US stocks edged lower on Tuesday, with the S&P 500 falling for a third consecutive session. Investors digested the Federal Reserve’s December meeting minutes, which revealed internal divisions among policymakers, even as most officials agreed that further rate cuts may be appropriate.
Minutes from the December 9–10 Federal Open Market Committee (FOMC) meeting underscored how finely balanced the latest policy decision was. According to the minutes, several officials who supported a rate cut acknowledged that maintaining the current target range would also have been justifiable.
Following the meeting, Fed Chair Jerome Powell said the central bank had lowered rates to a level sufficient to guard against further deterioration in the labor market, while still maintaining pressure on inflation.
Despite the cautious tone, markets maintained expectations for two rate cuts in 2026. Although Fed officials signaled openness to further easing, the minutes did little to push traders toward more aggressive expectations for lower borrowing costs. Investors appear content to wait for additional economic data to validate concerns about labor market risks.
Market sentiment was also influenced by comments from US President Donald Trump, who said he has a preferred candidate for the next Fed chair but is not rushing to announce a decision. He also reiterated that removing Powell remains an option.
US Stocks
By market capitalization, Nvidia slipped 0.36%, Apple fell 0.25%, Alphabet Class A rose 0.09%, Microsoft gained 0.08%, Amazon advanced 0.20%, Meta climbed 1.10% following its acquisition of Manus, Broadcom added 0.13%, TSMC dipped 0.45%, Tesla fell 1.13%, Berkshire Hathaway Class A rose 0.45%, Eli Lilly edged up 0.09%, Walmart declined 0.54%, and JPMorgan slipped 0.10%.
Chinese stocks were mixed, with the Nasdaq Golden Dragon China Index down 0.27%. Alibaba fell 0.76%, JD.com dropped 1.91%, while Baidu surged 4.39%. Pinduoduo eased 0.28%, Bilibili fell 0.37%, NIO gained 3.00%, NetEase rose 0.80%, Futu Holdings declined 0.46%, Li Auto added 0.64%, XPeng jumped 3.80%, and EHang soared 5.79%.
Market Snapshot:
- Dow Jones fell 94.87 points (-0.20%) to 48,367.06
- Nasdaq dropped 55.27 points (-0.24%) to 23,419.08
- S&P 500 slipped 9.50 points (-0.14%) to 6,896.24
Hong Kong Stocks
Hong Kong markets closed the final half trading day of 2025 lower, with all three major indices opening weak and extending losses. Tech stocks were mostly under pressure, with Baidu up more than 1%, while NetEase fell over 3%. JD.com, Meituan, Alibaba, and Kuaishou each lost more than 1%.
Auto stocks opened higher but reversed, with Leapmotor down over 2%. Semiconductor stocks retreated, led by SMIC down more than 1%. Airline stocks outperformed, with China Southern Airlines rising over 4%, while entertainment stocks were active, with Alibaba Pictures up more than 5%.
On an annual basis, the Hang Seng Index gained 27.65% in 2025, the Hang Seng Tech Index rose 23.30%, and the China Enterprises Index climbed 22.17%. Gold and non-ferrous metals delivered standout gains, with Summit Gold surging over 1,200% and Lingbao Gold up more than 570%. Semiconductor stocks also posted strong gains, with Hua Hong Semiconductor up over 240% and SMIC up more than 120%. Crypto-related stocks and biotech names were among the top performers, while real estate and education lagged.
Looking ahead to 2026, expectations of looser global liquidity, alongside policy support for technological innovation, supply-side reform, and domestic demand expansion, could lift corporate earnings and support both valuations and profitability.
Market Snapshot:
- Hang Seng Index fell 0.96% to 25,606.37
- Hang Seng Tech Index dropped 1.24% to 5,509.26
- China Enterprises Index declined 0.95% to 8,905.74
A50
Mainland Chinese equities opened lower across the board. By midday, the Shanghai Composite slipped 0.07%, the Shenzhen Component fell 0.67%, the ChiNext Index dropped 1.10%, and the Beijing Stock Exchange 50 Index declined 0.35%. Total turnover across Shanghai, Shenzhen, and Beijing reached RMB 1.32 trillion, up RMB 21 billion from the previous session, with more than 3,000 stocks declining
Sector-wise, AI agents, commercial aerospace, cross-border payments, real estate, and quantum technology stocks outperformed, while chemical fibers, paper, liquor, fertilizers, pork producers, and liquid-cooling server stocks lagged.
Market Snapshot:
- Shanghai Composite fell 0.07% to 3,962.24
- Shenzhen Component dropped 0.67% to 13,513.21
- ChiNext Index declined 1.10% to 3,207.24
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