The Xia Nachi (03086) exchange-traded fund surged nearly 3%, trading up 2.98% at HK$60.86 with a turnover of HK$5.823 million as of press time. The fund is heavily concentrated in the US technology sector, with Nvidia, Apple, Microsoft, Amazon, and Meta as its top five holdings.

On the news front, US major indexes saw a strong breakout on Monday, with the S&P 500 hitting a record high and the Nasdaq Composite surging 3.5% intraday, marking its largest single-day gain since May 2023. Market analysts point to multiple catalysts for this rally: US Treasury Secretary Scott Bessent told CNBC that a potential Iran agreement could be finalized "in the next day or two," driving oil prices down roughly 6%. This led to easing inflation expectations and a 3-5 basis point decline in Treasury yields, providing strong support for equities.

UBS believes the market may be underestimating the sustainability of the current earnings cycle, with this underestimation outweighing the impact of geopolitical noise surrounding the Strait of Hormuz. The firm's base case is that energy flows through the strait will gradually recover rather than rebound sharply, which should continue to drive equity markets higher, supported by robust earnings growth. UBS noted that the US second-quarter earnings season is proving strong, with both the breadth and magnitude of earnings beats exceeding historical averages.