D Prime US Market Update
US stocks closed higher on Wednesday after President Donald Trump withdrew proposed new tariffs on Europe, saying a framework agreement had been reached covering Greenland and the broader Arctic region.
In a post on Truth Social, Trump said:
“Based on my productive discussions with NATO Secretary General Mark Rutte, we have reached a framework for an agreement on the future of Greenland and the entire Arctic region. Based on this understanding, I will not implement the tariffs that were scheduled to take effect on February 1.”
The so-called “Sell America” trade that rattled financial markets on Tuesday reversed sharply on Wednesday. Following Trump’s decision to pause tariffs, 10-year US Treasury prices rose, yields declined, and the US dollar strengthened against major currencies.
As investors rotated back into favored growth stocks after earlier safe-haven positioning, technology shares led the rebound, with NVIDIA and AMD among the top performers.
Trump also said during his speech in Davos that he would push Congress to implement a 10% cap on credit card interest rates. While the proposal faces uncertainty due to limited legislative support, the comments helped lift bank stocks, with Citigroup and Capital One each rising around 1%.
Despite Trump stating he would not pursue military action over Greenland, geopolitical tensions remain elevated, with tariff risks still lingering in the background.
US Stocks Highlights
D Prime US Stock Watch:
Most major tech stocks advanced. NVIDIA rose 2.95%, Google gained 1.98%, Meta added 1.46%, Tesla climbed 2.91%, Micron surged 6.61%, AMD jumped 7.11%, and Intel soared 11.72%.
Meanwhile, Microsoft fell 2.29%, Broadcom dropped 1.14%, Oracle declined 3.36%, and Netflix slipped 2.18%.
Chinese ADRs mostly moved higher. The Nasdaq Golden Dragon China Index rose 2.21%. Alibaba gained 3.87%, JD.com rose 2.43%, Pinduoduo added 1.40%, NIO climbed 2.41%, XPeng gained 1.70%, Li Auto rose 2.48%, Bilibili surged 5.65%, and Baidu jumped 8.17%.
Meanwhile, NetEase fell 4.07%, Tencent Music slipped 0.80%, and Pony.ai rose 2.55%.
D Prime US Stocks Snapshot
- Dow Jones: +588.64 points (+1.21%) to 49,077.23
- Nasdaq: +270.50 points (+1.18%) to 23,224.82
- S&P 500: +78.76 points (+1.16%) to 6,875.62
Hong Kong Market
Hong Kong stocks opened higher but turned mixed by midday. Tech stocks were mixed, with Baidu up over 4% and Bilibili up more than 1%, while Xiaomi and NetEase fell over 1%.
Energy stocks strengthened, led by PetroChina up over 3%. Gold stocks declined broadly, with Zijin Mining falling over 6%. Lithium battery stocks underperformed, with CATL down more than 4%. Longcheer Technology rose over 4% on its first trading day.
D Prime Insight:
Gold stocks retreated as precious metals pulled back in early Asian trading on January 22, with gold slipping back below the $4,800/oz level. Goldman Sachs raised its December 2026 gold price forecast to $5,400/oz, citing continued buying by central banks and ETFs.
Lithium battery stocks lagged after CLSA warned that CATL faces multiple headwinds in 2026, including slowing EV sales in China, rising lithium prices, and reduced export VAT rebates. CLSA noted CATL’s A/H shares trade at 17x/22x 2026 P/E, reflecting much of the downside risk, while its forecast 31% EPS CAGR from 2025–2027 still offers an attractive risk-reward profile.
D Prime Hong Kong Market Snapshot
- Hang Seng Index: -0.10% to 26,559.01
- Hang Seng Tech Index: -0.40% to 5,723.52
- China Enterprises Index: -0.34% to 9,092.36
A50
Mainland China equities weakened in morning trading. By midday, the Shanghai Composite fell 0.15%, Shenzhen Component declined 0.17%, and ChiNext dropped 0.40%, while the Beijing Stock Exchange 50 rose 0.43%. Total turnover reached RMB 1.79 trillion, higher than the previous session, with over 3,200 stocks advancing.
D Prime Insight:
Gainers were led by natural gas, commercial aerospace, defense equipment, solar equipment, steel, coal, lab-grown diamonds, and chemicals, while precious metals, lithography equipment, semiconductors, insurance, and battery stocks lagged.
D Prime A-Share Market Snapshot
- Shanghai Composite: -0.15% to 4,110.86
- Shenzhen Component: -0.17% to 14,230.97
- ChiNext: -0.40% to 3,282.48
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