US Stocks Rally, Nvidia's Market Value Soars by $895B; A50 Up 2.69%, Foreign Institutions Bullish on Chinese Assets

On October 8th local time, the three major U.S. stock indices closed higher collectively, with the Dow Jones Industrial Average (DJIA) rising by 0.3%; the Nasdaq Composite increased by 259.02 points, a gain of 1.45%; the S&P 500 index climbed by 0.97%.

Large-cap technology stocks saw widespread gains, with Apple, Microsoft, Tesla, Meta, and Amazon all rising by more than 1%. Semiconductors and software applications were among the top gainers, with Broadcom surging by over 3%, and Arm and AMD both increasing by more than 1%. Oil and gas, as well as non-ferrous metals, were among the top losers, with Vale, Pan American Silver, Rio Tinto, and Alcoa all falling by more than 4%, while BP and Southern Copper fell by more than 3%, and Shell and Exxon Mobil dropped by over 2%.

Nvidia rose by more than 4%, adding $126.8 billion (approximately 89.52 billion yuan) to its market value overnight. Nvidia kicked off its "AI Summit" in Washington D.C. on October 8th local time. Bob Pette, Vice President and General Manager of Nvidia's enterprise platform, stated at the conference that the world is now on the "cusp of seeing more industries adopting AI," and he expects artificial intelligence to have an impact of up to $20 trillion across all industries utilizing the technology. In Tuesday's keynote speech, Pette focused on explaining the "next phase of artificial intelligence," with applications ranging from advanced AI agents to factories operated by robots, as well as weather forecasting, cancer treatment, and the exploration of extraterrestrial life.

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After the short-selling firm Hindenburg Research announced a short position on the online gaming platform Roblox, the company's stock price fell by nearly 9.4% at one point during trading on October 8th local time, reaching a new low since early August. By the close of trading, Roblox was reported at $40.52, down by 2.1%, with a market capitalization of $26.23 billion.

Popular Chinese concept stocks generally declined, with the NASDAQ Golden Dragon China Index falling by 6.85%. Futu Holdings fell by more than 13%, Bilibili and Weibo both fell by more than 12%, Li Auto and NIO fell by more than 8%, JD.com, Baidu, and XPeng Motors fell by more than 7%, iQIYI and Alibaba fell by more than 6%, Pinduoduo, Tencent Music, and NetEase fell by more than 5%, Vipin fell by more than 4%, and Full Truck Alliance fell by more than 2%.

The FTSE A50 futures continued to rise by 2.69% in the night session, closing at 14,550 points.

The WTI crude oil futures settlement price fell by 4.63%, reported at $73.57 per barrel. The Brent crude oil futures settlement price dropped by 4.6%, at $77.18 per barrel.

COMEX gold futures closed down by 0.8%, at $2,640.6 per ounce; COMEX silver futures fell by 3.29%, at $30.89 per ounce.

According to Securities China, despite adjustments in Chinese concept stocks, the stance of foreign institutions remaining bullish on Chinese assets in the medium to long term has not wavered.

Morgan Stanley's Chief Asia Equity Strategist, Guo Shengqiang, and his team released a report stating that, aside from the Hang Seng Index, they have raised the basic target for the Hang Seng China Enterprises Index for next year from 6,000 points to 7,950 points, with the best and worst predictions for the index at 9,700 points and 4,800 points, respectively.Known as the "Godfather of Emerging Markets," legendary American investor Mark Mobius said on October 7th that if China continues to introduce measures to support the market, the rise in the A-share market may continue. "The bearish sentiment has been broken, so we can expect the market to continue to rise," Mobius said. He also pointed out that how long the rise can last will depend on "the government's measures to increase market liquidity."

Ben Harburg, Managing Partner of MSA Capital and Portfolio Manager of the CVA Greater China Growth ETF Fund, said in an interview on October 4th that he made a lot of purchases at the beginning of this round of A-share market rise, and then shifted back to Chinese concept stocks such as Pinduoduo and Tencent. In his view, as Western investors refocus on the Chinese market, these fundamentally sound companies will attract a large amount of foreign capital.

Federal Reserve's Collins said that he is increasingly convinced that the inflation rate will return to 2% in a timely manner; he expects the U.S. inflation rate to drop to 2% against the backdrop of a healthy job market; current data shows that the U.S. job market is generally healthy; in terms of interest rate cuts, a cautious, data-based approach is appropriate; it is necessary to focus on maintaining the good state of the U.S. economy; there is a risk of the U.S. economy declining beyond the necessary extent.