Market Wrap | Tech Giants Tumble as Crypto Soars and Chinese Stocks Shine Amidst Mixed Global Markets
1min read On Wednesday, November 27, U.S. stocks closed lower across the board, with the S&P 500 down 0.38% at 5998.74 points, the Dow Jones down 0.31% at 44722.06 points, and the Nasdaq losing 0.59% to close at 19060.48 points.
Large tech stocks were mostly down, including a more than 1% dip in Nvidia, Microsoft, Tesla, and Amazon, while Apple and Meta edged lower. Semiconductor and precious metal sectors weakened, with notable drops in Micron Technologies, Broadcom, and Alcoa. While Dell plunged by over 12% post its third-quarter revenue reports, Bitcoin briefly touched $97,000, invigorating crypto-linked stocks.
Meanwhile, popular Chinese stocks saw significant gains, propelling the Nasdaq Golden Dragon China Index up by 2.81%. Companies like iQIYI, Li Auto, NetEase, and JD.com led with strong performances.
In Europe, major indices were mixed; the UK's FTSE 100 ended higher by 0.20% while France's CAC 40 and Germany's DAX slipped by 0.72% and 0.18%, respectively. In commodities, oil prices showed minor changes; international gold prices experienced a moderate rise.
An unknown US drone maker, Unusual Machines, skyrocketed more than 100% intraday due to its links to the Trump family. Elon Musk called for the dissolution of the CFPB, emphasizing the redundancy of such regulatory bodies. Concurrently, the Japanese yen surged against the dollar, outpacing other G10 currencies amidst speculations of potential central bank actions.
In the market outlook, third-quarter GDP retained resilience at an annualized 2.8% growth. However, concerns loom as U.S. voters express dissatisfaction with economic conditions, spurring Trump's re-election as a potential gamechanger for economic policies. Meanwhile, mortgage applications surged amid slightly reduced borrowing costs and increased housing options.
Amidst these dynamics, the attention remains fixed on Trump's forthcoming trade tariffs, sparking caution in risk assets. Treasury yields edged lower, benefiting from investor sentiment on Trump's upcoming fiscal measures intended to curb government debt loads.
Investors continue to monitor individual tech sectors, like Microsoft's VR patent advances, positioning it with a strengthened innovation foothold. Meanwhile, shifts within the global smartphone market imply tighter competition for Apple despite expectations for rebound across the sector at large.