Major China-US Data Impacting the Market

Market Summary for Last Week

　　US August non-farm data showed mixed results. Fed Governor Waller indicated that if future data worsens, larger rate cuts could be considered. Negative data influenced market sentiment, causing a significant drop in US stocks on Friday. The S&P 500 fell by 1.7%, and the Nasdaq dropped by 2.6%. The S&P 500 and Russell small-cap indexes declined for four consecutive days, with the S&P 500 recording its worst weekly performance since March last year, and the Nasdaq's weekly decline reaching 5.8%, the worst since 2022.

　　Source: Moneybar

　　The S&P 500 technology sector fell more than 7% for the week, leading the market decline, followed by the energy sector. On Friday, the chip index dropped 4.5%, with a weekly loss of over 12%, the worst since 2020. Broadcom fell over 10% on Friday, marking its largest single-day decline since March 2020; Nvidia dropped more than 4%, with a weekly loss of nearly 14%, the worst since September 2022; Tesla declined by 8.5%. The China concept stock index fell by 0.8%.

　　US employment data heightened pessimistic economic expectations, with the two-year US Treasury yield falling nearly 16 basis points, dipping below 3.60% to a two-year low, and a weekly drop of 25 basis points. The 10-year Treasury yield fell 9 basis points to 3.64%, the lowest in over a year, with a weekly decline of about 20 basis points, ending the inversion with short-term bond yields.

　　The US dollar index fell initially before rising, with a weekly drop of 0.5%. The offshore yuan remained at a 16-month high, with a slight weekly increase.

　　Spot gold fell 1% to below $2500 at one point, with a slight weekly decline.

　　In the Asian trading session, all three major A-share indexes ended lower, with the ChiNext Index down 1.7%. Brokerage stocks led gains throughout the day, government bond futures rose broadly, and black commodities performed weakly.

This Week‘s Focus

　　Key events this week include the release of China’s August economic data, the 11th session of the 14th National People's Congress Standing Committee, new product launches by Apple and Huawei on the same day, the first presidential debate between Harris and Trump, and the European Central Bank's monetary policy meeting.

　　On Monday (September 9), the National Bureau of Statistics will release Chinas August CPI and PPI data. Last month's data showed China's July CPI increased 0.5% year-on-year, with the month-on-month growth rate turning positive; PPI fell 0.8% year-on-year, remaining flat month-on-month; core CPI turned from a 0.1% decline last month to a 0.3% increase.

　　On Tuesday (September 10) at 1:00 AM, Apple will hold a new product launch event at its headquarters in Cupertino, California, themed “Its glowtime,” with expectations for the release of the new iPhone 16 series and Apple Watch.

　　Source: Yicai

　　On the same day (September 10) at 2:30 PM, Huawei will hold its brand event and HarmonyOS Smart Mobility product launch, introducing new intelligent mobility solutions and related products based on the HarmonyOS system. The event may include the launch of Huawei‘s long-anticipated new electric vehicle and the world’s first mass-produced foldable smartphone, the Huawei Mate XT Master Edition.

　　On Wednesday (September 11) at 9:00 AM, the second presidential debate between the two major candidates will be held in Philadelphia, expected to last 90 minutes. This debate will be the first direct confrontation between Harris and Trump, with Philadelphia, located in Pennsylvania, being the most populous swing state.