Key Points

• U.S. equities stabilize: The S&P 500 ended a four-day losing streak, with travel, logistics, and select consumer stocks gaining, while Nike dragged on sentiment post-earnings, indicating a market led by company-specific drivers.
• Asia markets rise ahead of BOJ decision: Investors priced in a potential Bank of Japan rate hike to the highest level since 1995, signaling a shift in global monetary policy and supporting the yen.
• U.S. reviews Nvidia AI chip sales to China: A policy review may allow Nvidia to resume sales to China under new conditions, reflecting a strategic pivot in U.S. export controls and raising geopolitical concerns.
• TikTok secures U.S. future via joint venture: TikTok formed a U.S.-led entity with Oracle, Silver Lake, and MGX to address national security concerns and maintain operations, highlighting increased scrutiny of foreign tech platforms.

U.S. Stocks Stabilize as Consumer and Cyclical Names Drive Selective Gains

U.S. equities showed signs of stabilization after the S&P 500 snapped a four-day losing streak, with investor focus shifting toward company-specific momentum and upcoming earnings. Travel and leisure stocks led on strength, as Hilton and Marriott reached record highs amid resilient demand, while select consumer names including Ralph Lauren, Tapestry and Dollar General also hit all-time peaks, underscoring continued pockets of consumer spending strength.

Cyclical exposure extended to logistics, with C.H. Robinson climbing to a record on improving freight dynamics. In contrast, sentiment softened around Nike, whose shares fell sharply after earnings despite solid North American sales, highlighting concerns over China demand. Attention now turns to earnings from Conagra, Winnebago and Carnival, alongside existing home sales data, as housing-related equities continue to benefit from easing rate expectations, while cannabis stocks lag despite renewed regulatory optimism.

Asia Markets Advance as Focus Turns to Bank of Japan Rate Decision

Asia-Pacific equities moved higher as investors awaited a closely watched Bank of Japan policy decision that could deliver the country’s first rate increase to 0.75% since 1995, a shift expected to support the yen and reinforce efforts to contain persistent inflation. Japan’s Nikkei and Topix both posted solid gains, tracking advances across South Korea, Australia, Hong Kong and mainland China, reflecting cautious optimism ahead of the announcement.

Inflation data showed Japan’s headline consumer prices easing to 2.9% in November, though core inflation remained elevated, underscoring the policy challenge facing the central bank. Regional sentiment was further supported by a rebound on Wall Street, where U.S. equities rose on softer inflation data and strong corporate guidance, strengthening expectations that global monetary conditions could gradually ease into 2026.

U.S. Reviews Nvidia AI Chip Sales to China in Strategic Policy Shift

The Trump administration has launched an inter-agency review that could pave the way for Nvidia to resume sales of its advanced H200 artificial intelligence chips to China, marking a notable recalibration of U.S. technology export policy. The move follows President Trump’s pledge to permit the shipments under a framework that would include a 25% government fee, with the aim of sustaining U.S. leadership in AI while limiting incentives for Chinese firms to accelerate domestic alternatives.

While the proposal has drawn criticism from lawmakers concerned about national security risks, administration officials argue that controlled exports could weaken competitors such as Huawei and preserve U.S. technological dominance. The review process, led by the Commerce Department with input from State, Energy and Defense agencies, underscores rising geopolitical complexity around AI supply chains and introduces fresh uncertainty for global semiconductor markets and U.S.–China economic relations.

TikTok Secures U.S. Future With New Joint Venture Structure

TikTok has agreed to place its U.S. operations into a newly formed entity, TikTok USDS Joint Venture LLC, in a move designed to resolve long-running national security concerns and keep the platform operating in the United States. The structure, backed by Oracle, Silver Lake and Abu Dhabi-based MGX, will give American investors majority ownership and governance, while limiting ByteDance’s stake to under 20%.

Oracle will act as the venture’s trusted security partner, hosting U.S. user data domestically and overseeing compliance with national security requirements, including algorithm safeguards. The agreement, expected to close in late January, reflects a broader recalibration of U.S.–China technology relations, offering regulatory clarity for TikTok while highlighting the growing role of U.S. oversight and infrastructure in global digital platforms.

Conclusion

Today’s market developments underscore a landscape shaped by selective equity leadership, evolving central bank policy, and heightened geopolitical oversight of technology and data flows. While U.S. and Asian equities found support from easing inflation pressures and expectations of policy normalization, investor confidence remains tied to company fundamentals and regulatory clarity rather than broad-based momentum.

At the same time, shifting U.S. policy on advanced technology exports and digital platform governance highlights the growing intersection of markets, national security and global competition. For investors, the environment favors disciplined positioning, close monitoring of policy signals, and a focus on sectors and companies best positioned to navigate structural change.

Investment Insights

• Favor selective equity exposure: Market leadership remains narrow, with gains concentrated in travel, logistics and resilient consumer brands, reinforcing the case for stock-specific selection over broad market positioning.
• Monitor monetary policy inflection points: A potential Bank of Japan rate hike signals a meaningful shift in global liquidity conditions, with implications for currency markets, Japanese equities and cross-border capital flows.
• Assess technology policy risk and opportunity: Evolving U.S. policy on advanced AI chip exports introduces both upside for leading semiconductor firms and longer-term uncertainty tied to geopolitical and regulatory scrutiny.
• Value regulatory clarity in digital platforms: The TikTok joint venture highlights how regulatory resolution can unlock shareholder value and reduce headline risk, particularly for firms providing critical infrastructure and compliance services.

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