Chinese Stock Market Potentially Stops Decline on Thursday

Stock Market Roundup: Crude Oil Surges, S&P 500 Hits Record High, China Stock Market Slumps

In today's market news, crude oil prices surged, and the S&P 500 reached a new record high, while the China stock market faced a two-day losing streak.

West Texas Intermediate crude for October delivery climbed $0.83 or 1.33 percent, closing at $64.08 per barrel, following a report that U.S. crude and gasoline inventories fell more than expected last week.

Meanwhile, the S&P 500 ended the day with gains, reaching a record high, despite the China stock market's downward trend. The Shanghai Composite Index (SCI) retreated more than 80 points or 2.1 percent, finishing the day sharply lower. The SCI is currently just above the 3,800-point plateau.

The lead from Wall Street is upbeat, with the major averages opening mixed but moving largely to the upside throughout the day and ending with modest gains. However, traders were reluctant to make big moves ahead of Friday's Commerce Department report on personal income and spending for July, which includes the Federal Reserve's preferred readings on consumer price inflation.

In the technology sector, NVIDIA reported earnings that increased from the same period last year and beat estimates. However, the Chinese AI chip company Cambricon experienced a significant loss on Tuesday, dropping 13% at the stock market, primarily due to a Bloomberg report that Chinese financial regulators planned measures to cool the market, including easing some short-selling restrictions, which triggered investor sell-offs especially in tech stocks.

The European markets were mixed, and the U.S. bourses were slightly higher. CME Group's FedWatch Tool is currently indicating an 87.2 percent chance the Fed will lower rates by a quarter point at its next monetary policy meeting in September.

The global forecast for Asian markets suggests mild upside, with strength likely from the oil and technology sectors. The SCI is due for support on Thursday.

Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Merchants Bank, Bank of Communications, China Life Insurance, Jiangxi Copper, Aluminum Corp of China (Chalco), Yankuang Energy, PetroChina, China Petroleum and Chemical (Sinopec), Huaneng Power, China Shenhua Energy, Gemdale, Poly Developments, and China Vanke experienced significant losses on Wednesday.