Market Update
Dow dropped on Tuesday as investors assessed the latest labor market data. The November nonfarm payroll report painted a picture of a softening US economy, with unemployment climbing to its highest level since 2021 and a sharp downward revision to October job figures. However, the data did little to alter market expectations for the Federal Reserve’s interest-rate path.
Delayed employment data released Tuesday morning showed the US economy added 64,000 jobs in November, following a revised loss of 105,000 jobs in October. The report was postponed due to the recent government shutdown. Meanwhile, the unemployment rate rose to 4.6%, up from 4.4% in September, marking its highest level since 2021. Due to data collection disruptions, the Labor Department was unable to publish the October unemployment rate.
Additional data released on Tuesday showed US retail sales were flat in October, weighed down by weaker auto sales and softer gasoline demand. According to delayed Commerce Department figures, headline retail sales were unchanged month-on-month, while September sales were revised up to a 0.1% increase. Excluding autos and gasoline, retail sales rose 0.5%, suggesting underlying consumer demand remains resilient.
Investors are now turning their attention to November CPI data, due Thursday. Despite the softer labor data, expectations for a near-term Fed rate cut remain muted. According to CME FedWatch, the probability of a January rate cut stands at 24%, unchanged from the previous session.
US Stocks
Mega-cap technology stocks mostly advanced. Nvidia rose 0.81%, Apple gained 0.18%, Microsoft added 0.33%, Meta climbed 1.49%, and Tesla surged 3.07%. Oracle rose 2.02%, while Netflix gained 0.85%. Meanwhile, Alphabet slipped 0.54%, and Amazon closed flat.
Chinese ADRs were mostly lower, with the Nasdaq Golden Dragon China Index down 0.34%. Alibaba fell 0.53%, Pinduoduo dropped 1.25%, NetEase declined 1.85%, while JD.com finished flat. On the upside, Baidu rose 0.40%, NIO gained 0.80%, XPeng added 0.87%, Li Auto climbed 0.24%, and Pony.ai jumped 7.28%.
Market Snapshot
- Dow Jones: -302.30 points (-0.62%) to 48,114.26
- Nasdaq: +54.05 points (+0.23%) to 23,111.46
- S&P 500: -16.25 points (-0.24%) to 6,800.26
Hong Kong Stocks
Hong Kong’s major indices moved higher. By midday, tech stocks were mixed, with Meituan up over 1%, while Lenovo slipped nearly 1%.
Airline stocks led gains, with China Southern Airlines surging over 7%. Latest operational data showed strong November load factors across China’s three major carriers. China Eastern posted a load factor of 87.37%, China Southern recorded 86.29%, and Air China reached 83.3%, all showing solid year-on-year improvements. CITIC Securities noted that high load factors during the low season could translate into stronger pricing power, particularly if business travel continues to recover and the yuan stabilizes.
Gold-related stocks also rebounded, with Chifeng Gold up more than 2%. Dongxing Securities highlighted that easing global monetary policy, combined with geopolitical and economic uncertainty, continues to support precious metals. The firm noted that gold’s safe-haven premium, currency dynamics, liquidity factors, and inflation hedging characteristics remain firmly in play, while silver and platinum continue to face structural supply deficits.
Market Snapshot
- Hang Seng Index: +0.22% to 25,291.40
- Hang Seng Tech Index: +0.02% to 5,403.74
- China Enterprises Index: +0.27% to 8,781.76
China A50
Mainland Chinese equities trended higher in early trading. By midday, the Shanghai Composite rose 0.17%, the Shenzhen Component gained 0.83%, and the ChiNext Index advanced 1.21%. The STAR 50 Index rose 0.32%. Total turnover across Shanghai and Shenzhen reached CNY 1.02 trillion, while more than 3,700 stocks declined, highlighting uneven market breadth.
Sector-wise, energy metals, tourism, and battery stocks outperformed, while Hainan-related names and military electronics came under pressure.
Market Snapshot
- Shanghai Composite: +0.17% to 3,831.43
- Shenzhen Component: +0.83% to 13,021.35
- ChiNext: +1.21% to 3,108.80
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