Today’s Outlook:
• US MARKET : At the close of NYSE, Dow Jones Industrial Average gained 663 points, or 1.4%, while the S&P 500 index gained 0.9%, and the NASDAQ Composite added 0.7%. The S&P 500 closed higher Tuesday, as a jump in health care and consumer stocks offset an Nvidialed dip in tech.
Nvidia fell on competition concerns after The Information reported Monday that Google is in discussions with Meta to supply the latter with its AI chips in 2027 as part of multi-billion dollar agreement. Nvidia stock traded sharply lower, weighing on the tech heavy Nasdaq.
The recent positive tone has been helped by dovish comments from a number of Fed policymakers, prompting resurgent bets that the Fed will cut interest rates further in December.
New York Fed President John Williams said last week that the central bank still could cut rates in the near-term to support the labor market, an this view has been largely echoed by his colleagues Christopher Waller and Mary Daly. The Wall Street Journal reported on Monday that these allies of Federal Reserve Chair Jerome Powell have laid the groundwork for him to push through an interest rate cut during the central bank’s December 9-10 meeting. But the decision is likely to be contested in an increasingly divided rate-setting committee, especially as a lack of clear data points for October leave the Fed flying blind into its final meeting for the year.
With this in mind, the release of weaker than expected U.S. retail sales has garnered some attention. Retail sales rose 0.2% in September, a slowing from the unrevised 0.6% gain in August, the Commerce Department’s Census Bureau said on Tuesday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, rising 0.4% following a previously reported 0.6% increase in August. The report, originally due in mid-October, was delayed by the 43-day shutdown of the government.
Still, the odds for a December rate cut remained unchanged from a day earlier at around 80%, according to Investing.com’s Fed Rate Monitor Tool. PCE price index data, the Fed’s preferred inflation gauge, is due on Wednesday.
• EUROPEAN MARKET : European stocks closed higher on Tuesday, despite being weighed down by weak regional growth earlier in the session, as investors continued to monitor news regarding a possible Federal Reserve rate cut next month. The DAX index in Germany climbed 1%, the CAC 40 in France gained 0.8% and the FTSE 100 in the U.K. also rose 0.8%.
The German economy stagnated in the third quarter of 2025 compared with the previous quarter, the statistics office said on Tuesday, confirming its preliminary reading. Additionally, November’s Ifo data, released on Monday, showed that the country’s businesses have downscaled their previous optimism, suggesting a tricky final quarter of 2025.
New car sales in Europe rose 4.9% in October as electric cars outpaced petrol and diesel registrations, European Automobile Manufacturers’ Association data showed on Tuesday.
• ASIAN MARKET : Most Asian stocks rose on Tuesday as technology shares tracked an overnight rebound in their U.S. peers, while growing confidence that the U.S. Federal Reserve will cut interest rates in December also aided risk appetite. But overall gains were limited amid caution over a diplomatic row between China and Japan and fiscal risks in the developed world. Tech shares were also nursing steep losses in recent sessions.
Tech-heavy Asian bourses were the best performers for the day, with Hong Kong’s Hang Seng index rising 0.7%, while South Korea’s KOSPI added 0.3%. Sentiment towards tech was aided by optimism over a new AI model from Google, while reports that the company was planning to develop its own AI chips also helped.
Alibaba’s earnings are set to offer more cues on Chinese retail spending, while focus will also be on the company’s AI efforts, given that it is among the leading players in China’s AI industry. Mainland Chinese stocks also rose on a rebound in local tech and chip names. The Shanghai Composite indexes rose 0.9% respectively.
Longer-term Japanese government bond yields fell in recent sessions but remained close to multi-decade peaks hit last week. Concerns over a diplomatic row between Tokyo and Beijing, which showed few signs of ending, also weighed on Japanese shares, especially those in the travel and entertainment sectors.
• COMMODITIES : Oil prices settled over 1% lower on Tuesday after Ukraine hinted that an intense diplomatic push by the U.S. administration to end Russia’s war against it could be yielding fruit. An end to the war in Ukraine could pave the way for the unwinding of Western sanctions against Moscow’s energy trade, potentially adding more supply at a time when commodity prices have been battered by expectations of a glut next year. Brent crude futures fell 89 cents, or 1.4%, to USD 62.48 a barrel, while U.S. West Texas Intermediate crude futures also fell 89 cents, or 1.5%, to USD 57.95 a barrel. Both benchmarks hit their lowest levels since October 22 during intraday trading. Ukrainian President Volodymyr Zelenskiy could visit the U.S. in the next few days to finalise a deal with U.S. President Donald Trump to end the war, Kyiv’s national security chief Rustem Umerov said.
• INDONESIA : The JCI closed in negative territory, slipping 0.56% to 8,521.89, as the index is currently attempting to hold above the 8,400–8,450 area as the next key support. Should the index fail to maintain the 8,400 level, a pullback and consolidation toward the 8,200– 8,400 range is likely. Investors are advised to continue closely monitoring individual stocks using their respective trailing stops, while staying alert to index levels and market responses.
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