Stock Daily
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Weekly intelligence

Aug 3, 2026 — Aug 9, 2026

Growth Shares Lead a Broad U.S.-China Market Recovery

Chinese and U.S. equities advanced through a volatile week, led by growth and smaller companies, while lower long-term yields improved the valuation backdrop.

01

The Week in Context

  1. Chinese equities shifted from an early broad decline to a broad recovery, with growth and smaller companies repeatedly leading as risk appetite spread into major indexes.
  2. U.S. stocks rallied, diverged and pulled back midweek, then strengthened again, allowing all three major indexes to finish the week higher while technology showed greater sensitivity.
  3. U.S. long-term yields fluctuated during the week but ended below their early-week level, easing discount-rate pressure and supporting growth valuations in both markets.
  4. Leadership in China broadened from computing infrastructure, communication services, and information technology into health care, while demand for high-beta growth industries remained active.
  5. Soft service activity and industrial price signals showed that better equity sentiment still needs fundamental support, leaving cyclical industries and pricing power under pressure.
02

Next-week Scenarios

Base case

If risk appetite remains stable and U.S. long-term yields do not rebound materially, Chinese and U.S. equities may retain a firm but volatile tone, with growth and smaller companies staying relatively active.

Upside case

If long-term yields decline further and market breadth keeps expanding, valuation pressure could ease again and technology-led strength could spread into more industries.

Downside case

If long-term yields rise again, or weak industrial prices and service activity reduce growth expectations, expensive growth and cyclical shares could come under pressure first.

03

Key Events Next Week