Market Update
US stocks closed higher on Wednesday, with the Dow gaining nearly 500 points and the S&P 500 approaching its all-time closing high. After the Federal Reserve delivered another 25-basis-point rate cut, traders increased their expectations for additional easing next year.
The Fed lowered rates for the third consecutive time this year, bringing the federal funds rate to 3.50–3.75 percent.
Officials reintroduced language on “considering the extent and timing of additional adjustments,” though the vote revealed divisions: Kansas City Fed President Schmid and Chicago Fed President Goolsbee opposed the cut, favoring unchanged rates, while Governor Miller argued for a deeper 50-bp cut.
Powell said the standing repo facility remains a key tool for stabilizing funding markets and noted the Fed removed its cap on usage. He avoided signaling whether another near-term cut is likely, saying policy is positioned to adapt to evolving conditions.
While the Fed’s projections indicate only one rate cut next year, markets disagree. CME’s FedWatch tool shows a 68 percent probability of two or more cuts in 2026.
US Equities
Mega-cap tech stocks were mixed:
• Microsoft fell 2.74 percent
• Meta slipped 1.04 percent
• Nvidia dipped 0.64 percent
• Apple gained 0.58 percent
• Google A added 0.99 percent
• Tesla rose 1.41 percent
• Amazon climbed 1.69 percent
Chinese ADRs mostly traded higher, with the Nasdaq Golden Dragon China Index up 0.65 percent. Pony.ai jumped 3.45 percent, while Alibaba and Baidu gained over 1.7 percent.
Market Snapshot
• Dow Jones: +497.46 points, +1.05 percent, 48057.75
• Nasdaq: +77.67 points, +0.33 percent, 23654.16
• S&P 500: +46.22 points, +0.68 percent, 6886.73
Hong Kong Markets
Hong Kong stocks were mixed at midday. Tech names mostly declined, with Bilibili up slightly while Lenovo dropped over 1 percent.
Lithium battery stocks led gains after domestic suppliers announced 15 percent price hikes effective December 16 due to rising upstream raw material costs.
Chipmakers lagged, with ZTE plunging over 9 percent on reports it may pay 1–2 billion dollars or more to settle U.S. bribery allegations tied to overseas business practices.
Market Snapshot
• Hang Seng Index: +0.09 percent, 25563.05
• Hang Seng Tech Index: -0.65 percent, 5544.57
• China Enterprises Index: -0.13 percent, 8942.86
A50 / Mainland China
Mainland markets were mixed at midday.
• Shanghai Composite: -0.46 percent, 3882.72
• Shenzhen Component: -0.18 percent
• ChiNext Index: +0.3 percent
Turnover reached 1.16 trillion yuan, higher than the previous session, with more than 4,200 stocks declining.
Wind power and aerospace remained active, while retail and property sectors weakened.
Risk Disclosure
Trading Securities, Futures, CFDs and other financial products involve high risks due to the rapid and unpredictable fluctuation in the value and prices of these underlying financial instruments. This unpredictability is due to the adverse and unpredictable market movements, geopolitical events, economic data releases, and other unforeseen circumstances. You may sustain substantial losses including losses exceeding your initial investment within a short period of time.
You are strongly advised to fully understand the nature and inherent risks of trading with the respective financial instrument before engaging in any transactions with us. When you engage in transactions with us, you acknowledge that you are aware of and accept these risks. You should conduct your own research and consult with an independent qualified financial advisor or professional before making any financial, trading or investment decisions. This blog may contain speculative statements regarding future expectations, plans, or projections based on information and assumptions currently available to D Prime. Although D Prime considers these assumptions reasonable, such statements involve risks, uncertainties, and factors beyond D Prime’s control, and actual outcomes may differ significantly.
Disclaimer
This information contained in this blog is for general informational purposes only and should not be considered as financial, investment, legal, tax or any other form of professional advice, recommendation, an offer, or an invitation to buy or sell any financial instruments. The content herein, including but not limited to data, analyses and market commentary, is presented based on internal records and/or publicly available information and may be subject to change or revision at anytime without notice and it does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance.
D Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and disclaim any and all liability for any direct, indirect, incidental, consequential, or other losses or damages arising out of or in connection with the use of or reliance on any information contained in this blog. The above information should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction.
D Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. You should conduct your own research and consult with an independent qualified financial advisor or professional before making any financial, trading or investment decisions.
