Feng Huang Wang Cai Jing·2025-11-25 23:05Market Overview - The U.S. stock market saw all three major indices rise, with the Dow Jones up 1.43%, the S&P 500 increasing by 0.91%, and the Nasdaq only slightly rising by 0.67% due to Nvidia's stock decline [1] - Nvidia's stock experienced a significant drop of over 7%, leading to a market cap loss of nearly $350 billion, before closing down 2.6%, marking a two-month low [1] - Alphabet, Google's parent company, saw its stock rise by 1.6%, reaching a record closing high for the third consecutive trading day [1] Nvidia and Google Developments - The market turbulence was triggered by a report indicating that Meta is considering using Google's Tensor Processing Units (TPUs) in its data centers by 2027 instead of Nvidia chips [1] - Google's newly released Gemini 3 model has received acclaim for its superior reasoning and coding capabilities compared to OpenAI's ChatGPT, and it is trained using TPUs rather than Nvidia chips [1] Impact on Technology Sector - Nvidia's decline negatively affected the entire tech sector, with key partners like Super Micro Computer (SMCI) dropping over 6%, and CoreWeave, a data center operator, falling by 10% [2] - Competitors such as AMD also faced declines, with a drop of nearly 9.7% during the day [2] Chinese Stocks Performance - The Nasdaq Golden Dragon China Index saw a slight increase of 0.3%, with stocks like Xpeng and Bilibili rising over 3%, while NIO dropped over 4% and Alibaba fell more than 2% [2] Economic Indicators and Fed Policy - The ADP employment report indicated a worsening labor market, with an average loss of 13,500 private sector jobs per week over the past four weeks, significantly worse than the previous week's report [5] - The lack of official data releases due to government shutdowns has made alternative data sources like ADP crucial for economic assessments, influencing the Federal Reserve's upcoming decisions [5][6] - There is a growing expectation for a 25 basis point rate cut in December, with a probability of 84.9% according to CME FedWatch [7] Federal Reserve Leadership Transition - The search for the next Federal Reserve Chair is ongoing, with an announcement expected before Christmas, although it may be delayed until the New Year [8] - The current process includes discussions on simplifying the Fed's policy tools and addressing the complexities of its communication mechanisms [8]