US Stocks Fall, Baidu and Xiaomi Miss, Unitree Lists Wednesday
US stocks fell for a third consecutive session on Tuesday, with the Nasdaq Composite sliding more than 1% as technology and chip stocks led the decline. SK Hynix and Seagate each dropped over 9%, while AI and optical communication companies such as CoreWeave and Coherent lost more than 10%. The downturn was attributed to worries about a potential bond market selloff, although Treasury yields gave back earlier gains, with the 30-year yield retreating after touching a fresh high since 2007.
In geopolitical developments, U.S. President Donald Trump announced that he would not hold talks with Iran now or in the future, and he displayed a map labeling the strategic Strait of Hormuz as 'new U.S. territory.' Iran immediately denounced the move as delusional and reiterated that the strait would remain closed until the U.S. meets the conditions of a prior agreement. Adding to tensions, the United Arab Emirates reported detecting two missiles fired from Iran and has suspended trade with Tehran.
China is broadening the scope of housing provident fund withdrawals and usage, a policy measure aimed at supporting home purchases and stimulating consumption. The expansion includes more flexible rules for using the funds for rental payments, home renovations, and other purposes, according to official announcements.
Baidu reported second-quarter revenue of 31.3 billion yuan, down 4.2% year-on-year and slightly below market consensus. Nevertheless, the company highlighted that its AI business now accounts for over half of total revenue, with GPU cloud revenue surging 283%. The stock fell nearly 13% in after-hours trading as investors weighed the broader growth slowdown.
Xiaomi posted second-quarter revenue of 108.9 billion yuan, a 6.1% year-on-year decline, while net profit of 9.46 billion yuan exceeded forecasts. Smartphone shipments dropped 26.5% due to rising memory prices, but robust growth in IoT and internet services partially offset the impact, preserving profitability.
GigaDevice (Zhaoyi Innovation) disclosed that first-half net profit skyrocketed 1,091.5% year-on-year, with revenue jumping 179%, reflecting strong demand for memory and microcontroller products. TFC Communication also reported a 33.92% increase in first-half net profit, driven by a 77% surge in passive optical components, which benefited from the ongoing AI-driven expansion of data centers.
In the A-share market, Frequency Precision Laser, the year's most expensive new stock, soared 595% on its debut, with a single lot yielding up to 550,000 yuan, setting a record in A-share history. OpenAI's next-generation model, GPT-6, saw its codename leaked again, leading to speculation of an official announcement this Thursday. In robotics, Unitree Technology is scheduled to list on the STAR Market on Wednesday.