As of press time,$Dow Jones Industrial Average (.DJI.US)$Decreased by 0.18%, $Nasdaq Composite Index (.IXIC.US)$ Decreased by 0.35%, $S&P 500 Index (.SPX.US)$ Decreased by 0.26%.

Chinese concept stocks in the US generally rose in early Wednesday morning, with the Nasdaq Golden Dragon Index up over 4%. S3 Partners released a research report stating that the significant rise in the Chinese stock market driven by stimulus policies has led to short sellers of Chinese concept stocks suffering approximately $6.9 billion in market cap losses.

Supported by a series of easing measures, China's benchmark CSI 300 Index has risen over 27% from its low point on September 13, while the Nasdaq Golden Dragon Index has soared over 36% during this period.

According to analysts, this has wiped out approximately $3.7 billion in profits for shortsellers so far this year, leading to current unrealized losses of about $3.2 billion. Data shows that the most painful stocks for shortsellers are Alibaba and JD.com.

Escalating tensions in the Middle East have dampened risk appetite, dampening investors' enthusiasm for new trades in October. The Chicago Board Options Exchange Volatility Index (VIX), known as Wall Street's fear gauge, remains above 19, highlighting the continued tense market sentiment.

On the evening of October 1 local time, the Iranian Islamic Revolutionary Guard Corps issued a statement stating that it had launched dozens of ballistic missiles at important military and security targets inside Israel, in retaliation for a series of actions by Israel.

The Israeli Defense Forces issued a statement the same day, stating that Iran had launched a large-scale missile attack against Israel from its territory, firing over 180 ballistic missiles, most of which were intercepted.

Iranian officials stated on Wednesday that unless there are further provocations, their missile strikes against Israel have ended. However, Israel and the United States have pledged to retaliate against Tehran, leading to heightened concerns about a larger-scale war and tense market sentiment.

As Israel begins ground operations in Lebanon and tensions escalate with the Iran-backed militant group Hezbollah, investors are preparing for more uncertainty.

Affected by the escalating tensions in the Middle East, the price of medium-quality crude oil in West Texas rose by 3% on Wednesday morning, continuing the uptrend following the Middle East news on Tuesday.

Capital Economics institutions pointed out, 'Iran accounts for about 4% of global oil production, but an important consideration is whether Saudi Arabia would increase output if Iran's supply is disrupted.'

In addition, the market is also monitoring a major strike by dockworkers on the U.S. East Coast and in the Gulf of Mexico.

Following the breakdown of negotiations for a new labor contract, dockworkers along the U.S. East Coast and the Gulf of Mexico began a strike on October 1st local time. This marks the first large-scale strike by these dockworkers in nearly 50 years, leading to disruptions in approximately half of the United States' maritime transportation.

The strike has paralyzed the normal operations of dozens of ports from Maine to Texas, hindering the transportation of various goods from food to automobiles.

The total throughput of the affected ports accounts for half of the total US trade volume, and the strike will disrupt container goods and automobile transportation. Energy supply and bulk goods such as city garbage and road salt will not be affected. The strike will not impact military cargo transport or cruise traffic.

The International Longshoremen's Association (ILA), representing 0.045 million American port workers, has been negotiating with the United States Maritime Alliance (USMX), representing the employer group, in an attempt to sign a new six-year contract by the final deadline at midnight on September 30, but ultimately was unsuccessful.

Analysts stated that the ongoing strikes by dockworkers at major ports along the U.S. East Coast and the Gulf of Mexico are expected to cost the U.S. economy billions of dollars each day, threaten employment, and trigger inflation. This strike may also cause political unrest in the weeks leading up to the U.S. presidential election.

According to JPMorgan's forecast, this strike will result in daily economic losses of 3.8 billion to 4.5 billion U.S. dollars for the United States.

Ryan Detrick, Chief Market Strategist at the Carson Group, stated, "Early this morning, we were concerned about the possible significant and prolonged impact of the dockworkers' strike on the market and potential economic growth, but soon those concerns shifted to the situation in the Middle East."

"Now the major concern is whether this conflict will escalate into a larger-scale war that could spiral into the entire region, which could certainly be a major unexpected event in October."

On Wednesday's economic data front, the U.S. ADP private sector added 0.143 million jobs in September, higher than the expected 0.125 million and the previous 0.099 million.

Analysts stated that the U.S. ADP data for September shows that the number of new jobs added by U.S. companies last month exceeded expectations, which contradicts other indicators showing a cooling in the labor market. The growth in the number of new jobs added suggests a rebound in the job market after five consecutive months of slowing growth, especially following last month's lowest level since March 2023. However, the three-month average increase has dropped to 119,000, one of the lowest levels since 2020.

On Friday, the U.S. will release the September non-farm payroll report, and the market will use this to determine the extent of future interest rate cuts by the Federal Reserve.

Focus stocks

Most growth tech stocks fell, with tesla plummeting nearly 6%, nvidia, apple, google, and meta platforms dropping almost 1%.

China concept stocks continue to rise. $NASDAQ Golden Dragon China (.HXC.US)$ Up more than 4%, bilibili soared over 11%, netease rose more than 5%, ke holdings surged nearly 5%, jd.com rose more than 4%, alibaba and pdd holdings rose more than 2%.

China assets etf strengthened,$Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$up nearly 17%,$Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU.US)$N/A.$Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$Up more than 11%.

$Tesla (TSLA.US)$ Dropping nearly 6%, the company's delivery volume in the third quarter was 462,890, below market expectations.

$Alibaba (BABA.US)$ Once up nearly 3%, now up over 2%, the company repurchased $4.1 billion worth of stocks in the third quarter.

$Nike (NKE.US)$ Falling more than 7%, the company's Q2 revenue is difficult to improve, Nike withdraws annual performance guidance.

Editor / jayden