Market analysis on August 8

The release of the latest US employment data allayed market concerns about the economic recession, which in turn prompted US stocks to open higher across the board and close near daily highs. The S&P 500 Index rose more than 2%, the biggest one-day gain since November 2022, and the Nasdaq Composite Index also rose nearly 2.9%. The Dow Jones Industrial Average rose strongly by more than 680 points, while the small-cap index rose 2.4%, and the China Securities Index rose 2.8%.

In terms of individual stock performance, the chip stock index led the increase, surging about 7%. Nvidia rose more than 6%, breaking away from its lowest point of nearly two and a half months. Apple rose for the second day in a row, while Tesla and Meta rose 3.7% and more than 4%, respectively. Chinese electric vehicle manufacturer NIO rose nearly 4%, while Alibaba, Pinduoduo, and Tencent's American Depositary Receipts (ADR) all rose more than 3%. In terms of pharmaceutical stocks, Eli Lilly rose more than 13% after announcing favorable earnings reports, and eventually closed up more than 9%. Novo Nordisk's US stock also rose 7.5%.

Despite facing the challenge of low demand for 30-year US bond auctions, US stocks remained stable. Meanwhile, the sell-off of US bonds caused 10-year US bond yields to break through 4% again, and short-term bond yields rose by 10 basis points at one point.

In the commodity market, favorable demand expectations and tension in the Middle East have driven oil prices to rise for the third day in a row. The price of US crude oil rose more than 1%, breaking the 76 US dollar mark, and the price of Brent crude oil also exceeded 79 US dollars, setting a new high during the month. In terms of gold prices, safe-haven demand and expectations that the Federal Reserve might cut interest rates prompted the price of gold to end five consecutive declines. At one point, the price of spot gold rose 1.8%, breaking through 2,420 US dollars. Most varieties in the London metal market also closed higher, and copper prices broke away from a five-month low.

The dollar strengthened, recovering some of its losses since last Friday, while the yen fell for the third day in a row. The offshore RMB exchange rate against the US dollar fell by more than 110 points and fell below the 7.18 mark. In the cryptocurrency market, the price of Bitcoin rose 8%, breaking the $0.059 million mark, and the price of Ethereum also rose 10%.

In the Asian market, all three major Chinese A-share indices have turned red, with brokerage and liquor stocks leading the way. Meanwhile, the treasury bond market fell across the board in the afternoon.