US stocks closed lower on Monday as investors adopted a cautious stance ahead of Wednesday’s Federal Reserve policy announcement. The market is pricing in a high probability of a rate cut, while several major M&A headlines also drew attention. Paramount’s Skydance offered a 30 dollar per share all-cash bid to acquire Warner Bros Discovery. IBM announced an 11 billion dollar deal to acquire Confluent.
The Fed begins its two-day policy meeting on Tuesday and will release its final rate decision of the year on Wednesday, followed by Chair Powell’s press conference.
In recent weeks, expectations for a December rate cut have risen steadily. According to CME’s FedWatch tool, rate-cut odds have climbed to around 90 percent, up from less than 67 percent one month ago.
Kevin Hassett, Director of the White House National Economic Council and a leading candidate to succeed Powell, commented Monday that the Fed must rely on incoming data, but the ongoing government shutdown has delayed several key releases. The Bureau of Labor Statistics has postponed October data collection and will publish October and November PPI figures together in the January 14, 2026 report.
US Market
Mega-cap tech mostly slipped. Alphabet A fell 2.29 percent, Amazon dropped 1.16 percent, Meta lost 0.98 percent, Apple dipped 0.32 percent. Microsoft rose 1.63 percent and Nvidia gained 1.72 percent.
The Nasdaq Golden Dragon China Index edged up 0.08 percent. Chinese ADRs were mixed: Gaotu and 21Vianet jumped more than 4 percent, while Baidu and Miniso gained over 3 percent. Xpeng and New Oriental rose more than 2 percent. NetEase fell over 2 percent.
Market Snapshot:
Dow Jones fell 215.67 points, or 0.45 percent, to 47739.32
Nasdaq lost 32.22 points, or 0.14 percent, to 23545.90
S&P 500 slipped 23.89 points, or 0.35 percent, to 6846.51
Hong Kong Market
Hong Kong stocks traded lower. Major tech names declined across the board. Xiaomi, Kuaishou, Bilibili, and Baidu dropped more than 2 percent, while Meituan and NetEase fell over 1 percent.
Gold and metals stocks were under pressure. Zijin Mining slid more than 4 percent. Analysts noted that a combination of BOJ tightening expectations, hawkish ECB commentary, and remarks from Kevin Hassett all weighed on global rate-cut hopes for 2025. Markets have largely priced in a Fed cut this week, but investors fear the statement and Powell’s tone may signal a higher bar for further easing.
Chinese property developers retreated. China Jinmao fell more than 11 percent. JPMorgan warned that credit risks remain highly polarized: TMT is strong, SOEs are stable but expensive, and real estate remains weak. Vanke’s domestic bond extension request intensified concerns about private developers’ funding conditions. Despite policy easing, inventories remain heavy and demand remains soft.
Market Snapshot:
Hang Seng Index fell 0.84 percent to 25549.90
Hang Seng Tech Index dropped 1.32 percent to 5587.69
HSCEI slipped 1.12 percent to 8981.84
A50 Market
A-share markets traded in a tight range with mixed performance.
At midday:
Shanghai Composite fell 0.13 percent to 3918.83
Shenzhen Component rose 0.09 percent to 13341.62
ChiNext gained 1.07 percent to 3224.38
Turnover hit 1.26 trillion yuan, with over 3500 stocks declining.
Active sectors included CPO, components, and retail, while Hainan names corrected.
Market Snapshot:
Shanghai Composite fell 0.13 percent to 3918.83
Shenzhen Component rose 0.09 percent to 13341.62
ChiNext gained 1.07 percent to 3224.38
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