Today, the A-shares market once again taught everyone a lesson: the 3900-point threshold was touched but then lost. Over 4,300 stocks in the market were drifting in the red, and the scene was once quite "spectacular." Interestingly, the three groups of power plants and infrastructure, aerospace concepts, and the Beijing Stock Exchange emerged as the spots where funds flocked for risk avoidance.

# How bad was the market today? Let's look at the data first

Should the Federal Reserve cutting interest rates be good news? But the market didn't buy it; it didn't rally at the open and moved downward throughout the day with turbulence. Major capital led the sell-off, and retail investors could only watch their accounts turn green with frustration. The three major indices? All fell flat.

**Regarding the indices:**
The Shanghai Composite dropped 0.7%. After finally climbing back to 3900 points, it couldn't hold on and may need to test the previous rebound level again. The Shenzhen Component and ChiNext Index fared even worse, falling 1.27% and 1.41%, respectively. In the afternoon, they continued downward alongside the Shanghai Index, and the effect of Ningde Times' heavyweight stocks' morning rally was completely wiped out.

**Stock and capital flow:**
Over 4,300 stocks declined, with the median of gains and losses at -1.66%—meaning most stocks fell even harder than the index, with a strong loss effect; net outflow of major funds was nearly 86 billion yuan, a scale not common, indicating large sums are moving out; trading volume across both markets reached 1.86 trillion yuan, nearly 800 billion more than yesterday. Is this volume-driven decline? Usually not a good sign, indicating strong selling pressure.

**Sentiment and themes:**
Market sentiment hit rock bottom. Yesterday's lively consumer stocks (retail, liquor, food), AI applications (marketing, short dramas, Sora concept), and computing hardware (optical modules, liquid-cooled servers) either ended with a "one-day trip" or continued to pull back today; real estate, securities firms, semiconductors, agriculture—these old faces—remained sluggish; local stocks in Fujian even staged a "limit-down wave," making it the bleakest main theme today.

# But there are three "rescue troops" stepping out against the trend

Amidst the sea of green, three sectors performed remarkably and became "safe harbors" for funds:

**1. The "Sky" concept is on fire**
Satellite internet, commercial aerospace, space computing—these "sky"-related sectors continued strong, with cables and Galaxy Electronics among stocks hitting daily limit-ups. The catalyst was clear: Elon Musk confirmed SpaceX's IPO next year, which immediately boosted the sector's enthusiasm.

**2. "Electric" infrastructure takes the lead**
Power grid equipment, ultra-high voltage, AI electricity, nuclear power—these "electric"-related themes performed strongly today, with stocks like Zhongchao Holdings hitting the daily limit; superconductors and nuclear fusion also rose in tandem. The direct reason was that GE Vernova, a leading U.S. electric equipment company, raised its future earnings outlook due to the surge in electricity demand driven by large data center construction—this news directly ignited the enthusiasm for China's electric infrastructure market.

**3. The Beijing Stock Exchange stands out**
The Beijing Stock Exchange 50 Index surged nearly 4% today, with the highest intraday gain approaching 7%, showing an impressive performance; Tianli Compound and Chicheng Shares both hit 30% limit-ups. Essentially, this is a case where, when the main board and ChiNext are sluggish, some funds shift into the Beijing Stock Exchange to "seek gold"—with its smaller market size and higher flexibility, this characteristic is amplified in volatile conditions, forming a clear "see-saw effect" with the main board. To be honest, there's no special good news for the Beijing Stock Exchange; it's mainly funds seeking an outlet.

Additionally, the "giant" new stock Molten Technologies continued its frenzy: only five days after listing, it rose nearly 30% today, with its share price surpassing 900 yuan and a market cap exceeding 400 billion yuan. Despite the incredible popularity, this valuation also makes many people nervous.

# What's happening on the news front?

**1. The Fed's rate cut materializes but the outlook turns "hawkish"**
Last night, the Fed cut rates by 25 basis points as expected, but the dot plot indicated only one more rate cut possible in 2026—this stance is more "tightening" than the market previously expected to be "dovish." After the rate cut was realized, market expectations shifted for the worse, exerting indirect pressure on the A-shares market.

**2. Expectations for electricity demand are reinforced**
The news that GE Vernova raised its earnings outlook directly confirmed the global push for data center construction boosting electricity demand. Market confidence in the long-term prosperity of electricity infrastructure was strengthened, which was the core catalyst for today's strength in electric stocks.

# To sum up: under the weak pattern, structural differentiation has become the main theme

Today's market was a typical "broad decline with increased volume," with sentiment hitting rock bottom. Large capital outflows and volume-driven declines indicate significant disagreement between bulls and bears, with the bears temporarily holding the upper hand.

Currently, the market as a whole remains weak, and structural differentiation is very serious: funds are concentrated in the three sectors of electric infrastructure, aerospace, and the Beijing Stock Exchange for warmth, while almost all other sectors are "disaster zones."

Going forward, two points to watch: first, whether these three strong sectors can continue to withstand selling pressures and maintain their heat; second, whether the overall market volume and sentiment can stabilize. Today's "big bowl" of pain has indeed put a lot of pressure on many people.