US stocks closed lower on Monday, led by declines in technology and AI-related shares. Investors continued rotating out of high-growth tech names into lower-valuation sectors, while positioning ahead of a busy week of key US economic data.
Major technology stocks came under pressure. Salesforce fell 2.9%, Amazon lost 1.6%, Apple slipped 1.5%, and Microsoft declined 0.8%. As funds continued to exit AI-focused trades, Oracle dropped 2.7% and Broadcom slid 5.6%, extending last week’s sharp losses in both names.
Upcoming economic data could set the tone for markets in the days ahead. November nonfarm payrolls are scheduled for release on Tuesday, alongside delayed October retail sales data. These reports were postponed due to the US government shutdown earlier this fall. Meanwhile, the November Consumer Price Index (CPI) is due on Thursday.
Investors are also closely monitoring comments from Federal Reserve officials. New York Fed President John Williams said on Monday that current monetary policy is well-positioned for 2026. Just last week, the Fed cut rates amid rising employment risks and slightly easing inflation pressures.
“Monetary policy is very focused on balancing these risks,” Williams said. “The FOMC has moved policy from mildly restrictive toward a more neutral stance. As a result, policy is well prepared for 2026.”
US Stocks
Most large-cap tech stocks declined. Nvidia rose 0.73%, while Apple fell 1.50%, Microsoft lost 0.78%, Google slipped 0.35%, Amazon dropped 1.61%, and Meta edged up 0.59%. Tesla outperformed, jumping 3.52%. Broadcom slid 5.59%, Oracle fell 2.66%, and Netflix declined 1.49%.
Chinese stocks listed in the US broadly weakened. The Nasdaq Golden Dragon China Index fell 2.17%. Alibaba dropped 3.59%, JD.com fell 2.00%, Pinduoduo lost 1.39%, NIO slipped 0.80%, XPeng declined 3.58%, Li Auto fell 2.58%, Bilibili edged down 0.33%, Baidu dropped 4.94%, NetEase fell 0.68%, Tencent Music lost 1.87%, and Pony.ai plunged 5.03%.
Market Snapshot:
- Dow Jones fell 41.49 points, or 0.09%, to 48,416.56
- Nasdaq fell 137.76 points, or 0.59%, to 23,057.41
- S&P 500 fell 10.90 points, or 0.16%, to 6,816.51
Hong Kong Stocks >>
Hong Kong’s three major indices all moved lower. By midday, technology stocks broadly declined, with Alibaba falling over 3%, while Xiaomi, JD.com, Bilibili, Baidu, and NetEase dropped more than 2%. Tencent, Meituan, and Kuaishou fell over 1%.
Gold stocks also sold off, with Lingbao Gold down more than 6%. JPMorgan noted that the Bloomberg Commodity Index (BCOM) will undergo its annual weight rebalancing in January 2026, with silver expected to face the heaviest selling pressure, potentially equivalent to around 9% of total open interest in silver futures.
Power equipment stocks underperformed, led by Goldwind, which fell more than 5%. Guojin Securities noted that China’s wind power sector is transitioning from cost-driven growth to value-driven growth. The firm favors leading manufacturers with strong product reliability and improving profitability, including Goldwind.
Market Snapshot:
- Hang Seng Index fell 1.91% to 25,138.86
- Hang Seng Tech Index fell 2.41% to 5,366.14
- China Enterprises Index fell 2.12% to 8,728.97
A50 >>
China’s major equity indices fell broadly. By midday, the Shanghai Composite dropped 1.22%, the Shenzhen Component fell 1.88%, and the ChiNext Index declined 2.35%. The Beijing Stock Exchange 50 Index bucked the trend, rising 1.10%.
Total turnover across Shanghai, Shenzhen, and Beijing reached RMB 1.14 trillion, down RMB 58.9 billion from the previous session. More than 4,400 stocks declined across the broader market.
Sector-wise, dairy and retail stocks showed relative strength, while Hainan-related names, film and cinema stocks, and solar stocks came under pressure.
Market Snapshot:
- Shanghai Composite fell 1.22% to 3,820.85
- Shenzhen Component fell 1.88% to 12,866.09
- ChiNext Index fell 2.35% to 3,063.97
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