US stocks closed mixed on Wednesday, with the S&P 500 and Dow Jones Industrial Average retreating after hitting fresh intraday record highs earlier in the session. Some of the market’s strongest performers at the start of the year began to lose momentum, weighing on broader sentiment.
Financials and energy, two sectors that had led gains in early 2026, both fell more than 1% during the session. Energy stocks came under pressure as oil prices declined after US President Donald Trump said Venezuela’s interim authorities would deliver up to 50 million barrels of oil to the United States, raising concerns about increased supply.
Valuations remain elevated as Wall Street heads toward the fourth-quarter earnings season in the coming weeks. According to LSEG data, the S&P 500 is currently trading at a forward price-to-earnings ratio of around 22, down from 23 in November but still well above the five-year average of 19.
On the macro front, data released Wednesday showed US job openings in November fell by more than expected, while a separate ADP report indicated private-sector job growth in December came in below forecasts. These releases marked the resumption of economic data following disruptions caused by the US government shutdown. However, they did little to alter expectations for upcoming Federal Reserve rate cuts, with investors now focused on Friday’s official nonfarm payrolls report.
Geopolitical developments also remained in focus. The US confirmed it had seized a Russian-flagged tanker linked to Venezuela, part of broader efforts by the Trump administration to reshape energy flows in the Americas and pressure Caracas politically. The White House also said Trump is reviewing multiple options to acquire Greenland, including the possibility of military involvement.
US Stocks
Most major technology stocks finished higher. Alphabet (Class A) rose 2.43%, Microsoft gained 1.04%, Nvidia added 1.00%, and Amazon edged up 0.26%. Tesla slipped 0.36%, Apple fell 0.77%, and Meta declined 1.81%. Alphabet’s market capitalization climbed to USD 3.88 trillion, overtaking Apple’s USD 3.84 trillion for the first time since 2019.
Chinese ADRs broadly declined, with the Nasdaq Golden Dragon China Index falling 1.58%. Full Truck Alliance dropped over 7%, Tencent Music slid more than 5%, and KE Holdings and NetEase each fell over 3%. Alibaba, Kingsoft Cloud, Futu Holdings, and Bilibili also posted notable losses.
Market Snapshot:
- Dow Jones: −466.00 points (−0.94%) to 48,996.08
- Nasdaq: +37.10 points (+0.16%) to 23,584.27
- S&P 500: −23.89 points (−0.34%) to 6,920.93
Hong Kong Stocks
Hong Kong equities declined across the board by midday. Tech stocks weakened, with Lenovo falling over 5%, Baidu down more than 3%, and Kuaishou slipping over 2%. Defense stocks moved higher, led by Aerospace Holdings, which gained more than 5%. Semiconductor stocks also outperformed, with Major Holdings rising over 8%. Three new listings debuted during the session.
Defense stocks drew support after Dongwu Securities said 2026 could be a pivotal year for commercial aerospace, driven by multiple maiden launches of reusable and heavy-lift rockets. The firm expects launch capacity to expand significantly, easing bottlenecks in satellite communications development. China’s low-earth-orbit satellite internet program has already entered a mass-launch phase, with further acceleration expected this year.
Semiconductor shares advanced after reports that Nvidia CEO Jensen Huang said at CES in Las Vegas that the company is finalizing licensing details with the US government to deliver H200 chips to China. US authorities approved exports of the chips to selected Chinese customers in December under national security conditions, with initial deliveries expected before the 2026 Lunar New Year.
Market Snapshot:
- Hang Seng Index: −1.22% to 26,136.49
- Hang Seng Tech Index: −1.13% to 5,673.84
- China Enterprises Index: −1.14% to 9,034.76
A50
China’s A-share market showed mixed performance in early trading. The Shanghai Composite edged higher, while the Shenzhen Component and ChiNext declined. The Beijing Stock Exchange 50 Index outperformed. Total turnover across Shanghai, Shenzhen, and Beijing reached RMB 1.78 trillion, down RMB 72.2 billion from the previous session. More than 3,700 stocks advanced.
Sector-wise, gains were led by brain-computer interface technology, controlled nuclear fusion, defense equipment, AI-related themes, short drama gaming, commercial aerospace, quantum technology, and CRO stocks. Underperformers included brokers, insurance, rare earth magnets, tourism and hospitality, retail duty-free, and battery-related names.
Market Snapshot:
- Shanghai Composite: +0.09% to 4,089.45
- Shenzhen Component: −0.20% to 14,003.09
- ChiNext: −0.52% to 3,312.47
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