U.S. stocks fell sharply on Wednesday, pressured by escalating tensions in the Middle East, which drove a significant rise in oil prices. Persistent inflation concerns reduced expectations for interest rate cuts by the Federal Reserve, weighing on market sentiment. All three major U.S. indices closed lower. The U.S. dollar strengthened, while the yield on the 10-year Treasury note climbed to around 4.26%. Gold prices declined noticeably, whereas oil prices surged.

In Hong Kong, the three major indices opened lower today. The Hang Seng Index dropped 1.82% at the open to 25,550.56 points, the Hang Seng Tech Index fell 2.1%, and the Hang Seng China Enterprises Index declined 1.62%.

Sector performance was mixed. Technology and internet stocks broadly declined, with Tencent and Bilibili down more than 4%, Kuaishou and Alibaba falling over 3%, and NetEase and JD.com dropping more than 2%. In contrast, oil and gas equipment and services stocks opened higher, led by Shandong Molong Petroleum Machinery Company Limited, which surged over 14%. Some AI application stocks pulled back, with Minimax down more than 5%. Semiconductor stocks were generally lower, with TianShu ZhiXin declining over 4%. Gold-related stocks also opened weaker, as Zijin Mining International fell more than 4%.