Market Recap
US stocks closed mixed on Wednesday as the Nasdaq climbed to another record high, driven by gains in tech giants and optimism over easing trade tensions. The Federal Reserve cut rates by 25 basis points and announced it would end balance sheet reduction starting in December, while Chair Jerome Powell signaled that another rate cut in December is not guaranteed.
The Fed lowered the federal funds rate target range to 3.75%–4.00%, in line with expectations. It also said it will stop quantitative tightening (QT) from December 1, ending its monthly $50B reduction in Treasuries and $35B in mortgage-backed securities. Going forward, MBS redemptions will be reinvested into short-term Treasuries, signaling a shift toward a more neutral liquidity stance.
Powell noted that inflation remains “somewhat elevated,” and said that employment and inflation outlooks have changed little since September, adding that “policy is not on a pre-set course.”
US Stocks
Tech stocks mostly advanced, with Nvidia climbing 2.99% to $207.04, pushing its market cap above $5 trillion for the first time. Apple gained 0.26% to $269.70, also hitting a record high with a valuation just over $4 trillion, while Microsoft slipped 0.10%, now valued at $4.025 trillion.
Other tech names performed well: Google (Class C) +2.51%, Amazon +0.46%, Meta +0.03%, Broadcom +3.49%, Tesla +0.21%, and Palantir +4.86%.
Chinese ADRs were mixed: Futu Holdings +5.26%, GDS +5.05%, Alibaba +1.84%, Bilibili +1.39%, NIO +0.71%, Baidu +0.62%, Pinduoduo +0.04%, while Luckin, Xpeng, and JD.com slipped modestly.
US Stocks Snapshot:
- Dow Jones: ↓ 73.37 pts (–0.16%) to 47,632.00
- Nasdaq: ↑ 130.98 pts (+0.55%) to 23,958.47
- S&P 500: flat at 6,890.59
Hong Kong Markets
Hong Kong stocks gained, with all three major indices closing higher. Tech names were mixed — Meituan surged 4%, Tencent rose over 2%, while NetEase and Xiaomi fell.
Gold and metal stocks advanced as Zijin Mining jumped over 4%, supported by optimism surrounding the upcoming US–China leaders’ meeting. Analysts noted that while Powell’s tone was slightly hawkish, the Fed’s decision to end QT was viewed as maintaining a liquidity-friendly stance, lifting market sentiment.
Coal stocks led gains — China Shenhua Energy rose more than 3% — amid reports that the coal cycle bottomed in Q2 2025, with strong demand driving a sharp price rebound since mid-September.
Market Snapshot:
- Hang Seng Index: +0.54% to 26,487.38
- Hang Seng Tech Index: +0.31% to 6,112.17
- China Enterprises Index: +0.53% to 9,425.10
A-Shares (A50)
Mainland Chinese markets were mixed by midday. The Shanghai Composite rose 0.06%, the Shenzhen Component fell 0.02%, and the ChiNext Index slipped 0.23%. Trading volume reached ¥1.56 trillion, with over 3,200 stocks down.
Top-performing sectors: quantum tech, steel, energy metals, and software development.
Lagging sectors: precious metals, semiconductors (CPO, PCB), and education.
Market Snapshot:
- Shanghai Composite: +0.06% to 4,018.86
- Shenzhen Component: –0.02% to 13,688.53
- ChiNext: –0.23% to 3,316.64
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