On February 24, the U.S. stock market opened positively across the board but soon experienced a sharp decline. As the trading day progressed, both the Nasdaq Composite and the S&P 500 indices saw fluctuations, indicating an overall variable market sentiment. Meanwhile, even more worrisome was the performance of Chinese stocks, which collectively fell significantly, with the Nasdaq Golden Dragon China Index widening its losses to a striking 5.24%. Concurrently, the Wind Nasdaq China Technology Leaders Index suffered a decline of over 6%.

Particularly notable were the plummeting shares of popular Chinese tech firms, as Alibaba and Bilibili both saw their stock prices drop by more than 9%. Both JD.com and Tencent Holdings didn’t fare much better, grappling with declines surpassing 7%. This sudden downturn is part of a broader trend that has raised concerns among investors regarding the stability of these companies in light of ongoing geopolitical tensions and regulatory scrutiny.

In the electric vehicle sector, Tesla's stock faced volatility as it initially rose sharply before succumbing to selling pressure. Reports emerged that the company was preparing a software update for its Chinese customers to roll out features comparable to the “Full Self-Driving” (FSD) option available in the U.S. The anticipated update intends to provide Tesla owners in China with enhanced driving assistance capabilities on urban roads. However, this news was not enough to maintain investor optimism, as Tesla's stock reversed its pre-market gains, showcasing the precarious nature of market sentiment.

In contrast, NVIDIA’s stock stood out as it managed a surprising increase despite the bearish trend in the market. Industry insiders revealed that there was high demand for NVIDIA's latest Blackwell architecture GPU chips, which has led the company to secure over 70% of TSMC's advanced CoWoS-L packaging capacity for this year. NVIDIA’s projection of a more than 20% quarter-over-quarter growth rate in shipments offered a welcome beacon of hope to investors when the broader market narrative appeared murky.

NVIDIA is scheduled to release its fourth-quarter earnings report for the fiscal year 2024 on February 26. Key points of interest for this report will include whether the company can maintain growth within its AI data center business, potential delays in the mass production of its Blackwell GB200 architecture products, market rhythm transitions for its GPU products, and the top management's strategic insights regarding the global commercialization of AI applications.

Gold prices introduced a roller-coaster aspect to the market as they surged to a new high, only to recoil shortly after. Earlier in the evening, spot gold briefly touched $2,955.80 per ounce, surpassing its previous record of $2,954.74. However, following this historical peak, gold saw a nosedive, and as the reports came in, prices stabilized at around $2,937 per ounce. This volatility echoes the complex interplay of various market influences and risks, positioning gold as both a safe haven and a speculative asset.

This year has already witnessed an impressive rally in gold prices, driven largely by high core inflation levels reported in the U.S. in January. Analysts identified the reinflation trade logic as a significant factor pushing gold prices upward. On top of that, the U.S. decision to impose reciprocal tariffs, which would target countries employing VAT systems and using alternative routes for tax avoidance, further amplifies the uncertainty surrounding U.S. economic policy, thereby channeling more risk-averse capital into gold.

Moreover, the recent pullback in the U.S. dollar index and Treasury yield has provided additional support for gold prices. Meanwhile, market expectations of a potential rebound in inflation driven by U.S. tariff policies, in conjunction with geopolitical uncertainties, has created a favorable environment for gold investments.

However, caution is warranted, as some industry insiders have raised alarms about the risks of a potential gold price drop in the near future. If prices ascend too rapidly, it could lead to a downturn in jewelry consumption or an influx in recycling, which might adversely affect the profitability of brand owners. Should gold prices exhibit fluctuations, consumers may decide to hold back on purchases, adding a further layer of complexity to market conditions.