US equities post back-to-back losses

General market commentary

U.S. equity markets ended Monday modestly lower, giving back some ground after strong gains last week. Technology and consumer discretionary shares weighed on performance, dragging the Nasdaq Composite down 0.5%, while the S&P 500 slipped 0.4% and the Dow Jones Industrial Average fell 0.5%. From a sector perspective, materials were among the weakest performers, whereas energy equities led the gainers, supported by a near 2% rise in oil prices. Defensive areas such as utilities and consumer staples also outperformed, reflecting a more cautious tone among investors. Bond yields edged lower, with the 10 year Treasury yield closing around 4.11%.

In company news, Nvidia shares declined after Intel announced a 5 billion dollar share issuance to the chipmaker, while Tesla equities slid sharply following reports that the value of a key battery materials supply deal had been revised. Commodities were volatile, with silver retreating sharply after briefly hitting a record high and gold futures also falling after margin requirements were raised by CME Group. On the economic front, data were mixed, with pending home sales rising more than expected in November, suggesting improving housing demand, while the Texas manufacturing survey showed a further deterioration in business conditions. With few major economic releases scheduled this week, investors suggested that market direction may depend more on underlying investor sentiment and leadership from large technology shares.

Latest market and economic update

Asian equities edged lower on Tuesday, tracking Wall Street’s tech slump amid thin holiday liquidity and volatile trading. MSCI’s Asia-Pacific ex-Japan index slipped 0.1%, Japan’s Nikkei fell 0.2%, Taiwan dropped 0.7%, and China’s blue chips declined 0.3%. Despite the losses, all major regional markets remain on track for strong annual gains of around 26–27%.

U.S. equity futures edged lower early Tuesday following Monday’s declines, with sentiment dented by renewed concerns over lofty AI valuations in thin holiday trade. Losses in heavyweight technology shares weighed on after-hours action, while investors remained cautious ahead of forthcoming Federal Reserve minutes and key economic data.

European shares closed slightly higher on Monday, led by tech and auto gains. ASML and Nokia advanced 1% each, while BMW and Mercedes-Benz also rose 1%. Conversely, defense shares fell sharply, with Rheinmetall down 1% and Leonardo and Thales declining 2%, as markets weighed the potential for a Ukraine ceasefire following a Trump-Zelensky meeting.

The U.S. dollar remained steady on Tuesday ahead of the Fed’s December minutes, poised for its steepest annual drop in eight years at 9.6%. The euro strengthened to $1.1772, on track for a 13.7% yearly gain, reflecting Fed rate-cut expectations, shrinking interest rate advantages, and broader political and fiscal uncertainties in the U.S.

Oil prices were steady in Asia this morning after strong gains on Monday, with Brent near $62 a barrel and WTI around $58. Support came from heightened Russia Ukraine and Middle East tensions, although gains were capped by an unexpected rise in US crude inventories reported by the EIA.

Russia accused Ukraine of a drone attack on President Putin’s residence, which Kyiv dismissed as false. The incident disrupted peace talks, with Russia signalling a tougher stance and planning retaliatory strikes. Key territorial disputes over Zaporizhzhia and Donbas remain unresolved, while Trump and Zelenskiy discussed potential security guarantees and a long-term peace framework.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

Nvidia has acquired $5 billion of Intel shares, buying over 214.7 million under a September agreement. The investment provides Intel with a financial boost after costly expansion and production efforts. Approved by U.S. antitrust authorities, the deal is a strategic move for both semiconductor firms, strengthening Nvidia’s position in the AI chip market.

Novo Nordisk has reduced the prices of its obesity drug Wegovy by half in certain Chinese provinces, including Yunnan and Sichuan, for the two highest dosages. The price cuts are also available on JD.com’s online platform. The company said the move aims to ease patient costs, improve treatment adherence, and expand access across China.

Citigroup’s board has approved the sale of its remaining Russian operations, AO Citibank, to investment bank Renaissance Capital, with the deal expected to close in the first half of 2026. The transaction will result in a pre-tax loss of around $1.2 billion for Q4 2025. The business will be classified as “held for sale,” continuing Citi’s gradual exit from Russia that began in 2022.

Samsung Electronics has secured a U.S. government licence allowing it to import chipmaking equipment to its Chinese facilities in 2026. The approval offers temporary relief following earlier licence revocations for some tech firms, as Washington implements an annual approval system for exporting semiconductor tools to China.

Meta Platforms has acquired Singapore-based Manus, a leading autonomous AI agent company, to integrate its technology across Meta products. Manus, which serves millions and recently surpassed $100 million in recurring revenue, will continue operating independently while contributing to Meta AI. The move forms part of Meta’s broader AI expansion and restructuring.

Boeing has been awarded an $8.58 billion contract to design, produce, and deliver 25 F-15IA aircraft for the Israeli Air Force, with an option for 25 additional jets, to be completed by 2035. Separately, its Oklahoma City unit received a $4.2 billion modification for E-4B aircraft support services, covering maintenance, supply management, and technical support through fiscal 2027.

South Korean battery supplier L&F Co’s contract with Tesla has been slashed by 99%, from 3.83 trillion won to 9.73 million won, due to reduced supply needs. The high-nickel cathode material was intended for Cybertruck batteries, but repeated delays and policy changes, including the end of IRA subsidies, limited deliveries.

Lululemon founder Chip Wilson has launched a proxy fight to change the company’s board amid its search for a new CEO. Wilson has nominated three director candidates, aiming to implement boardroom changes before the appointment of the retailer’s next chief executive, according to a Wall Street Journal report.

HOF Capital and BlueFive Capital are reportedly in discussions to acquire Porsche’s stake in Bugatti Rimac, as well as potentially Porsche’s interest in Rimac Group itself. The deal, valued at over €1 billion, may include additional capital from HOF Capital to support Rimac’s growth and expansion plans, according to sources cited by Bloomberg.

Mizuho highlighted Samsung as a top memory pick for 2026, benefiting from growing AI hardware demand. Analyst Jordan Klein noted shifts to GDDR, LPDDR, and SRAM for inference devices, with Samsung leading in GDDR7. Expanding generative AI and enterprise SSD demand could further boost the company across multiple memory segments.

Upcoming data and events

Key economic releases today are the FOMC Meeting Minutes, revealing Fed policy discussions, and the EIA Crude Oil Inventories, which could impact energy prices and inflation expectations.

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