NY FRIDAY

U.S. Stock Movers

Japan's Indexes Extended Weekly Advance Powered by Friday's Surge

Stocks in Tokyo rebounded and erased the previous session's losses ahead of rate decisions by the Bank of Japan next week. 

The Nikkei 225 Stock Average advanced 1%, the broader Topix soared 1.8%, and the yen hovered at 155.72 against the U.S. dollar. 

Stocks in Tokyo have traded in a tight range amid uncertainty about the Bank of Japan's monetary policy and persistent pressure on the yen. 

Moreover, investors are worried that Japan's economy is likely to stall in 2026 amid geopolitical uncertainty and the expectations of a 5% increase in wages for the third year in a row.

Japan's consumer price inflation has been hovering near the Bank of Japan's target rate of 2%, supporting the case for the central bank to continue its rate-hike campaign. 

The Bank of Japan is likely to increase its short-term rate at the end of its two-day policy meeting on December 19. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1% to 50,678.77, and the broader Topix jumped 1.8% to 3,417.37. 

For the week, the Nikkei 225 advanced 1%, and the Topix gained 1.6%.

Volatile AI-linked stocks rebounded in Friday's trading, despite worries that returns in AI infrastructure are likely to lag expectations. 

Softbank Group jumped 3.1% to ¥17,755.0, Tokyo Electron decreased 2.6% to ¥31,760.0, Lasertec Corp. inched higher 0.4% to ¥31,120.0, and Advantest Corp. fell 1.8% to ¥20,670.0. 

Japan's Weekly Indexes Extended Weekly Advance Powered by Friday's Surge

Stocks in Tokyo rebounded and erased the previous session's losses ahead of rate decisions by the Bank of Japan next week. 

The Nikkei 225 Stock Average advanced 1%, the broader Topix soared 1.8%, and the yen hovered at 155.72 against the U.S. dollar. 

Stocks in Tokyo have traded in a tight range amid uncertainty about the Bank of Japan's monetary policy and persistent pressure on the yen. 

Moreover, investors are worried that Japan's economy is likely to stall in 2026 amid geopolitical uncertainty and the expectations of a 5% increase in wages for the third year in a row.

Japan's consumer price inflation has been hovering near the Bank of Japan's target rate of 2%, supporting the case for the central bank to continue its rate-hike campaign. 

The Bank of Japan is likely to increase its short-term rate at the end of its two-day policy meeting on December 19. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1% to 50,678.77, and the broader Topix jumped 1.8% to 3,417.37. 

For the week, the Nikkei 225 advanced 1%, and the Topix gained 1.6%.

Volatile AI-linked stocks rebounded in Friday's trading, despite worries that returns in AI infrastructure are likely to lag expectations. 

Softbank Group jumped 3.1% to ¥17,755.0, Tokyo Electron decreased 2.6% to ¥31,760.0, Lasertec Corp. inched higher 0.4% to ¥31,120.0, and Advantest Corp. fell 1.8% to ¥20,670.0. 

China's Economic Planners Showed Little Urgency for Additional Stimulus Measures

Stock market indexes in China edged slightly higher after China's economic planners vowed to consider providing additional support to bolster domestic demand. 

The Hang Seng Index gained 1.4%, and the mainland-focused CSI 300 index increased 0.2% amid growing speculation that policymakers may follow through with a mix of fiscal and monetary stimulus measures. 

China's top economic planners, political leaders, and heads of state-owned enterprises sent a signal to investigate how to improve domestic demand and revive the residential property market. 

At the end of the annual Central Economic Work Conference on Thursday, a meeting attended by the members of the CCP Central Committee and State Council, China's leaders sent signals to boost domestic demand and support "high-quality growth." 

China Indexes and Stocks 

The Hang Seng Index increased 1.4% to 25,878.49, and the mainland-focused CSI 300 index edged up 0.2% to 4,562.08. 

Benchmark indexes dropped 0.7% after a week of trading, as investors stayed on the sidelines and debated the 2026 growth outlook and possible stimulus measures. 

Residential property developers advanced for the second consecutive session, following a rate cut by the Hong Kong Monetary Authority to maintain its currency's peg with the U.S. dollar. 

Sun Hug Kai Properties rose 2.7% to HK $98.45, CK Asset Holding Ltd. gained 1.2% to HK $39.82, China Vanke added 0.7% to HK $3.75, and Longfor Group advanced 0.7% to HK $9.42. 

China's Economic Planners Showed Little Urgency for Additional Stimulus Measures

Stock market indexes in China edged slightly higher after China's economic planners vowed to consider providing additional support to bolster domestic demand. 

The Hang Seng Index gained 1.4%, and the mainland-focused CSI 300 index increased 0.2% amid growing speculation that policymakers may follow through with a mix of fiscal and monetary stimulus measures. 

China's top economic planners, political leaders, and heads of state-owned enterprises sent a signal to investigate how to improve domestic demand and revive the residential property market. 

At the end of the annual Central Economic Work Conference on Thursday, a meeting attended by the members of the CCP Central Committee and State Council, China's leaders sent signals to boost domestic demand and support "high-quality growth." 

China Indexes and Stocks 

The Hang Seng Index increased 1.4% to 25,878.49, and the mainland-focused CSI 300 index edged up 0.2% to 4,562.08. 

Benchmark indexes dropped 0.7% after a week of trading, as investors stayed on the sidelines and debated the 2026 growth outlook and possible stimulus measures. 

Residential property developers advanced for the second consecutive session, following a rate cut by the Hong Kong Monetary Authority to maintain its currency's peg with the U.S. dollar. 

Sun Hug Kai Properties rose 2.7% to HK $98.45, CK Asset Holding Ltd. gained 1.2% to HK $39.82, China Vanke added 0.7% to HK $3.75, and Longfor Group advanced 0.7% to HK $9.42. 

U.S. Movers: Adobe, Oracle, Synopsys

Oracle plunged 11% to $198.69 after the company's revenue in its fiscal second quarter ending in November fell short of market expectations. 

Revenue increased 14% to $16.0 billion from $14.0 billion, net income soared 95% to $6.1 billion from $3.1 billion, and diluted earnings per share rose to $2.10 from $1.10 a year ago. 

Revenue in the cloud segment increased 34% to $8.0 billion, cloud infrastructure revenue soared 68% to $4.1 billion, and cloud applications advanced 11% to $3.9 billion. 

The board of directors declared a quarterly cash dividend of 50 cents per share paid on January 23, 2026, to shareholders on record on January 9, 2026. 

Adobe Inc. declined 0.4% to $341.05, and the graphic design software company reported better-than-expected results in its fiscal fourth quarter ending in November. 

The software company estimated a double-digit increase in recurring revenue in fiscal 2026, driven by AI-supported tools. 

Revenue increased to $6.2 billion from $5.6 billion, net income advanced to $1.9 billion from $1.6 billion, and diluted earnings per share rose to $4.45 from $3.79 a year ago. 

The software company guided fiscal first quarter revenue to range between $6.25 billion and $6.30 billion, and diluted earnings per share to range between $4.45 and $4.60. 

Synopsys Inc. decreased 0.8% to $472.0, and the electronic design automation software company reported better-than-expected earnings in its fiscal fourth quarter ending in October. 

Revenue increased to $2.3 billion from $1.6 billion, net income from continuing operations advanced to $448.7 million from $279.3 billion, and diluted earnings per share rose to $2.39 from $1.79 a year ago. 

The company estimated fiscal year 2026 revenue of $9.610 billion at mid-point, including $2.9 billion of expected Ansys revenue and reflecting the impact of approximately $110 million of divested Optical Solutions Group and PowerArtist RTL businesses.

U.S. Movers: Adobe, Oracle, Synopsys

Oracle plunged 11% to $198.69 after the company's revenue in its fiscal second quarter ending in November fell short of market expectations. 

Revenue increased 14% to $16.0 billion from $14.0 billion, net income soared 95% to $6.1 billion from $3.1 billion, and diluted earnings per share rose to $2.10 from $1.10 a year ago. 

Revenue in the cloud segment increased 34% to $8.0 billion, cloud infrastructure revenue soared 68% to $4.1 billion, and cloud applications advanced 11% to $3.9 billion. 

The board of directors declared a quarterly cash dividend of 50 cents per share paid on January 23, 2026, to shareholders on record on January 9, 2026. 

Adobe Inc. declined 0.4% to $341.05, and the graphic design software company reported better-than-expected results in its fiscal fourth quarter ending in November. 

The software company estimated a double-digit increase in recurring revenue in fiscal 2026, driven by AI-supported tools. 

Revenue increased to $6.2 billion from $5.6 billion, net income advanced to $1.9 billion from $1.6 billion, and diluted earnings per share rose to $4.45 from $3.79 a year ago. 

The software company guided fiscal first quarter revenue to range between $6.25 billion and $6.30 billion, and diluted earnings per share to range between $4.45 and $4.60. 

Synopsys Inc. decreased 0.8% to $472.0, and the electronic design automation software company reported better-than-expected earnings in its fiscal fourth quarter ending in October. 

Revenue increased to $2.3 billion from $1.6 billion, net income from continuing operations advanced to $448.7 million from $279.3 billion, and diluted earnings per share rose to $2.39 from $1.79 a year ago. 

The company estimated fiscal year 2026 revenue of $9.610 billion at mid-point, including $2.9 billion of expected Ansys revenue and reflecting the impact of approximately $110 million of divested Optical Solutions Group and PowerArtist RTL businesses.

AI-Linked Stocks Under Pressure After Oracle's Results Overshadow Fed's Rate Actions and Projections

High-flying technology stocks faced sharp headwinds after Oracle's quarterly results and outlook raised worries about the sustainability of elevated investment in AI infrastructure.  

The S&P 500 index decreased 1%, and the tech-heavy Nasdaq Composite declined 2%, as investors shifted focus away from the Fed's rate actions. 

The Federal Reserve lowered its short-term fed funds rate range for the third time in a row and signaled fewer cuts in 2026. 

The fed funds rate range was cut by 25 basis points to between 3.50% and 3.75%, and the divided rate-setting committee focused on weakening labor market conditions. 

The Federal Open Market Committee left its rate outlook unrevised, signaling a possible one rate cut in 2026, revised higher its 2026 GDP growth outlook to 1.7% from 1.6%, and left jobless rate estimates unchanged at 4.5% in 2025 and 4.4% in 2026. 

In the absence of economic data because of the government shutdown, Fed officials worried that the "low-hire, low-fire" labor market may be weaker than the data suggests. 

The central bank is likely to hold off from revising rates at the end of its next meeting in late January, as it evaluates additional economic data and the impact of the Trump administration's aggressive tariffs on goods. 

The Federal Open Market Committee's projections signaled one possible rate cut in 2026, while the market is still holding out for as many as two 25 basis point rate cuts in the next year. 

U.S. Stock Movers 

Oracle plunged 11% to $198.69 after the company's revenue in its latest quarter fell short of market expectations. 

Adobe Inc. declined 0.4% to $341.05, and the graphic design software company reported better-than-expected results in its fiscal fourth quarter. The software company estimated a double-digit increase in recurring revenue in fiscal 2026, driven by AI-supported tools. 

Synopsys Inc. decreased 0.8% to $472.0, and the electronic design automation software company reported better-than-expected earnings in its fiscal fourth quarter. 

AI-Linked Stocks Under Pressure After Oracle's Results Overshadow Fed's Rate Actions and Projections

High-flying technology stocks faced sharp headwinds after Oracle's quarterly results and outlook raised worries about the sustainability of elevated investment in AI infrastructure.  

The S&P 500 index decreased 1%, and the tech-heavy Nasdaq Composite declined 2%, as investors shifted focus away from the Fed's rate actions. 

The Federal Reserve lowered its short-term fed funds rate range for the third time in a row and signaled fewer cuts in 2026. 

The fed funds rate range was cut by 25 basis points to between 3.50% and 3.75%, and the divided rate-setting committee focused on weakening labor market conditions. 

The Federal Open Market Committee left its rate outlook unrevised, signaling a possible one rate cut in 2026, revised higher its 2026 GDP growth outlook to 1.7% from 1.6%, and left jobless rate estimates unchanged at 4.5% in 2025 and 4.4% in 2026. 

In the absence of economic data because of the government shutdown, Fed officials worried that the "low-hire, low-fire" labor market may be weaker than the data suggests. 

The central bank is likely to hold off from revising rates at the end of its next meeting in late January, as it evaluates additional economic data and the impact of the Trump administration's aggressive tariffs on goods. 

The Federal Open Market Committee's projections signaled one possible rate cut in 2026, while the market is still holding out for as many as two 25 basis point rate cuts in the next year. 

U.S. Stock Movers 

Oracle plunged 11% to $198.69 after the company's revenue in its latest quarter fell short of market expectations. 

Adobe Inc. declined 0.4% to $341.05, and the graphic design software company reported better-than-expected results in its fiscal fourth quarter. The software company estimated a double-digit increase in recurring revenue in fiscal 2026, driven by AI-supported tools. 

Synopsys Inc. decreased 0.8% to $472.0, and the electronic design automation software company reported better-than-expected earnings in its fiscal fourth quarter. 

Persistent Yen's Weakness Likely to BoJ's Rate Decision

Stocks in Tokyo faced heavy selling pressure, and morning gains turned to evening losses following another day of sell-off in tech stocks. 

The Nikkei 225 Stock Average decreased 0.9%, the broader Topix fell 1%, and the yen hovered at 155.95 against the U.S. dollar. 

Investors continued to bet that the Bank of Japan is likely to deliver a rate hike after its policy meeting later in the month, dampening the so-called yen-dollar carry trade. 

The U.S. Federal Reserve lowered its short-term benchmark rate range by 25 basis points to between 3.5% and 3.75%, the third decrease in a row following similar-sized rate cuts in September and October. 

The Federal Open Market Committee left its rate outlook unrevised, signaling a possible one rate cut in 2026, revised higher its 2026 GDP growth outlook to 1.7% from 1.6%, and left jobless rate estimates unchanged at 4.5% in 2025 and 4.4% in 2026. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average declined 0.9% to 50,148.82, and the broader Topix fell 1% to 3,357.24. 

Exporters were in focus in Tokyo trading, following the persistent weakness in the yen. Technology stocks remained under pressure after Oracle's sales revenue fell short of market expectations, and a weak profit outlook dampened investor enthusiasm. 

Softbank Group Corp. dropped 7.3% to ¥17,225.0, Sanrio Co. Ltd. declined 1.9% to ¥4,905.0, and Nintendo Co. Ltd. eased 1.6% to ¥11,400.0. 

Persistent Yen's Weakness Likely to BoJ's Decision

Stocks in Tokyo faced heavy selling pressure, and morning gains turned to evening losses following another day of sell-off in tech stocks. 

The Nikkei 225 Stock Average decreased 0.9%, the broader Topix fell 1%, and the yen hovered at 155.95 against the U.S. dollar. 

Investors continued to bet that the Bank of Japan is likely to deliver a rate hike after its policy meeting later in the month, dampening the so-called yen-dollar carry trade. 

The U.S. Federal Reserve lowered its short-term benchmark rate range by 25 basis points to between 3.5% and 3.75%, the third decrease in a row following similar-sized rate cuts in September and October. 

The Federal Open Market Committee left its rate outlook unrevised, signaling a possible one rate cut in 2026, revised higher its 2026 GDP growth outlook to 1.7% from 1.6%, and left jobless rate estimates unchanged at 4.5% in 2025 and 4.4% in 2026. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average declined 0.9% to 50,148.82, and the broader Topix fell 1% to 3,357.24. 

Exporters were in focus in Tokyo trading, following the persistent weakness in the yen. Technology stocks remained under pressure after Oracle's sales revenue fell short of market expectations, and a weak profit outlook dampened investor enthusiasm. 

Softbank Group Corp. dropped 7.3% to ¥17,225.0, Sanrio Co. Ltd. declined 1.9% to ¥4,905.0, and Nintendo Co. Ltd. eased 1.6% to ¥11,400.0. 

China Indexes Trade In Narrow Range Ahead of CEWC Policy Announcements

Stocks in China and Hong Kong diverged as investors awaited policy signals from top leaders. 

The Hang Seng Index advanced 0.5%, and the mainland-focused CSI 300 index decreased 0.3% as investors debated possible stimulus measures in the year ahead.

The Central Economic Work Conference, an annual gathering of top policymakers chaired by China's premier, sets policy priorities and economic targets for the upcoming years and is scheduled for mid-December.  

Investors are estimating the government to lower the 2026 GDP growth target rate to 4.5% from the 5% rate set for 2025, amid an uncertain outlook for exports, weakening domestic consumer demand, and persistent malaise in the residential property market. 

The Hong Kong Monetary Authority adjusted its benchmark rate, reflecting the U.S. Fed's rate actions, and maintained a currency peg with the U.S. dollar.  

The U.S. Federal Reserve lowered the fed funds rate range by 25 basis points to between 3.5% and 3.75%, following similar moves in September and October. 

The Fed's rate cut and positive views on the economy supported the market advance in overnight trading in New York. 

The U.S. economy is in "good shape," and economic growth is likely to pick up after the tariff-related inflationary impact wanes, commented Fed Chair Jerome Powell after the rate decisions. 

China Indexes and Stocks 

The Hang Seng Index rose 0.5% to 25,563.16, and the mainland-focused CSI 300 index declined 0.3% to 4,582.51. 

Jingdong Industrials, Inc., decreased 2% to HK 13.96, and the company listed its stock on the Hong Kong Stock Exchange. 

The industrial supply chain technology and service provider priced its initial public offering at HK $14.10 a share and raised gross proceeds of HK $2.98 billion through the sale of 211.2 million shares. 

China Indexes Trade In Narrow Range Ahead of CEWC Policy Announcements

Stocks in China and Hong Kong diverged as investors awaited policy signals from top leaders. 

The Hang Seng Index advanced 0.5%, and the mainland-focused CSI 300 index decreased 0.3% as investors debated possible stimulus measures in the year ahead.

The The Central Economic Work Conference, an annual gathering of top policymakers chaired by China's premier, sets policy priorities and economic targets for the upcoming years and is scheduled for mid-December.  

Investors are estimating the government to lower the 2026 GDP growth target rate to 4.5% from the 5% rate set for 2025, amid an uncertain outlook for exports, weakening domestic consumer demand, and persistent malaise in the residential property market. 

The Hong Kong Monetary Authority adjusted its benchmark rate, reflecting the U.S. Fed's rate actions, and maintained a currency peg with the U.S. dollar.  

The U.S. Federal Reserve lowered the fed funds rate range by 25 basis points to between 3.5% and 3.75%, following similar moves in September and October. 

The Fed's rate cut and positive views on the economy supported the market advance in overnight trading in New York. 

The U.S. economy is in "good shape," and economic growth is likely to pick up after the tariff-related inflationary impact wanes, commented Fed Chair Jerome Powell after the rate decisions. 

China Indexes and Stocks 

The Hang Seng Index rose 0.5% to 25,563.16, and the mainland-focused CSI 300 index declined 0.3% to 4,582.51. 

Jingdong Industrials, Inc., decreased 2% to HK 13.96, and the company listed its stock on the Hong Kong Stock Exchange. 

The industrial supply chain technology and service provider priced its initial public offering at HK $14.10 a share and raised gross proceeds of HK $2.98 billion through the sale of 211.2 million shares. 

Fed's Economic Views and Projections In Focus Amid Widely Expected Rate Cut

U.S. stock indexes traded in a tight range ahead of the scheduled Fed's rate decisions later today.

The S&P 500 index decreased 0.1%, the tech-heavy Nasdaq Composite inched up a fraction, and the yield on 10-year U.S. Treasury bonds inched higher to 4.21% amid a deepening global bond market sell-off.  

Bonds traded lower as traders dialed down expectations for 2026 rate cuts to two, as policymakers battled to balance inflation and job market expansion amid delayed data releases. 

Traders stayed on the sidelines amid unresolved trade policy issues, elevated youth unemployment levels, resurgent food price inflation, and geopolitical uncertainties linked to Russia, Venezuela, and China. 

Moreover, U.S. monetary policy uncertainty and AI bubble worries kept market sentiment in check. 

As the 2025 year-end approaches, investors are worried that the tech sector rally may hit a wall, as returns on data center investments may lag expectations.  

U.S. Movers 

Braze Inc. soared 15% to $35.20 after the developer of a customer engagement platform reported better-than-expected revenue in the fiscal third quarter. 

AeroVironment Inc. dropped 4% to $270.0, and the drone maker's fiscal second-quarter earnings fell short of market expectations. 

GameStop Corp. dropped 5.7% to $21.78, and the video game retailer and meme stock reported weaker-than-expected revenue and adjusted earnings in the fiscal third quarter. 

Cracker Barrel Old Country Store Inc. decreased 4% to $26.08, and the casual restaurant chain operator reported weaker-than-expected revenue and a narrower-than-estimated adjusted loss in the fiscal first quarter. 

GE Vernova Inc. soared 10.2% to $688.75 after the renewable energy equipment maker said its 2025 revenue is inching towards the upper end of its estimated range. 

Moreover, the company hiked its quarterly dividend to 50 cents a share from 25 cents per share. 

Fed's Economic Views and Projections In Focus Amid Widely Expected Rate Cut

U.S. stock indexes traded in a tight range ahead of the scheduled Fed's rate decisions later today.

The S&P 500 index decreased 0.1%, the tech-heavy Nasdaq Composite inched up a fraction, and the yield on 10-year U.S. Treasury bonds inched higher to 4.21% amid a deepening global bond market sell-off.  

Bonds traded lower as traders dialed down expectations for 2026 rate cuts to two, as policymakers battled to balance inflation and job market expansion amid delayed data releases. 

Traders stayed on the sidelines amid unresolved trade policy issues, elevated youth unemployment levels, resurgent food price inflation, and geopolitical uncertainties linked to Russia, Venezuela, and China. 

Moreover, U.S. monetary policy uncertainty and AI bubble worries kept market sentiment in check. 

As the 2025 year-end approaches, investors are worried that the tech sector rally may hit a wall, as returns on data center investments may lag expectations.  

U.S. Movers 

Braze Inc. soared 15% to $35.20 after the developer of a customer engagement platform reported better-than-expected revenue in the fiscal third quarter. 

AeroVironment Inc. dropped 4% to $270.0, and the drone maker's fiscal second-quarter earnings fell short of market expectations. 

GameStop Corp. dropped 5.7% to $21.78, and the video game retailer and meme stock reported weaker-than-expected revenue and adjusted earnings in the fiscal third quarter. 

Cracker Barrel Old Country Store Inc. decreased 4% to $26.08, and the casual restaurant chain operator reported weaker-than-expected revenue and a narrower-than-estimated adjusted loss in the fiscal first quarter. 

GE Vernova Inc. soared 10.2% to $688.75 after the renewable energy equipment maker said its 2025 revenue is inching towards the upper end of its estimated range. 

Moreover, the company hiked its quarterly dividend to 50 cents a share from 25 cents per share.