US stocks rose last night with all three major indices advancing, led by a chip stock rebound that pushed the Philadelphia Semiconductor Index up 3.06% to 12960. The Dow Jones gained 139 points or 0.27% to 52487, the S&P 500 rose 60 points or 0.81% to 7543, and the Nasdaq climbed 1336 points or 1.3% to 26206. Hong Kong stocks fell 169 points or 0.7% to 24030 after earlier rising to an intraday high of 24335, with turnover reaching HK$377.2 billion and northbound capital flows recording nearly HK$10 billion in net inflows. Hong Kong stocks have rallied in July driven by pair trade unwinding, but analysts note resistance at technical levels including the 10-week line around 24600 and the 50-day line near 25000.
Philadelphia Semiconductor Index Rebounds 3.06% as US Chip Stocks Rally
The Philadelphia Semiconductor Index rebounded 3.06% to close at 12960 last night, after earlier reaching an intraday gain of 5.36%. The Dow Jones Industrial Average rose 139 points or 0.27% to 52487, the S&P 500 index gained 60 points or 0.81% to 7543, and the Nasdaq Composite climbed 1336 points or 1.3% to 26206. The chip sector led the broader market recovery across all three major US stock indices.
Hong Kong Stocks Fall 169 Points After Intraday High of 24335
Hong Kong stocks gave back earlier gains yesterday, falling 169 points or 0.7% to close at 24030 after reaching an intraday high of 24335. The market dropped as much as 282 points during afternoon trading to a low of 23917 before recovering into the close. Trading turnover reached HK$377.2 billion, with northbound capital flows recording nearly HK$10 billion in net inflows. Following Wednesday's sharp rebound, Hong Kong stocks have rallied in July supported by pair trade unwinding that brought positive fund flows.
Analysts identify resistance at the 10-week moving average near 24600 and the 50-day moving average around 25000. Support levels include the 20-day moving average at approximately 23750, the 100-month moving average near 23600, and the 10-day moving average around 23350. Hong Kong stocks have established a position above the 20-day moving average, positioning the market to challenge the 10-week and 50-day moving averages. Memory stocks and AI technology stocks showed renewed strength in recent sessions.
BlackRock Analyst Forecasts AI Investment Theme to Sustain Two to Three Years
Helen Jewell, Director of International Equity Investments at BlackRock, stated in a Bloomberg Television interview that the investment theme surrounding AI spending should sustain for two to three years, even as large technology companies' cash flows turn negative and they begin debt financing. Jewell identified three competing forces dominating daily market movements: macro factors including oil prices and interest rate expectations, corporate earnings, and positioning, with earnings being the most important factor. For portfolio diversification, Jewell recommended adding exposure to the healthcare sector and markets in the United Kingdom and Latin America.
FAQ
What were the closing levels for US stock indices last night?
The Dow Jones closed at 52487 (up 139 points or 0.27%), the S&P 500 closed at 7543 (up 60 points or 0.81%), the Nasdaq closed at 26206 (up 1336 points or 1.3%), and the Philadelphia Semiconductor Index closed at 12960 (up 3.06%).
What technical resistance levels do analysts identify for Hong Kong stocks?
Analysts note resistance at the 10-week moving average near 24600 and the 50-day moving average around 25000. Support levels include the 20-day moving average at approximately 23750, the 100-month moving average near 23600, and the 10-day moving average around 23350.
How long does BlackRock expect the AI investment theme to continue?
Helen Jewell of BlackRock stated in a Bloomberg Television interview that the investment theme surrounding AI spending should sustain for two to three years, despite large technology companies' cash flows turning negative and beginning debt financing.
