflation persisted. Germany’s 10-year Bund yield rose 3.2 basis points to 3.203%, and its 2-year yield climbed 4.3 basis points to 2.885%. The UK’s 10-year gilt yield increased 6.9 basis points to 5.104%, and its 2-year yield rose 6.8 basis points to 4.490%. France’s 10-year OAT yield gained 4.8 basis points to 4.017%, and its 2-year yield rose 5.3 basis points. Italy’s 10-year BTP yield climbed 5.7 basis points to 4.049%.

[China Bond Market] Treasury futures were mixed, with long-end contracts strengthening

On Thursday, Chinese treasury futures moved in mixed directions, with long-end contracts posting gains while short-to-medium-end contracts generally declined. At the close, the front-month 30-year treasury futures contract rose 0.20%, the 10-year contract fell 0.08%, the 5-year contract dropped 0.08%, and the 2-year contract declined 0.03%.

– Foreign exchange

[USD] The dollar index continued its rebound, while the yen fell 0.4%.

On Thursday, the dollar index remained strong, supported by safe-haven demand triggered by soaring oil prices and rising expectations of interest rate hikes. At the New York close, the ICE U.S. Dollar Index rose 0.33% to 101.458, while the Bloomberg Dollar Spot Index gained 0.26% to 1,222.78.

The dollar strengthened broadly against major global currencies: USD/JPY rose 0.40% to 163.80; EUR/USD fell 0.32% to 1.1375; GBP/USD declined 0.45% to 1.3315; USD/CHF increased 0.31%; and AUD/USD dropped 0.48%.

[CNY] The offshore yuan traded at 6.7775 per U.S. dollar.

At the New York close, the U.S. dollar rose 24 pips against the offshore renminbi from the previous session’s close, trading at 6.7775. The onshore renminbi weakened 27 pips from the previous session’s late-night fix, closing at 6.7777 per U.S. dollar.

[Digital Assets] The cryptocurrency market weakened overall.

On Thursday, the cryptocurrency market broadly declined, following the downward trend in risk assets, with Bitcoin briefly falling below the $65,000 level.

– Products

[Energy] Ongoing Middle East tensions continued to push oil prices higher, with Brent crude futures breaking above the $100 mark again.

Amid escalating conflict in the Middle East, oil prices posted one of their sharpest gains since the outbreak of war, with Brent crude surpassing $100 per barrel for the first time since May. At the New York close, U.S. crude futures rose 6.17% to settle at $92.19 per barrel, while Brent crude futures climbed 7.04% to settle at $100.69 per barrel.

[Precious Metals] Gold prices came under pressure, testing the $4,000 level.

Precious Metals:Gold prices weakened significantly, pressured by a stronger dollar and margin calls stemming from risk-asset sell-offs. At the New York close, spot gold fell approximately 1.96% to $4,049.48 per ounce, while US gold futures declined 2.00% to $4,052.30 per ounce.

Metals Futures Market:At the New York close, spot silver dropped 3.60% to $57.5967 per ounce; US silver futures fell nearly 4% to $57.895 per ounce; US copper futures declined 2.40% to $6.3375 per pound. Spot platinum fell 2.25%, and spot palladium dropped 2.86%.

[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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