In the quiet hours of night, a storm brews in the financial marketsChinese stocks face a tempest of change, shaking investor confidence.

On February 24th, Eastern Time, the three major U.S. stock indices displayed mixed performances at the closing bellThe S&P 500 fell by 0.5%, settling at 5983.25; the Nasdaq Composite Index dropped 1.21% to 19286.92, while the Dow Jones Industrial Average edged up by 0.08% to 43461.21.

In stark contrast, Chinese stocks took a hard hit, as the Nasdaq Golden Dragon China index plummeted by 5.24%.

01 Chinese Markets Open Lower

On February 25th, the A-shares opened lower across the boardBy 11:00 AM, the Shanghai Composite Index was down by 0.31%, the Shenzhen Component dropped by 0.65%, and the ChiNext Index fell by 0.75%. There was a notable decline in AI computing stocks, particularly in the server sector, while AI application concepts like DeepSeek also faced significant downturns.

Zhang Yidong, Chief Strategist at Industrial Securities, remains optimistic about the A-share market over the next two or even three years, predicting that it will outperform the H-share market in the coming couple of years and surpass the U.S. market within the next two years.

Zhang emphasized that the premium stocks held by local governments are aligned with new productive forces, including sectors like new materials, renewable energy, biomedicine, artificial intelligence, chips, and robotics

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Consequently, a bull market is expected to enhance the discovery of value, with a "technology bull" set to dominate this cycleFurthermore, once these local government assets are revitalized, domestic demand issues will improve, benefiting both residential and corporate balance sheetsThis dual scenario of a technology and demand-driven bull market paints a hopeful picture.

Meanwhile, Wu Qing stated that market functionality will be fully leveraged to spark vitality within the market, further highlighting the capital market's role in promoting a new type of industrialization, ultimately aiding the construction of a modern industrial system vital for China’s national rejuvenation.

02 Warnings of Potential U.SStock Market Decline

On the evening of February 24th, U.SPresident made it known that plans to impose tariffs on Mexico and Canada would progress as scheduledThese tariffs are set to take effect on March 4th, following earlier decisions.

This tariff strategy is becoming a focal point of concern for Wall Street, raising alarms over potential repercussions.

Prominent investment bank Stifel has warned that the United States may face its worst economic scenario by 2025, a situation that could spell disaster for the U.S. stock market.

According to the chief equity strategist at Stifel, Barry Bannister, the S&P 500 index is anticipated to end 2025 at around 5500 points, representing a potential drop of approximately 10% from current levels.

Amid the threat of tariffs, market sentiment has turned cautious, particularly as reports surfaced regarding Microsoft possibly retracting from two data centers, leaving investors wary of AI investment prospects

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As a result, the U.S. indices displayed mixed results on Monday, with only the Dow slightly rising by 0.08%. By the end of trading, the S&P 500 had dipped by 0.50%, while the Nasdaq fell by 1.21%.

As of the latest updates, the Wind index tracking America's seven tech giants saw a drop of 1.27%. Apple saw a minor increase of 0.67%, while Google fell 0.17%. Microsoft saw a decline by 1.01%, with Amazon dropping 1.77%. Tesla dipped 2.02%, and Meta Platforms fell by 2.26%. Nvidia saw a substantial drop of 3.24%, resulting in a staggering market value loss of approximately $101.6 billion in a single daySmart three-in-one stocks experienced numerous trading halts within the day before eventually closing with a 159.55% rise and a turnover rate of over 430%.

Additionally, Apple announced on Monday an investment plan signaling a major step forward, committing to $500 billion in investments within the U.S. over the next four years while promising to create an additional 20,000 jobsThis is Apple’s most significant commitment to the U.S. thus farAs part of this investment initiative, Apple revealed a partnership with Foxconn Technology Group to begin production of servers that support Apple Intelligence cloud computing components in Houston later this year, marking a partial return of manufacturing to the U.S.

Apple's CEO, Tim Cook, expressed confidence in the future of innovation in the United States, stating that he takes pride in this $500 billion commitment based on long-term investments.

Experts suggest that Apple's move is not only a response to presidential policies but also a strategic maneuver to protect its interests

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By increasing domestic investments and job creation, Apple aims to mitigate the potential impact of high tariffs while maintaining its profit margins and product pricing strategies.

Moreover, it is essential to note that Nvidia is set to release its Q4 2024 fiscal year earnings report after hours on February 26th, and analysts will be keenly observing how Nvidia responds to competitive pressures within the AI industry.

Most bank stocks experienced declines, with JPMorgan Chase, Citigroup, and Morgan Stanley observing drops exceeding 1%.

Michael Hartnett, Chief Strategist at Bank of America, forecasted a shift in global investment patterns, suggesting that investors might gravitate more towards markets in China, Germany, Japan, and South Korea as opposed to the U.S. stock market, especially as global PMIs begin to rebound.

Within the commodities market, spot gold prices rose by 0.61%, reaching a record high of $2952.725 per ounce; COMEX gold futures rose by 0.47%, settling at $2967.1 per ounce.

International oil prices also climbed, with ICE Brent crude increasing by 0.50% and NYMEX WTI crude rising by 0.72%. Meanwhile, various metals such as copper, nickel, aluminum, tin, and zinc saw declines on the LME market.

Market analysts have observed that the core inflation indicators in the U.S. remain elevated, with the re-inflation trading logic being a significant factor driving gold prices upwards

Additionally, ongoing concerns surrounding U.S. policy uncertainties continue to funnel investors into gold as a safe haven.

03 Chinese Stocks Dive

Recently, Chinese concept stocks, displaying a vigorous rise, have now come under pressure due to a shift in market sentiment and the implications of U.S. presidential policies.

On February 24th, following the market opening, the previously strong-performing Chinese stocks experienced a wave of correctionsBy the market's close, the Nasdaq Golden Dragon China index had decreased by 5.24%.

Notable declines in popular Chinese concept stocks included a 6.77% drop in the Wind Chinese Technology Leader Index, with companies like Pony.ai down over 20%, Tiger Brokers down more than 13%, and Global Data down over 11%. Additionally, other stocks, including Kingsoft Cloud, Alibaba, Bilibili, Tencent Music, JD.com, New Oriental, iQIYI, Netease, and others saw declines exceeding 4% to over 10%.

In recent discussions, advancements in Chinese technology, particularly related to platforms like DeepSeek, have garnered international attention, placing Chinese tech stocks at a pivotal point, perhaps witnessing a collective "revaluation."

Analysts speculate that, in the absence of any clear negative news, the primary cause for the adjustments in Chinese tech stocks may be attributed to prior gains being too substantial, prompting short-term investors to cash in on their profits.

Additionally, amidst the current AI boom, the congestion in transactions within the TMT (Technology, Media, and Telecommunications) sector has attracted scrutiny

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