<p>On February 9th, it was mostly cloudy with cool weather, and there was brief sunshine during the day. Last Friday, U.S. stocks saw investors buying on dips, and with the &#34;fear index&#34; VIX falling over 20%, U.S. stocks rebounded sharply, with the Dow Jones Industrial Average breaking records, rising 1,260 points to 50,169, closing with a historic breakthrough of the psychological barrier of 50,000, setting a record high of 50,115, up 1,206 points or 2.47%. The S&amp;P 500 rose 133 points or 1.97%, closing at 6,932; the Nasdaq rebounded significantly by 490 points or 2.18%, closing at 23,031. Nvidia and Tesla rose 7.9% and 3.5% respectively, while Goldman Sachs and JP Morgan both rose over 4%, and Caterpillar rose 7.1%.</p>
<h2>AI Experiences &#34;Infrastructure Construction Once in a Generation&#34;</h2>
<p>Nvidia CEO Jensen Huang stated that the market demand for AI products is extremely hot, given that the entire industry is undergoing &#34;infrastructure construction once in a generation,&#34; a process that will last for several years. Therefore, large-scale capital expenditure in the AI field is reasonable and necessary, with infrastructure expected to continue for another 7 to 8 years. However, concerns about AI companies significantly increasing capital expenditure linger, with Amazon predicting a sharp increase in capital expenditure to $200 billion this year, causing its stock price to drop as much as 10%, closing down 5.6%; Alphabet continued to fall by 2.5%.</p>
<p>The U.S. 10-year Treasury yield rose 2.59 basis points to 4.206%, then retreated; the 2-year Treasury yield rose 3.89 basis points to 3.4893%. The U.S. dollar index briefly fell 0.27% to 97.56, and the Japanese yen fell 0.08%. However, market risk aversion slightly eased, with Bitcoin dropping to $60,033 before rebounding as much as 19% to $71,462, currently fluctuating around the $70,000 level. Gold prices reversed the decline from last Thursday and have now rebounded back above the $5,000 level.</p>
<h2>Hang Seng Index Stabilizes at 27,000 or Challenges 27,400</h2>
<p>Hong Kong stocks underwent significant adjustments in the first week of February, with the market opening lower last Monday, leaving a gap down of 284 points from 27,100 to 27,384. Although there was a rebound in the following three trading days, by Friday, the Hang Seng Index opened lower again by 500 points and fell to 26,295, near a one-month low, closing down 325 points at 26,559, a weekly decline of 828 points or 3.02%. Last Friday, the Hang Seng Index rebounded after falling close to the 50-day and 100-day lines, and the short-selling amount increased for two consecutive trading days to 20%, indicating a potential short-covering rally. In fact, last Thursday and Friday, although the market opened lower, it managed to rebound from the lows and closed with bullish candles, reflecting that short-covering has begun. With U.S. stocks rising across the board on Friday night, the Dow Jones reached a new high, driving significant increases in night futures and ADRs back above the 27,000 mark. Additionally, with the conclusion of the Japanese elections, the ruling Liberal Democratic Party won a significant victory, securing over two-thirds of the parliamentary seats, leading to a surge in Japanese stocks by over 5%; this drove the black futures further up to the 27,100 level this morning, and the market is expected to open significantly higher today
If the market opens high and can stabilize above 27,000, it is expected to further fill the gap left by last Monday's decline and challenge 27,400. However, if the gap is not fully filled, or if it fails to stabilize at the bottom of the gap after filling it, specifically around the 10-day moving average of about 27,100, it indicates that the market is still constrained by a bearish island top pattern, and adjustments may continue after an oversold rebound. Conversely, if the gap is successfully filled and stabilizes above the gap at 27,400, the threat of the island top will be lifted, and the market may have the opportunity to challenge higher levels, even reaching new highs.</p>
<p>However, starting next Tuesday, there will be a three-day Spring Festival holiday, and next Monday will only have a half trading day. Additionally, northbound capital will be suspended from the 16th to the 20th. Without the support of northbound capital, it seems challenging to initiate another upward wave to break through the 28,000 level. For the remainder of February, Hong Kong stocks may tend to move within a range.</p>
<p><strong>Gigi Leung</strong></p>

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<p>Hong Kong stocks underwent a significant adjustment in the first week of February, with the Hang Seng Index opening lower and hitting a nearly one-month low, closing down by 325 points, a weekly drop of 828 points or 3.02%. U.S. stocks rebounded as investors took advantage of lower prices, with the Dow Jones Industrial Average historically breaking through 50,000 points, reaching a record high. Technology stocks such as Nvidia and Tesla performed strongly, but concerns about capital expenditures in AI companies remain. Bitcoin rebounded to around $70,000, and gold prices rose to the $5,000 level</p>

- On February 9, U.S. stocks rebounded significantly, with the Dow Jones breaking the 50,000 psychological mark, closing at a record high of 50,115.  
- Despite concerns over increased capital expenditures in the AI sector, NVIDIA's CEO emphasized the ongoing demand for AI infrastructure, predicting substantial investments over the next several years.  
- The Hang Seng Index experienced volatility but found support around 27,000, showing potential for recovery if it stabilizes above this level despite the upcoming Lunar New Year holiday affecting trading.

Hong Kong stocks rebound, attempting to fill the gap from last Monday's decline | Gu Tianhou