--- title: "The rebound in Hong Kong stocks continues, and extremely short-term overselling may need to be shaken off｜Gu Tianhou" type: "News" locale: "en" url: "https://longbridge.com/en/news/291863297.md" description: "The rebound of U.S. tech stocks has driven major indices to new highs, with the Dow Jones Industrial Average breaking 53,000 points for the first time. Microsoft announced layoffs of 4,800 employees, causing its stock price to fall; SpaceX was included in the Nasdaq 100 but saw its stock price decline; Broadcom rose 3.7% due to its partnership with Apple. Morgan Stanley pointed out that funds are shifting from chip stocks to AI cloud companies like Microsoft, Amazon, and Meta. Bitcoin rebounded to $63,935 influenced by Trump's remarks" datetime: "2026-07-07T01:52:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291863297.md) - [en](https://longbridge.com/en/news/291863297.md) - [zh-HK](https://longbridge.com/zh-HK/news/291863297.md) --- # The rebound in Hong Kong stocks continues, and extremely short-term overselling may need to be shaken off｜Gu Tianhou On July 7, it was generally cloudy with occasional showers and strong thunderstorms, with heavy rain at times. After the holiday on Monday, U.S. stocks resumed trading, with a rebound in technology stocks driving the market higher. The Dow Jones Industrial Average (DJIA) set new intraday and closing historical highs, crossing the 53,000-point level for the first time at the close. Although the DJIA opened lower and fell by 251 points at one point, it closed up 155 points or 0.29% at 53,055 points; the S&P 500 rebounded by 54 points or 0.72% to 7,537 points; and the Nasdaq rose by 288 points or 1.12% to 26,121 points. ## Analysts Expect Chip Stocks to Be Replaced Among the heavyweight stocks, SpaceX was included in the Nasdaq 100 index starting July 7, but its stock price turned from a rise to a 1% decline at the close on Monday; Tesla surged 6.7%, and Nvidia rose 0.4%. Bloomberg reported that Broadcom expanded its cooperation with Apple until 2031, with Broadcom's stock price rising by 3.7%; Microsoft retraced by 1%, as the company plans to lay off 4,800 employees, accounting for 2.1% of its total workforce; the Xbox gaming division will see a 20% reduction in its workforce. Boeing rose 3.6%, making it the strongest performer among the DJIA components; pharmaceutical stock Merck fell 2.2%, making it the biggest decliner in the DJIA. The Philadelphia Semiconductor Index has fallen nearly 14% from last month's high, and Morgan Stanley strategist Wilson expects U.S. stocks to remain under pressure in the short term, indicating that investors are selling the strongest-performing chip stocks from the first half of the year and shifting to lagging hyperscaler stocks, mentioning Microsoft, Amazon, and Meta as more attractive in AI-related stocks due to strong performance in their core businesses. HSBC's Chief Multi-Asset Strategist Max Kettner is optimistic about hyperscaler stocks, which were oversold in May and June, believing they will rebound in July and August, as these companies invest hundreds of billions of dollars in AI infrastructure and still manage to make profits. The U.S. 10-year Treasury yield fell by 2.98 basis points to 4.4534%. The U.S. dollar index rose by 0.29% to 101.15, while Goldman Sachs lowered its forecast for the Japanese yen, which fell by 0.68% to 162.43 per dollar. U.S. President Trump has also touted his support for cryptocurrencies, claiming to be a loyal supporter of cryptocurrencies, with Bitcoin, the "big brother" of cryptocurrencies, rising by 4.3% to $63,935 at one point. ## First Challenge the 20-Day Line at 23,866 Points Hong Kong stocks continued the rebound from last week, with the Hang Seng Index opening 54 points higher before briefly turning down 120 points to a low of 23,229 points, just managing to hold above the 10-day line at 23,219 points before rebounding again. During the session, it rose by 336 points to a high of 23,686 points, ultimately closing up 266 points, marking three consecutive days of gains, finishing at 23,616 points, with net inflows from northbound trading exceeding HKD 10 billion. As funds are reallocated in the second half of the year, money has flowed from hot AI and storage stocks into traditional technology platform stocks and pharmaceutical stocks, driving the Hang Seng Index higher. The Hong Kong stock market has also found support at the critical level of 22,500 points, along with an oversold rebound, initiating a recovery. From the high of 26,844 points in May to the low of 22,518 points in June, the Hong Kong stock market has cumulatively fallen over 4,000 points. If we calculate a 0.382 rebound based on the golden ratio, the target for this rebound is 24,170 points; if we calculate a 0.5 rebound, it could reach 24,681 points, which coincides with the 30-day line at 24,392 points and the 20-month line at 24,309 points, falling between these two resistance levels for the rebound It is expected that Hong Kong stocks will first challenge the 20-day moving average, currently at 23,866 points. If it stabilizes above this level, it is likely to challenge the psychological barrier of 24,000 points and the golden ratio of 0.382, which is approximately at the 24,200 points level. For Hong Kong stocks to completely reverse the downtrend, a platform needs to be established between 23,800 and 24,200 points, and then rise above the 20-month moving average of 24,300 and gradually recover the 50-day moving average to return above the 25,000 points level, in order to initiate another wave of increase. 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