Tech-Heavy Index Slides Over 1% as AI Hardware Stocks Retreat, Rare Earths Rally

AI hardware stocks experienced a collective adjustment, influenced by a significant overnight decline in NVIDIA shares, which plunged 5.7% intraday, marking their largest single-day drop in three months. Despite NVIDIA's latest quarterly revenue surging 73% year-over-year and first-quarter guidance exceeding average market expectations, the company's outlook failed to alleviate investor concerns regarding the sustainability of AI-related expenditures.

On February 27th, A-shares fluctuated and trended downwards, with the three major indices collectively declining. The tech-heavy ChiNext Index fell over 1%. AI hardware stocks adjusted, with Co-Packaged Optics (CPO) and Printed Circuit Board (PCB) sectors leading the losses, primarily affected by the overnight drop in NVIDIA. In contrast, non-ferrous metals and rare earths sectors saw gains, continuing their upward momentum driven by price increases.

Hong Kong markets rebounded, with both the Hang Seng Index and the Hang Seng Tech Index moving higher. Most technology and internet stocks advanced, while the biotechnology index showed strong gains. WUXI BIO rose over 4%. In the bond market, treasury futures mostly increased. In commodities, domestic commodity futures experienced broad declines, with aluminum oxide dropping over 3%, and coking coal, coke, and others trending lower.

Core Market Movements:

A-Shares: As of the latest update, the Shanghai Composite Index rose 0.13%, the Shenzhen Component Index fell 0.36%, and the ChiNext Index declined 1.13%.

Hong Kong Markets: As of the latest update, the Hang Seng Index gained 0.57%, and the Hang Seng Tech Index increased 0.51%.

Bond Market: Treasury futures fluctuated with an upward bias. As of the latest update, the 30-year treasury futures contract rose 0.02%, the 10-year contract was flat, the 5-year contract gained 0.01%, and the 2-year contract increased 0.01%.

Commodities: Domestic commodity futures saw widespread declines. As of the latest update, aluminum oxide fell over 3%. Coking coal, lithium carbonate, and polysilicon dropped over 2%. Fuel oil, industrial silicon, coke, nickel, stainless steel, pulp, and caustic soda declined over 1%. Silver, rubber, aluminum, and hot-rolled coil also fell.

09:52 The rare earth permanent magnet concept strengthened. Baotou Steel touched the daily limit up. China Rare Earths, Dadi Xiong, Shenghe Resources, Northern Rare Earth, Galaxy Magnets, and Tianhe Magnets followed with gains.

On the news front, the price of praseodymium-neodymium metal increased by 40,000 yuan per tonne to 1.08 million yuan per tonne. The price of praseodymium-neodymium oxide rose by 5,000 yuan per tonne to 882,500 yuan per tonne.

09:36 Space photovoltaic concept stocks rebounded in early trading. Junda Technology hit the daily limit up. Jiawei New Energy, Juhe Materials, EGing Photovoltaic, East Rising, and Deke Technology followed with increases.

Fundamentally, GF Securities stated that with AI giants fiercely competing, the consensus for deploying "computing power in space" is forming. Driven by this consensus, space photovoltaics, as a primary energy supply form, is expected to benefit significantly. It is projected that this could potentially bring cumulative market space in the hundreds of billions to photovoltaic equipment.

09:29 Computing power concept stocks adjusted at the market open. Tefa Information approached the daily limit down. Changfei Fiber, Tianfu Communication, Guangk Technology, Changxin Bochuang, Luoboteco, Dekeli, and others opened lower.

09:26 The Shanghai Composite Index opened 0.43% lower. The ChiNext Index fell 1.23%. The optical module, glass fiber, and optical communication sectors were among the top decliners.

09:21 The Hang Seng Index opened up 0.25%. The Hang Seng Tech Index opened 0.15% higher. WUXI BIO rose nearly 5%, leading the blue-chip gains. Baidu Group fell over 1%.

09:01 At the commodity futures market open, the main tin contract rose over 2%. Aluminum oxide fell over 3%. PVC, lithium carbonate, palladium, silver, and plastics declined over 2%.