Megacap profit-taking drags U.S. stocks
Key Points
- Russia's manufacturing PMI fell to 48.1, signaling contraction and pressuring the rouble and Russian credit spreads.
- U.S. pending home sales rose in November, supporting mortgage-sensitive assets and complicating further Fed easing.
- BOJ's hawkish summary and Governor Ueda's remarks strengthened the yen, while U.S. CPI releases kept Treasury yields and USD positioning sensitive.
Global Market Summary
The S&P 500 (SPX) fell 0.31% as profit-taking in megacap tech and thin year-end liquidity weighed on risk assets; the Nasdaq Composite (^IXIC) declined 0.48% and the Dow Jones (DJIA) slipped 0.39%. European benchmarks were mixed after post-holiday buying in cyclicals lifted early session highs: the CAC 40 (FRA40) rose 0.10%, the DAX (DAX) gained 0.05% while the FTSE 100 (UKX) edged down 0.04%. In Asia the Shanghai Composite (000001.SS) was little changed, up 0.04%, while the Nikkei (NKY) lost 0.44% amid BOJ policy commentary.
Top Movers
Energy led U.S. sector gains with XLE (0.96%) outperforming while consumer discretionary and materials lagged—XLY (-0.91%), XLB (-0.77%). Notable stock movers included RGC (15.08%), PRAX (11.37%) and DBRG (9.77%); the largest decliners were BRBR (-9.71%), SBSW (-9.14%) and AUGO (-8.69%).
Macro highlights
Russia's manufacturing PMI fell to 48.1, signaling deeper contraction and increasing downside pressure on the rouble and Russian credit spreads. U.S. pending home sales unexpectedly rose 3.3% in November, supporting mortgage-sensitive assets and complicating the path for further Fed easing. The BOJ's summary of opinions and Governor Ueda's remarks kept a hawkish tone and contributed to yen strength, while U.S. November CPI releases kept Treasury yields and USD positioning sensitive ahead of FOMC minutes.
News that moved markets
European trading resumed and the STOXX 600 hit an early record as buying in basic resources and dovish central bank commentary pushed cyclicals higher and prompted year-end rebalancing flows. On Wall Street, profit-taking in megacap tech and AI names including NVDA and TSLA, together with thin holiday liquidity, weighed on U.S. indexes and amplified intraday moves. Wereldhave completed the sale of Sterrenburg in Dordrecht, finalized the Ville2 acquisition and secured new long-term financing. VCI Global signed a binding term sheet to acquire a controlling 51% stake in RTCAR Mexico, and Verisk announced it ended its effort to acquire AccuLynx.
Upcoming session watchlist
- US FOMC Minutes — Dec 30, 07:00 PM | Provides insights into Federal Reserve policy deliberations and rate outlook.
Key Takeaways
- U.S. indexes fell after profit-taking in megacap tech and AI names, with thin year-end liquidity amplifying intraday moves across major benchmarks.
- European cyclicals and basic resources rallied on dovish central bank commentary and year-end rebalancing, lifting early session highs and the STOXX 600.
- Energy led U.S. sectors while consumer discretionary and materials lagged; several mid- and small-cap stocks posted outsized gains and losses amid thin liquidity.
References
- 1. https://www.investing.com/news/stock-market-news/european-shares-touch-record-high-as-markets-resume-postholiday-trading-4423472
- 2. https://www.investing.com/news/economy-news/us-stock-futures-inch-lower-after-last-weeks-rally-in-holidayshortened-week-4423605
- 3. https://x.com/Bank_of_Japan_e/status/2005609896440447208
- 4. https://x.com/RapidResponse47/status/2005699370768117943
- 5. https://www.reuters.com/business/russian-factory-activity-shrinks-fastest-pace-since-march-2022-pmi-shows-2025-12-29/
- 6. https://www.reuters.com/business/us-pending-home-sales-surge-highest-nearly-3-years-november-nar-says-2025-12-29/
- 7. https://www.reuters.com/world/asia-pacific/boj-debated-need-more-rate-hikes-even-after-december-move-summary-shows-2025-12-29/
- 8. https://www.bls.gov/news.release/cpi.nr0.htm
- 9. https://x.com/RapidResponse47/status/2005671897103815072
- 10. https://x.com/Barchart/status/2005510862950306124
- 11. https://x.com/Barchart/status/2005729470544765335
- 12. https://x.com/Barchart/status/2005515139014119925
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