Nasdaq Rallies as Bitcoin Plunge Triggers Market Contagion: Global Markets See Increased VolatilityAs the evening unfolded, a dramatic shift in sentiment played out in the US stock market. After all three major indices declined during the day, the Nasdaq unexpectedly staged a comeback, with Nvidia leading the charge with a more than 3% gain
Nasdaq Rallies as Bitcoin Plunge Triggers Market Contagion: Global Markets See Increased Volatility
As the evening unfolded, a dramatic shift in sentiment played out in the US stock market. After all three major indices declined during the day, the Nasdaq unexpectedly staged a comeback, with Nvidia leading the charge with a more than 3% gain. However, the dramatic volatility in the Bitcoin market created a different story altogether. Not only did it send the Nasdaq China Golden Dragon Index tumbling, pushing it below the 3% mark, but it also put downward pressure on the broader Chinese ADR sector.
The ripple effects quickly spread throughout the financial markets. The S&P 500 futures fell by more than 1%, Bitcoin continued its slide, briefly dipping below the $60,000 psychological mark within 24 hours, leading to margin calls for over 93,000 investors. Precious metals were not spared either, with both gold and silver experiencing a sharp short-term decline. European equities also failed to escape the downturn, with major markets in the UK, France, and Germany underperforming.
The impact was also felt in Asian markets. October 3rd saw a correction in the Hong Kong stock market, with the Hang Seng Index, the Hang Seng China Enterprises Index, and the Hang Seng Tech Index all declining. The Hang Seng Tech Index suffered a particularly sharp drop of 3.46%. While trading was active, it couldn't disguise investor apprehension.
On the economic data front, the latest US initial jobless claims report came in slightly higher than expected, hinting at potential concerns within the labor market. The recovery momentum in the services sector also appeared slower than anticipated, with the final reading of the S&P Global Services PMI failing to meet previous optimistic forecasts.
Despite the relatively weak economic data, international investment institutions' enthusiasm for Chinese assets has not waned. On the contrary, major foreign banks like JPMorgan Chase are increasing their exposure. According to the Hong Kong Stock Exchange, JPMorgan Chase significantly increased its stake in the exchange on September 27th, leading to a notable rise in its ownership. This move undoubtedly injected a dose of confidence into the Hong Kong market. Furthermore, both Tsingtao Brewery and BYD Company received increased investments from JPMorgan Chase, demonstrating foreign firms' continued belief in high-quality Chinese companies.
Zhang Yidong, Global Chief Strategy Analyst at CICC, points out that the current volatility in the Hong Kong market is a powerful confirmation of a reversal logic, not a temporary rally. Looking ahead, the Hong Kong and Chinese ADR markets are expected to transition from recent rapid rallies to a more stable, volatile reversal trend, presenting more opportunities for investors.
As global market volatility intensifies, investors should closely monitor market developments, invest cautiously, and engage in appropriate asset allocation based on their individual risk tolerance.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
