Market Overview
US stocks closed higher on Tuesday, with the Dow surging 660 points. A weaker ADP employment report signaled further softening in the labor market, while traders sharply increased bets on a December Fed rate cut. Optimism also rose after White House Economic Council Director Kevin Hassett emerged as the frontrunner to become the next Federal Reserve Chair.
NVIDIA fell 2.59 percent after reports that Meta Platforms is considering spending billions to buy Alphabet’s AI chips. The news pushed Alphabet shares to a fresh record high.
Traders continued to react to any signals that may shift the Fed’s policy path. According to CME FedWatch, markets now assign an over 80 percent chance of a 25-bps cut in December.
US Treasury yields fell sharply, with the 10-year yield dropping below 4 percent for the first time in a month after Hassett became the leading candidate for Fed Chair. The move reflects market expectations that he would support President Trump’s push for more aggressive rate cuts.
US Stocks
Major tech stocks mostly rose, with the exception of NVIDIA, which fell 2.59 percent. Apple gained 0.38 percent, Microsoft 0.63 percent, Amazon 1.5 percent, Broadcom 1.87 percent, Meta 3.78 percent and Tesla 0.39 percent.
Chinese ADRs were mixed. Hesai rose 10.98 percent, Luckin Tea +6.69 percent, Pony.ai +5.88 percent, XPeng +3.3 percent, Li Auto +1.1 percent, Pinduoduo +0.45 percent and JD.com +0.28 percent.
Market Snapshot:
Dow Jones +664.18 points (+1.43 percent) at 47,112.45
Nasdaq +153.59 points (+0.67 percent) at 23,025.59
S&P 500 +60.76 points (+0.91 percent) at 6,765.88
Hong Kong Stocks
Hong Kong’s major indices rose. Tech stocks were mixed, with Kuaishou and Bilibili down more than 2 percent, while Meituan gained over 5 percent and JD.com rose more than 1 percent.
Airline stocks outperformed, led by China Eastern Airlines, up more than 6 percent. Analysts noted that lower fuel and FX costs supported Q3 results, though RMB weakness and rising oil prices remain key risks.
Biopharma stocks advanced, with Hengrui rising more than 5 percent. Analysts highlighted China’s growing leadership in next-generation drug development, including ADCs, bispecific antibodies and GLP-1 treatments.
Market Snapshot:
Hang Seng Index +0.46 percent at 26,013.56
Hang Seng Tech Index +0.51 percent at 5,640.45
China Enterprises Index +0.50 percent at 9,204.05
A50 / Mainland China
Mainland A-shares gained across all major indices. The Shanghai Composite rose 0.14 percent, Shenzhen +1.61 percent and ChiNext +2.76 percent. Turnover reached 1.14 trillion yuan, slightly lower than the previous session.
Sectors leading gains included CPO, influenza-related names and semiconductors, while defense and commercial aerospace stocks saw pullbacks.
Market Snapshot:
Shanghai Composite +0.14 percent at 3,875.48
Shenzhen Component +1.61 percent at 12,982.74
ChiNext +2.76 percent at 3,063.09
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