Midnight! China stocks plummeted! A50 once surged

U.S. stocks opened mixed, and maintained a slight fluctuation after opening. As of the time of writing, the Dow Jones Industrial Average fell 0.37%, the S&P 500 index rose 0.01%, and the Nasdaq Composite Index rose 0.5%.

Individual stocks, Google rose over 5% to its highest level since July. Oracle once fell 10%, its largest decline since December 2023. Tesla rose over 3%, with news that Morgan Stanley and Cantor Fitzgerald raised their ratings on the stock.

According to media reports, European regulators have asked Google for more information about its secret advertising partnership with Meta Platforms, the parent company of Instagram, which violated the search company's rules on the treatment of minors online.

Another media report said that the White House said in a statement on Tuesday that the U.S. Commerce Department had approved a plan to provide more than $6.1 billion in subsidies to Micron Technology, a manufacturer of memory chips, to support the construction of several semiconductor factories in the country.

Most of the popular Chinese stocks fell, with the Nasdaq China Dragon Index falling over 4%, up 8.5% in the previous trading day. Bilibili fell over 10%, Xiaopeng Auto, Neta Auto, and iQIYI fell over 6%, Baidu fell over 5%, Li Auto and JD fell over 4%.

The A50 index futures once rose to turn red, now down 0.01%.

UBS strategists said that the high valuation of U.S. stocks is reasonable and may continue to rise next year; the dominance of technology stocks and the improvement of cash flow, as well as the low discount rate, explain the high valuation of U.S. stocks.

Fitch said that the risk of U.S. inflation has risen due to strong consumption and the imposition of tariffs.

Data showed that the final value of unit labor costs in the third quarter of the United States rose 0.8% year-on-year, up from the previous estimate of 1.3%.

This week's market will focus on the CPI inflation data to further judge the monetary policy path of the Federal Reserve.

The U.S. Consumer Price Index (CPI) report will be released on Wednesday, which may affect the interest rate path of the Federal Reserve at its meeting on December 17-18.

Economists polled by Dow Jones expect the data to rise 0.3% month-on-month and 2.7% year-on-year. The data rose 0.2% month-on-month and 2.6% year-on-year last month. The core data is expected to remain at 3.3% in November.

Investors will further judge the monetary policy path of the Federal Reserve based on the CPI data. Analysts believe that a reading in line with expectations is unlikely to hinder easing (rate cuts), but if the data shows that inflation progress has stalled, the chances of the Federal Reserve cutting interest rates for a third consecutive time may decrease.