US stocks closed lower on Wednesday, led by sharp losses in technology shares, with the Nasdaq sliding more than 400 points. AI-related stocks came under broad pressure as investors digested the latest US economic data. Meanwhile, Fed Chair frontrunner Christopher Waller reiterated his support for further rate cuts.
Oracle, Broadcom, and other AI-linked companies have suffered notable losses so far in December, as investors rotate toward more value-oriented sectors such as financials. Month to date, Oracle and Broadcom shares are down 12% and 18%, respectively.
Investors continued to assess newly released US economic data. On Tuesday, the US Bureau of Labor Statistics published the November employment report, which also included delayed October figures. The report offered clearer insight into the true health of the US economy following the federal data backlog caused by the government shutdown earlier this autumn.
The latest labor market data suggests hiring is cooling, though not deteriorating rapidly, prompting traders to pause further short-term rate-cut bets. US payrolls rose by 64,000 in November, above economists’ expectations, while the unemployment rate climbed to 4.6%. However, analysts cautioned that the 43-day government shutdown distorted the data.
As a result, markets remain uncertain whether the report materially alters the policy outlook. Attention now turns to Thursday’s inflation data, which could reshape rate expectations heading into the final full trading week of the year.
US Stocks
Large-cap technology stocks fell broadly. Nvidia dropped 3.81%, Apple lost 1.01%, Microsoft slipped 0.06%, Google declined 3.21%, Amazon fell 0.58%, Meta lost 1.16%, Tesla slid 4.62%, Broadcom dropped 4.48%, Oracle fell 5.40%, while Netflix gained 0.23%.
Most US-listed Chinese stocks also declined. The Nasdaq Golden Dragon China Index fell 0.73%. Alibaba lost 1.47%, JD.com fell 0.87%, Pinduoduo dropped 3.69%, NetEase declined 1.33%, NIO fell 3.38%, XPeng lost 2.06%, Li Auto declined 3.18%, Bilibili fell 0.49%, Baidu gained 0.16%, Tencent Music slipped 0.79%, and Pony.ai dropped 2.88%.
Market Snapshot:
- Dow Jones fell 228.29 points (-0.47%) to 47,885.97
- Nasdaq fell 418.14 points (-1.81%) to 22,693.32
- S&P 500 fell 78.83 points (-1.16%) to 6,721.43
Hong Kong Stocks
Hong Kong’s three major indices moved lower. Technology stocks broadly declined, with Xiaomi down over 3%, Lenovo down more than 2%, and Baidu and Alibaba down over 1%.
Airline stocks extended gains, with Beijing Capital International Airport rising more than 7%. Shanghai Pudong, Hongqiao, and Beijing Capital airports have launched a new round of duty-free tenders, introducing foreign participants. Guotai Haitong Securities noted that under the new concession structure, airport duty-free revenue is expected to remain stable, with upside potential if commission rates exceed current assumptions.
Lithium battery stocks underperformed, with CATL falling more than 3%. JPMorgan raised its 2030 global lithium demand forecast to 3.5 million tonnes due to stronger-than-expected growth in energy storage and commercial vehicle demand. Analysts expect a 4–7% supply deficit to push lithium carbonate prices toward $18,000 per tonne by late next year.
Market Snapshot:
- Hang Seng Index fell 0.44% to 25,357.69
- Hang Seng Tech Index fell 1.26% to 5,389.30
- China Enterprises Index fell 0.60% to 8,790.55
China A50
Mainland China indices showed mixed performance in early trading. The Shanghai Composite opened lower but rebounded, while the Shenzhen Component and ChiNext recovered briefly before turning lower again.
At midday, the Shanghai Composite rose 0.16%, the Shenzhen Component fell 0.85%, the ChiNext Index dropped 1.81%, and the Beijing Stock Exchange 50 Index gained 0.64%. Total market turnover reached RMB 1.06 trillion, up RMB 19 billion from the previous session.
Sector-wise, medical services and commercial aerospace stocks advanced, while PCB and battery sectors declined.
Market Snapshot:
- Shanghai Composite up 0.16% at 3,876.40
- Shenzhen Component down 0.85% at 13,111.78
- ChiNext Index down 1.81% at 3,118.30
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