U.S. stocks saw a slight decline on Wednesday, marking the third consecutive trading day of decrease for the Dow and S&P 500 indices.  

The November ADP private employment data confirmed a cooling labor market, reinforcing expectations of a Fed rate cut next year.  

The market’s focus is on Friday’s nonfarm payroll data to gauge the Fed’s future interest rate trajectory. 

The key data this week will be Friday’s U.S. nonfarm payroll report, considered crucial in interpreting the strength of the U.S. economy and the potential for inflation risks triggered by wage growth. 

There’s near certainty in the market that the Fed’s next move will be a rate cut.  

Currently in a “quiet period,” Fed officials will refrain from public statements until next week’s monetary policy meeting.  

Despite recent hawkish comments from several Fed officials, traders are confident in the Fed’s likelihood to begin cutting rates next year. 

U.S. Stocks

Fundamental Analysis: 

Most large tech stocks declined, with chip stocks falling for three consecutive days.  

Arm dropped nearly 4%, NVIDIA over 2%, Amazon, Intel, and AMD over 1%, and Microsoft by 1%.  

Oil and natural gas, along with the energy sector, experienced significant declines, with First Solar down over 6%, SunPower and Nabors Industries both falling over 5%, and Marathon Oil dropping over 3%.  

Cruise lines, airlines, and lithium battery sectors saw gains, with Carnival Cruise up nearly 6%, American Airlines up over 4%, Norwegian Cruise Line, Delta Air Lines, and United Continental Holdings up over 3%.  

Most popular Chinese concept stocks rose, with the Nasdaq Golden Dragon China Index up by 0.51%.  

NIO surged over 4%, XPeng up over 3%, Weibo and Bilibili up over 2%, JD.com, Manbang Group up over 1%, while Li Auto, Vipshop, and iQIYI saw slight increases.  

Futu Holdings, Alibaba, and Pinduoduo fell over 1%, while Tencent Music, Baidu, and NetEase saw slight declines. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones fell 70.13 points, a decrease of 0.19%, closing at 36,054.43 points. 
• Nasdaq dropped 83.20 points, a decrease of 0.58%, closing at 14,146.71 points. 
• S&P 500 Index declined 17.84 points, a decrease of 0.39%, closing at 4,549.34 points. 

Hong Kong Stocks

Fundamental Analysis: 

Today, the three major indices in Hong Kong opened low and sharply declined afterward.  

Core tech stocks saw widespread declines, with Kuaishou down over 3%, Meituan over 2%, Tencent, Baidu, Alibaba, and NetEase down over 1%.  

International oil price drops led to declines in oil stocks, with PetroChina falling over 3%.  

Most automobile stocks fell, with Li Auto down over 2%, and the electronic components sector saw significant declines, with Sunny Optical Technology dropping nearly 3%. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) dropped 1.07%, closing at 16,287.71 points. 
• Hang Seng Tech Index (HSTECH) fell 1.79%, closing at 3,680.36 points. 
• Hang Seng China Enterprises Index (HSCEI.) declined 1.7%, closing at 5,567.86 points. 

FTSE China A50 Index

Fundamental Analysis: 

The three major indices opened low, experienced initial market fluctuations, and weakened in the following hour, with the Shanghai Composite Index showing a relatively smaller decline.  

Meanwhile, the CSI 50 Index became active again, surging more than 3% at one point. 

Regarding industry sectors, sectors like culture and media, software development, real estate services, gaming, internet services, and diversified finance saw upward movements. 

On the other hand, wind power equipment, power equipment, automobile parts, energy metals, and medical services faced declines.  

Themes such as spatial computing, film and television concepts, AIGC concepts, data elements, ChatGPT concepts, innovation in creativity, and brokerage concepts remained active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell 0.29%, closing at 2,960.33 points. 
• Shenzhen Component Index (SZCOMP) dropped 0.46%, closing at 9,489.38 points. 
• ChiNext Index (CHINEXT) declined 0.49%, closing at 1,872.75 points. 
• SSE STAR Market 50 Index (SSE50) fell 0.93%, closing at 840.89 points. 

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