Market Update
US stocks closed lower on Tuesday, with the Dow and S&P 500 both posting their fourth straight day of losses. Concerns over stretched AI valuations, weakening risk appetite, and fading expectations for a December Fed rate cut weighed on sentiment. Bitcoin briefly fell below 90,000 dollars, signaling reduced investor risk appetite.
Heavy issuance of tech-sector debt has amplified worries about high valuations and the true strength of AI fundamentals. Amazon fell 4.4 percent after launching its first dollar-bond sale in three years, raising 15 billion dollars.
At the same time, concerns are growing that the Federal Reserve may not deliver a third rate cut in December. FedWatch pricing now shows the probability below 50 percent, sharply lower than more than 90 percent just a month ago.
On the data front, ADP estimates show US private-sector employment fell by an average of 2,500 jobs per week in the four weeks through November 1. While weekly jobless claims have not been officially released due to the government shutdown, the Labor Department has updated figures through alternative channels.
US Stocks
Tech giants mostly declined.
NVIDIA fell 2.81 percent, Apple 0.01 percent, Microsoft 2.70 percent, Google 0.26 percent, Amazon 4.43 percent, Meta 0.72 percent, Tesla 1.88 percent, Broadcom 0.63 percent, Oracle rose 0.29 percent.
Chinese ADRs were mixed. The Nasdaq Golden Dragon China Index rose 0.42 percent. Alibaba gained 1.27 percent, JD fell 0.30 percent, Pinduoduo dropped 7.33 percent. Xpeng rose 0.85 percent, NIO fell 1.64 percent, Li Auto dropped 0.80 percent, Bilibili gained 0.34 percent, Baidu rose 2.66 percent.
Market Snapshot
• Dow Jones fell 498.50 points or 1.07 percent to 46,091.74
• Nasdaq fell 275.23 points or 1.21 percent to 22,432.85
• S&P 500 fell 55.09 points or 0.83 percent to 6,617.32
Hong Kong Stocks
Hong Kong’s major indexes traded lower. Xiaomi fell more than 4 percent, Kuaishou more than 2 percent. Energy names led gains, with Sinopec up more than 3 percent. Gold miners strengthened, while EV makers weakened.
Gold stocks rose, with Shandong Gold gaining more than 3 percent. Goldman Sachs expects central-bank buying to keep gold supported, projecting prices could reach 4,900 dollars by late 2026.
EV stocks were weak. Xiaomi Auto dropped more than 4 percent after reporting Q3 revenue of 113.121 billion yuan, up 22.3 percent year-on-year but down 2.4 percent quarter-on-quarter.
Market Snapshot
• Hang Seng Index fell 0.45 percent to 25,812.77
• Hang Seng Tech Index fell 0.98 percent to 5,590.45
• China Enterprises Index fell 0.35 percent to 9,142.76
A-Share Market
Mainland indexes were mixed at midday. The Shanghai Composite slipped 0.04 percent, the Shenzhen Component fell 0.32 percent, and the ChiNext gained 0.12 percent. More than 4,500 stocks declined across the market.
Defense, insurance, and lithium sectors outperformed, while Hainan and gas names retreated.
Market Snapshot
• Shanghai Composite fell 0.04 percent to 3,938.29
• Shenzhen Component fell 0.32 percent to 13,038.33
• ChiNext rose 0.12 percent to 3,072.79
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