U.S. Stocks Rise, China Index Plunges Most in 2 Years
U.S. tech stocks revel, yet Chinese concept stocks collectively plunge:
It's a rare sight to behold, as the three major U.S. stock indices have all closed higher. The Dow Jones Industrial Average rose by 126.13 points, a gain of 0.30%, the Nasdaq Composite jumped by 259.02 points, a surge of 1.45%, and the S&P 500 Index climbed by 55.19 points, an increase of 0.97%! These tech stocks are as if they've been injected with adrenaline, with all of them turning red across the board. Nvidia saw an increase of over 4%, Netflix also rose by more than 2%, and the titans like Apple, Amazon, Facebook, and Microsoft all experienced gains of over 1%. Although Google's rise wasn't significant, it was still a steady and solid performance. However, amidst the fanfare, there's a stark contrast with a scene of widespread despair, as bank stocks fluctuate and energy stocks plummet across the board. ConocoPhillips and Schlumberger have seen a dire drop of over 3%, ExxonMobil and Occidental Petroleum also fell by more than 2%, and Chevron plummeted by more than 1%, which is a moment of empathy.
What's even more perplexing is that the Nasdaq Golden Dragon China Index has plummeted by 6.85%, marking the largest single-day drop since October 2022, spanning an entire year from October last year to now! The Chinese concept stocks are also a sea of green, with Jinko Energy and Daqo New Energy falling by about 20%, EHang and Dada Group dipping by over 16%, and Tiger Brokers also experiencing a drop of around 16%. Kingsoft Cloud, Gaotu Group, and Lufax Holdings have all seen declines exceeding 14%, Bilibili and Weibo fell by over 12%, while Canadian Solar and Trip.com Group have dropped by about 10%. Even the big names like Beike, Li Auto, and NIO have seen declines of around 8%, and even major companies like JD.com, Baidu, and XPeng Motors have fallen by more than 7%. This is nothing short of an epic plunge!
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Tech stocks revel, energy stocks plunge:
Speaking of which, why have tech stocks suddenly become so exhilarated? According to a Reuters report, it might be because investors are starting to favor tech stocks again, and with everyone focusing on the upcoming inflation data and third-quarter earnings reports, they have all turned their attention to tech stocks.Why are the energy stocks suffering so much? The price of light crude oil futures for November delivery at the New York Mercantile Exchange fell by $3.57, closing at $73.57 per barrel, a drop of 4.63%. The price of Brent crude oil futures for December delivery in London also fell by $3.75, closing at $77.18 per barrel, with the same percentage drop of 4.63%. It seems that the decline in oil prices is the main culprit behind the plunge in energy stocks!
European stock markets are all falling:
The situation in the European stock markets is also not calm, with all three major stock indices falling. It seems that the global economic situation remains uncertain! The US Dollar Index rose by 0.01% on the day, closing at 102.549 in the foreign exchange market, and the exchange rates of major currencies such as the euro, pound, yen, Swiss franc, Canadian dollar, and Swedish krona also fluctuated, indicating that the foreign exchange market is also turbulent!
Why are Chinese concept stocks diving collectively?
The most incomprehensible thing is the collective dive of Chinese concept stocks, which is the largest single-day drop since last October! Is there a problem with the domestic economy? Or are there inherent risks in Chinese concept stocks?
Looking back, Chinese concept stocks have indeed been turbulent in recent years. On one hand, domestic internet industry regulation has become stricter, and on the other hand, the auditing requirements for Chinese concept stocks in the US have become increasingly demanding. Many Chinese concept stocks even face the risk of delisting, coupled with increased global economic downward pressure and insufficient investor confidence, which is why we see such a large-scale selling wave today.
However, some people believe that this decline in Chinese concept stocks is just a short-term fluctuation. In the long run, China's economy still maintains a stable and positive development trend, and the investment value of Chinese concept stocks still exists. Therefore, this decline may be a good opportunity to bottom fish.
To be honest, I can't see the future trend clearly. I can only say that the stock market has risks, and investment should be cautious. However, I still hope that US stocks, European stocks, and Chinese concept stocks can stabilize their positions. After all, the global economy is integrated, and we all rise and fall together. Let's work together to overcome the difficulties!
"Chinese concept stocks, what's going on? Why are they diving at the drop of a hat?"
"Tech stocks, are they going to the sky? Can we still have fun?"The US Dollar Index has risen again; it seems like it's time to exchange for US dollars again.
The recent plunge in Chinese concept stocks is indeed a bit frightening, but one cannot dismiss them outright. After all, the resilience of China's economy is relatively strong, and in the long run, Chinese concept stocks still have investment value. Of course, the prerequisite is that you must be able to withstand such roller-coaster-like fluctuations. As for the US stock market, I'll reiterate my previous statement: the stock market carries risks, and investment should be approached with caution. Don't put all your eggs in one basket; diversified investment is the key.
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