Market Recap
US stocks tumbled on Thursday, with the Dow and Nasdaq falling for a third straight session as heavy sector rotation and sustained pressure on tech continued weighing on major indexes. Although the US government reopened after a record 43-day shutdown, investor sentiment soured sharply as expectations for a December Fed rate cut plunged.
Following the end of the shutdown, the White House confirmed that October’s key jobs report will be released on time. However, because government operations were frozen for weeks, the report will not include unemployment rate data.
More Fed officials have recently signaled hesitation toward further rate cuts, driving market pricing for a December cut down to nearly 50%. The central bank has already cut rates twice this year, but renewed concerns over persistent inflation and a resilient labor market have softened dovish expectations.
Jake Dollarhide, CEO of Longbow Asset Management, said:
“The key question is whether tariff-driven inflation is temporary or lasting. The Fed is unsure, and that uncertainty makes both cutting and holding rates risky for markets.”
US Stocks
Tech giants fell broadly:
Nvidia down 3.58%, Alphabet Class A down 2.84%, Amazon down 2.71%, Microsoft down 1.54%.
Meta managed to edge higher by 0.14%.
Tesla plunged 6.64% after recalling around 10,500 Powerwall 2 battery systems due to overheating and fire risks.
Chinese ADRs mostly declined as well, with the Nasdaq Golden Dragon China Index down 1.59%.
Baidu fell over 6%, Bilibili dropped more than 4%, XPeng and Nio slid over 3%.
Alibaba rose 1.3%, Huya climbed 2.8%.
Market Snapshot:
• Dow Jones −797.60 pts (−1.65%) at 47,457.22
• Nasdaq −536.10 pts (−2.29%) at 22,870.36
• S&P 500 −113.43 pts (−1.66%) at 6,737.49
Hong Kong Markets
Hong Kong equities slipped across the board at midday. Tech stocks led the decline:
Baidu down over 7%, JD.com down more than 5%, Alibaba down more than 3%, with Kuaishou, Xiaomi, and Lenovo falling over 2%.
Biotech names outperformed, with Ascletis Pharma jumping more than 14% as China’s innovative drug sector continued showing strong revenue and profit growth. Analysts expect biopharma to remain a main investment theme into 2026.
Battery-related stocks dropped, with Tianqi Lithium falling over 4%. HSBC noted strong recovery in energy-storage demand and commercial EV output, signaling an approaching cyclical upturn for leading lithium names.
Market Snapshot:
• Hang Seng Index −1.26% at 26,732.99
• Hang Seng Tech Index −2.20% at 5,849.61
• China Enterprises Index −1.38% at 9,466.55
A50 Index
A-shares traded mixed as the three major indexes hovered in a consolidation pattern.
Shanghai Composite down 0.16%, Shenzhen Component down 1.10%, ChiNext down 1.74%.
Total turnover across Shanghai, Shenzhen, and Beijing reached RMB 1.25 trillion.
Sector performance was mixed:
Free Trade Zone (Hainan), pharmaceuticals, oil & gas, and banks led gains; lithium, memory chips, CPO, and semiconductors pulled back.
Market Snapshot:
• Shanghai Composite −0.16% at 4,022.89
• Shenzhen Component −1.10% at 13,327.91
• ChiNext −1.74% at 3,146.01
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