To The Moon

U.S. Stocks Steady Ahead of Nvidia Earnings; Chinese Markets Rebound as Hang Seng Tech Index Breaks 6,000

🇺🇸 S&P 500 Index: +0.02% 📈

🇺🇸 Nasdaq Index: +0.26% 📈

🇪🇺 STOXX 600 Index: +0.99% 📈

🇯🇵 Nikkei 225 Index: -0.25% 📉

🇭🇰 Hang Seng Index: +3.27% 📈

🇨🇳 CSI 300 Index: +0.87% 📈

🇸🇬 Straits Times Index: -0.20% 📉

U.S. stocks were mostly stable, with the S&P 500 nearly unchanged and the Nasdaq Composite up 0.3%, as investors eagerly awaited Nvidia's earnings. The market saw increased volatility in afternoon trading as it digested the European Union's latest tariff announcements.

In Asia, markets surged, led by Hong Kong's Hang Seng Index (+3.3%) and China's CSI 300 Index (+0.9%), as investor optimism grew over government stimulus measures to boost confidence. Tech stocks rebounded strongly following last week's profit-taking. 

Upcoming Economic Events

Thursday: U.S. reports Durable Goods Orders (MoM), Preliminary GDP Growth Rate (QoQ), and Unemployment Claims; the Eurozone updates its Economic Sentiment Index.

Friday: Japan releases Retail Sales (YoY) and Industrial Production (Preliminary MoM); the U.S. publishes the Core PCE Price Index (MoM), a key inflation metric for the Federal Reserve.

Key Market Developments

1. Nvidia's $NVIDIA Corp(NVDA)$ earnings exceeded expectations, with revenue up 78% YoY to $39 billion (forecast: $38 billion). Earnings per share hit $0.89, slightly above estimates, while gross margins reached a record 73%. Full-year revenue surged 114%, fueled by strong data center sales, with Blackwell chips dominating large cloud service providers, accounting for 50% of data center revenue.

Blackwell chips

2. Trump proposed a 25% "reciprocal" tariff on European cars and other goods. White House officials confirmed the March 4 deadline for tariffs on Mexican and Canadian goods remains in place, pending Trump's review. However, he later suggested in a Cabinet meeting that the tariffs could be delayed until April 2.

Trump tariff

3. Hong Kong's new budget includes measures to strengthen its financial hub status, focusing on wealth management, family offices, IPOs, and renminbi business. The Hong Kong Stock Exchange is developing a "Tech Enterprise Channel" to attract specialized tech and biotech firms, particularly those listed in mainland China.

4. China plans to inject at least 400 billion yuan into major banks, including Agricultural Bank of China and Bank of Communications. Their shares rose 2% after the announcement. The move is part of a broader economic stimulus package aimed at reviving credit demand amid weak lending, interest rate cuts, and a lingering real estate crisis. The plan is expected to launch in June.

Agricultural Bank of China

5. Taiwan cut its 2025 GDP forecast to 3.14%, citing risks from potential U.S. tariffs and budget cuts. The island, home to key tech firms like TSMC $Taiwan Semiconductor Manufacturing(TSM)$ , Apple $Apple(AAPL)$ , and Nvidia $NVIDIA Corp(NVDA)$ , faces uncertainty as Trump considers a 25% tariff on semiconductor imports. Taiwan and the U.S. are engaging in diplomatic talks to protect American chip investments.

Taiwan

Market Outlook

Gold prices declined as investors awaited key U.S. inflation data and updates on Trump's tariff policies. In addition, Trump ordered an investigation into potential tariffs on copper imports, aiming to boost domestic production of this critical metal used in electric vehicles, military hardware, power grids, and consumer goods.

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