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On Tuesday, July 16th, small-cap stocks on the U.S. stock market took the lead, with the Dow Jones Industrial Average (DJIA) and the S&P 500 index hitting new intraday highs, while the Nasdaq Composite experienced a dip before recovering most of its losses.

In the early U.S. stock market session, the Russell 2000 small-cap index once again led the major indices, surging by 2.3% at one point, marking a five-day winning streak to its highest level since January 2022; the technology-heavy Nasdaq Composite rose by nearly 0.6% before plunging by over 0.4%, falling below 18,400 points, but later recovered most of its losses; the S&P 500 index maintained its upward momentum, rising by more than 0.5% at one point, setting a new intraday high; the Dow Jones, a collection of blue-chip stocks, continued to rise, increasing by nearly 1.5%, breaking through 40,800 points, and hitting a new intraday high; the Nasdaq 100 rose by over 0.4% before falling by over 0.5%.

The "Tech Seven Sisters" saw mixed performances, with most recovering more than half of their losses after accelerating downward. Tesla rose by nearly 2.4% before falling by over 2.7%; Nvidia rose by over 0.4% before falling by over 3%; Meta rose by nearly 1.6% before falling by nearly 1.8%; Google's Class A shares rose by over 1.1% before falling by nearly 0.6%; Microsoft fell by nearly 1.5% at one point; Amazon rose by over 2% before giving up more than half of its gains; Apple rose by nearly 0.8% before falling by nearly 0.6%, and is now slightly positive.

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Chip stocks experienced divergent movements, with a quick recovery after a plunge. The Philadelphia Semiconductor Index fell by nearly 1.1%, and the industry ETF SOXX fell by nearly 1%. The Nvidia double leveraged ETF once fell by over 6%; Broadcom fell by over 2.7%, Micron Technology fell by more than 2.4%, while TSMC's U.S.-listed shares once rose by over 2.2%.

Most AI concept stocks maintained their downward trend before bottoming out and recovering. SoundHound.ai plunged by over 4%, while Snowflake once rose by over 3.2%.

The gains in Chinese concept stocks expanded. The China Internet Index ETF (KWEB) fell by nearly 1.2% before almost erasing all of its losses; the China Technology Index ETF (CQQQ) rose by nearly 1.7% at one point; the NASDAQ Golden Dragon China Index (HXC) turned positive, rising by over 0.5% at one point.

Among popular Chinese concept stocks, the new force in car manufacturing generally rose, with Zeekr rising by over 4%, NIO rising by over 1.6%, XPeng Motors rising by over 5.5%, and Li Auto rising by nearly 1%.

In terms of more volatile stocks, Trump Media & Technology Group (DJT) fell by over 11.5%.

The following content was updated before 21:50 Beijing time:

U.S. retail sales data for June exceeded expectations, once again boosting expectations for interest rate cuts, and U.S. stocks opened higher on Tuesday, coupled with the "Trump trade," leading to an increase in U.S. small-cap stocks.At the start of US stock trading on Tuesday, the Dow Jones Industrial Average rose by 0.5%, the S&P 500 Index increased by 0.3%, and the Nasdaq Composite gained 0.4%.

Trump Media & Technology Group's shares fell by about 10% at one point, following a previous trading day that saw a surge of over 31%.

Major technology stocks mostly rose, with Tesla increasing by about 1%, amid reports that Musk plans to invest $45 million per month to support Trump's election campaign. Meta, Amazon, and Google's parent company Alphabet all rose by more than 1%, while Apple and Nvidia saw minor gains.

Charles Schwab's shares dropped by nearly 8%, as the number of new brokerage accounts added in the second quarter fell short of expectations.

Morgan Stanley's shares fell by about 2%, despite the company's net revenue for the second quarter exceeding expectations, but its wealth management net revenue slightly missed forecasts. Bank of America's shares rose by about 1%, as the company's second-quarter transaction revenue, excluding DVA, surpassed expectations.

Chinese concept stocks showed mixed performance, with XPeng Motors rising by 3.6% and Bilibili increasing by 1.5%.

The Russell 2000 small-cap index climbed by 1.4%, with the iShares Russell 2000 ETF also rising by more than 1% in tandem.

Huatai Securities believes that if there is a "strong resonance" between the "Trump trade" and the "interest rate cut trade," it would be beneficial for small-cap US stocks, assets like Bitcoin and gold may gain favor, and the US Treasury yield curve will also steepen.