US stocks closed higher on Tuesday, with technology shares regaining momentum. Micron jumped more than 10%, helping push the S&P 500 to a fresh record high, while the Dow Jones Industrial Average also reached a new all-time high, closing above the 49,000 level for the first time. Traders remained optimistic ahead of several key economic data releases later this week.
Amazon, one of the “Magnificent Seven,” provided a strong boost to all three major indices, closing up 3.37%. Other AI-related names also supported the broader market, including Micron Technology and Palantir, with Micron surging more than 10% and Palantir gaining over 3%.
Baird investment strategist Ross Mayfield noted: “Technology stocks paused slightly toward the end of last year, but no one doubts that artificial intelligence is a disruptive force. We are seeing chip stocks lead the market. That was somewhat expected, but sector rotation remains ongoing.”
Markets were also focused on comments from Federal Reserve officials. Fed Governor Milan said on Tuesday that the central bank may need to cut rates by more than one percentage point in 2026, arguing that current monetary policy is restraining economic growth. “It’s hard to argue that policy is close to neutral,” Milan said. “Policy is clearly restrictive and weighing on economic activity. Cutting more than 100 basis points this year would be reasonable.”
The Fed cut interest rates for a third consecutive meeting last month but signaled no guarantee of further easing in the near term. Policymakers remain divided over the outlook for inflation and the labor market. According to the median projection, officials expect just one rate cut in 2026, while other Fed members have recently suggested policy may already be close to a neutral stance.
US Stocks
Large-cap tech stocks were mixed. Tesla fell 4.14%, Apple dropped 1.83%, Alphabet (Class A) declined 0.7%, Nvidia slipped 0.47%, while Meta gained 0.28%, Microsoft rose 1.2%, and Amazon jumped 3.38%.
Popular China-related stocks were also mixed. The Nasdaq Golden Dragon China Index fell 0.78%. Hesai surged more than 10%, Pony.ai rose over 5%, while Chagee and Legend Biotech gained more than 3%. KE Holdings and Trip.com added over 1%. On the downside, BOSS Zhipin dropped more than 6%, Tencent Music fell over 4%, Alibaba declined more than 3%, and Baidu and Li Auto lost over 1%.
Market Snapshot:
- Dow Jones: +484.90 points (+0.99%) to 49,462.08
- Nasdaq: +151.35 points (+0.65%) to 23,547.17
- S&P 500: +42.77 points (+0.62%) to 6,944.82
Hong Kong Stocks
Hong Kong equities moved lower, with all three major indices trading in the red by midday. Tech stocks broadly declined, with Alibaba down more than 4%, Bilibili falling over 3%, and Kuaishou, NetEase, and Meituan each dropping more than 2%.
Biotech stocks continued to outperform, with Akeso rising over 6%, while non-ferrous metals also strengthened, led by CMOC, which climbed more than 5%. Oil stocks weakened, with PetroChina down over 3%, and auto stocks underperformed, as NIO fell more than 3%.
Citi raised its short-term copper price target to $14,000 per tonne, but warned the rally may be nearing exhaustion, suggesting January could mark the high for 2026. Analysts noted that prices above $13,000 would encourage scrap supply, helping rebalance the market unless new catalysts such as a sharp dollar decline or unexpected supply disruptions emerge.
Oil stocks came under pressure after reports that Venezuela’s interim government plans to transfer 30–50 million barrels of oil to the US for sale at market prices, with proceeds overseen by the Trump administration.
Market Snapshot:
- Hang Seng Index: −1.01% to 26,439.68
- Hang Seng Tech Index: −1.65% to 5,729.41
- China Enterprises Index: −1.11% to 9,141.25
A50
Mainland China equities opened higher across the board. By midday, the Shanghai Composite Index rose 0.29%, the Shenzhen Component gained 0.35%, the ChiNext advanced 0.41%, and the Beijing Stock Exchange 50 Index jumped 0.91%. Total turnover across Shanghai, Shenzhen, and Beijing reached RMB 1.85 trillion, up from the previous session, with more than 2,500 stocks advancing.
Sector-wise, memory chips, photoresist materials, rare earth magnets, semiconductor equipment, non-ferrous metals, controlled nuclear fusion, copper interconnects, innovative pharmaceuticals, and tourism stocks led gains. Meanwhile, oil and gas services, titanium dioxide, cross-border payments, pork producers, and military equipment lagged.
Market Snapshot:
- Shanghai Composite: +0.29% to 4,095.54
- Shenzhen Component: +0.35% to 14,071.35
- ChiNext: +0.41% to 3,332.74
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