Equities Diverge, Gold and Silver Surge, Crude Oil Slumps

Market Overview

U.S. equities delivered a split performance yesterday. The Dow Jones Industrial Average and small-cap stocks pushed to fresh record highs, supported by a more dovish-than-expected Federal Reserve stance. However, Oracle reignited market concerns after reporting weak cloud revenue and outlining an aggressive capital-expenditure plan, sending its shares tumbling nearly 11 percent and dragging the Nasdaq lower.

Among mega-cap tech names, Alphabet fell 2.43 percent after OpenAI unveiled GPT-5.2, marking the sharpest decline within the “Magnificent Seven.” Broadcom swung sharply in after-hours trading following its earnings release, at one point falling 5 percent. Lululemon, meanwhile, briefly rallied 12 percent on stronger-than-expected results.

Treasury yields dipped initially before rebounding, with the 10-year yield ending slightly higher. The U.S. Dollar Index slipped 0.29 percent. Offshore yuan strengthened notably, breaking above 7.05 for the first time in five sessions and touching a new year-to-date high.

Commodities saw dramatic moves. Precious metals soared, with gold climbing nearly 1.3 percent to break its December high and approach 4,300 dollars. Spot silver surged roughly 3 percent, marking another all-time high. LME copper also briefly set a new intraday record. In contrast, crude oil prices plunged more than 3 percent.

The crypto market experienced sharp swings as Bitcoin initially dropped below 90,000 dollars before rebounding more than 4 percent.

Key Themes to Watch● U.S. Initial Jobless Claims Jump by 44,000

New filings for unemployment benefits saw a substantial increase last week, led primarily by large-population states including California, Illinois, New York and Texas, with California contributing the most to the surge. In stark contrast to the spike in initial claims, continuing jobless claims fell sharply. As of the week ending November 29, continuing claims dropped to 1.84 million, the largest weekly decline in four years.

● Feds Hawkish Tone Fails to Convince Markets

Despite signaling internal divisions and emphasizing data dependency, the Federal Reserves December meeting failed to shift Wall Streets view of its overall dovish trajectory. Major investment banks including JPMorgan, Morgan Stanley and Citigroup continue to expect additional rate cuts early next year, with consensus pointing toward another cut in January.

Events to Watch (GMT+8)

21:00 — 2026 FOMC voter and Philadelphia Fed President Paulson delivers remarks on the economic outlook

21:30 — 2026 FOMC voter and Cleveland Fed President Hammack speaks

23:35 — Chicago Fed President Goolsbee participates in a fireside chat ahead of the 39th Annual Economic Outlook Symposium