Traditional big tech stocks rallied while semiconductor stocks declined as capital rotated out of AI-related equities following ASML's earnings report and persistent concerns over the AI sector's outlook. US inflation data showed pressure easing more than market expectations. Hong Kong's Hang Seng Index rose 340 points to close at 24,681, with night futures approaching the 25,000 level and testing the 50-day moving average resistance. The divergence reflects investor caution on AI valuations amid softer macroeconomic signals, while the Hong Kong market's rebound has accumulated over 2,000 points since late June as funds shift toward traditional technology and biotech sectors.
US Stock Indexes Post Mixed Session as Chip Stocks Decline
The Dow Jones Industrial Average closed at 52,658, up 150 points or 0.29%. The S&P 500 rose 28 points or 0.38% to 7,572, while the Nasdaq Composite gained 162 points or 0.62% to 26,269. The Philadelphia Semiconductor Index fell 2.08%. Among the Magnificent Seven tech stocks, all advanced except Tesla, which declined after SpaceX dropped below its $135 IPO price for the first time. Google and Amazon both rose approximately 3%. Alibaba announced its Qwen AI system will integrate with Apple's intelligence platform for users in China.
Hang Seng Index Challenges 50-Day Moving Average Resistance
The Hang Seng Index opened 210 points higher and extended gains to over 400 points intraday before closing up 340 points at 24,681. Turnover reached HK$304.2 billion. During the night futures session, the index expanded gains further, with night futures reaching a high of 24,958, approaching the 25,000 level. The index opened 143 points higher at 24,841, breaking above the 50-day moving average at approximately 24,800. Half-day gains expanded to a maximum of 507 points or 2.1%, reaching a high of 25,188, with the half-day close at 25,157 points, up 476 points or 1.93%. The Hang Seng China Enterprises Index rose 185 points or 2.26% to 8,369 points. The Hang Seng Tech Index outperformed, climbing 145 points or 3.08% to 4,886 points. Half-day turnover totaled HK$178.051 billion. Northbound capital inflows reached HK$3.717 billion.
Key technical support levels include the 50-day moving average, the 5-day line at approximately 24,500, the 10-day line at approximately 24,100, and the 20-day line at approximately 23,739. The index has rebounded over 2,000 points since late June.
FAQ
What caused the divergence between chip stocks and traditional tech stocks?
Capital rotated out of AI-related semiconductor stocks due to persistent concerns over the AI sector's outlook, despite ASML reporting strong earnings. Traditional big tech stocks rallied as the Philadelphia Semiconductor Index fell 2.08% while the Nasdaq Composite gained 0.62%.
Why did Hong Kong's Hang Seng Index approach the 25,000 level?
The Hang Seng Index rose 340 points to close at 24,681, with night futures reaching 24,958 as the index tested the 50-day moving average resistance. The rebound reflects capital shifting toward traditional technology and biotech sectors, with the index accumulating over 2,000 points in gains since late June.
