[Investment Morning News｜9/24]

The three major indexes on Wall Street pulled back overnight. The S&P 7697 (-0.87%), the Nasdaq 26894 (-1.29%), and the Dow 51567 (-0.57%). The yield on the 10-year U.S. Treasury rose to around 5.11%, retreating back toward levels seen in 2007. Oil prices stopped falling and rebounded. U.S. initial data on business activity was somewhat strong, but concerns about inflation and interest rates returned. Tech stocks led the decline: Alphabet-A closed at 337.83 (-3.80%), Nvidia at 225.51 (-1.47%), and Micron at 1071.88 (-2.22%). Within the benchmark weights, performance diverged: Meta closed at 744.10 (+1.02%) and Tesla at 380.12 (+0.32%). Sentiment is still concentrated on the storage/semiconductor narrative, but most chip-related names pulled back with the broader market overnight.

Open with a cautious bias toward A. Rate shocks are more likely to suppress semiconductors/compute, as well as map onto AI hardware; a rebound in oil prices provides sentiment support for oil & gas. The main reason is that the rate shock coincides with a per-share drag from Google.

Yesterday’s close in A: Shanghai Composite 3936.52 (-0.39%). It held above the 5-day line around 3925 and the 20-day line around 3930. Shenzhen Component 13636 (-0.64%), slightly below the 20-day line around 13660. ChiNext 3379.61 (-0.60%). STAR Market 1660.85 (-0.25%). The latter two are still above the 5/20-day moving averages.

Today, first look at the sentiment from U.S. Treasuries and index futures, whether the Shanghai Composite around 3930 can hold, and the opening strength of semiconductors/compute.

Data source: FTShare+public reports (as of about 8:12 Asia/Shanghai). Not investment advice.