Markets responded strongly Tuesday as US tech stocks surged on lighter inflation and regulatory rollback. Chipmakers powered ahead, with Nvidia jumping over 5%. The S&P 500 closed slightly higher, wiping out its 2024 losses. Meanwhile, inflation data came in cooler than expected, further calming markets.
US Market Highlights
Stocks were mixed, but tech led the charge. The Nasdaq soared over 300 points, while the S&P 500 ticked up 0.72%, buoyed by:
- US Commerce Department scrapping a Biden-era rule that restricted AI chip exports.
- April CPI rising just 2.3% YoY — the lowest in over four years, signaling steady inflation.
The now-rescinded regulation would’ve imposed three-tiered AI export controls set to take effect May 15. Sources say the Trump campaign is working on a replacement approach, possibly involving separate deals with key countries.
Trump’s Middle East tour also lit a fire under market sentiment. Following talks with Saudi Crown Prince Mohammed bin Salman, he reportedly secured a $600 billion investment deal, spanning energy and defense. Notably, Nvidia will supply AI chips to Saudi company Humain, which—alongside AMD—plans to invest $10 billion in AI infrastructure over the next five years. Amazon, Cisco, and Google are also eyeing investment or partnerships in the region.
CPI Insights:
April’s CPI slowdown reflects easing inflation, but Nick Timiraos (a key Fed watcher) warned that tariff-driven price pressures haven’t yet shown up in the data. The Fed is likely to wait for more signals before acting.
US Stock Market Recap
Semiconductors surged:
- Nvidia +5.3% (best close since Feb. 27)
- Broadcom +4.9%
- AMD +4%
- TSMC +3.2%
Big tech mostly gained:
- Tesla +4.9% (highest since Feb. 24)
- Netflix, Meta +2%+
- Apple, Amazon, Intel +1%+
- Google slightly up
- Microsoft slightly down
Chinese ADRs mostly fell:
- Nasdaq Golden Dragon Index -0.07%
- Pony.ai -10%
- WeRide -6%+
- Bilibili, TAL Education -2%+
- Nio, XPeng nearly -2%
US Market – Technical Analysis
US Index Snapshot:
- Dow -269.67 pts (-0.64%) → 42,140.43
- Nasdaq +301.74 pts (+1.61%) → 19,010.08
- S&P 500 +42.36 pts (+0.72%) → 5,886.55
Hong Kong Market Highlights
Hong Kong stocks rose across the board. Tech led the way:
- Baidu, JD.com, Xiaomi +2%+
- Tencent, NetEase, Alibaba, Meituan +1%+
Shipping & ports surged, with Blue River Holdings up over 20%.
Insurance stocks gained, led by China Taiping (+6%), after new elder care service standards were issued by the Insurance Association. Supportive policy signals—including rate cuts and liquidity measures from the PBOC—also lifted sentiment.
Guangzhou rolled out a fresh plan to boost elder care finance, reinforcing the sector’s long-term policy tailwind.
Hong Kong Market – Technical Analysis
Hong Kong Index Snapshot:
- Hang Seng +1.43% → 23,438.11
- Hang Seng Tech +1.37% → 5,341.68
- China Enterprises Index +1.54% → 8,515.45
A-Share Market Midday Recap
Mainland markets were mixed in the morning session, with over 3,800 stocks down. Total turnover hit ¥735.6 billion, down ¥171.6 billion from the previous session.
Top gainers:
- Shipping & logistics: COSCO Shipping, Ningbo Port, Nanjing Port hit limit-up
- Chemicals: Suzhou Longjie hit 4 consecutive limit-ups
- Rare earths
Lagging sectors:
- Solar: Daqo New Energy, Risen Energy fell sharply
- Consumer electronics: Chaoyang Tech, Tony Electronics slid
- Precious metals
China Market – Technical Analysis
A-Share Index Snapshot (midday):
- Shanghai Composite +0.19% → 3,381.17
- Shenzhen Component -0.26% → 10,261.62
- ChiNext -0.22% → 2,057.72
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