General Market Analysis – 18/12/25

US Stocks Crash as Tech Concerns Increase – Nasdaq Down 1.8%
US equity markets moved lower yesterday as renewed concerns around the technology sector weighed on sentiment, dragging all three major indices into negative territory. The Nasdaq underperformed, leading losses as investors once again reassessed stretched valuations across large-cap tech. Treasury markets were relatively subdued, while the US dollar regained some of its recent lost ground against the major currencies. The Dow Jones fell 0.47% to close at 47,885, while the S&P 500 declined 1.16% to 6,721. The Nasdaq saw heavier losses, sliding 1.81% to finish at 22,693. The US dollar index rose 0.25% to 98.40. In rates, the US 2-year Treasury yield edged 0.2 basis points lower to 3.485%, while the 10-year yield ticked up 1.0 basis point to 4.155%. Commodity markets were more active, with oil prices surging after President Trump ordered a blockade of all oil tankers under sanctions entering and leaving Venezuela, raising fresh concerns around global supply. Brent crude jumped 2.87% to $60.62 per barrel, while WTI gained 2.97% to $56.90. Gold extended its advance as haven demand increased, pushing prices higher and back toward recent record levels, ultimately rising 0.99% to $4,345.12 by the close.

Huge Calendar Day Ahead for Traders
Markets will be closely watching a busy slate of economic data and central bank updates today. Early in the session, New Zealand releases its GDP figures, with the market expecting the quarterly number to rise 0.9%. The London session sees two key central bank rate updates, with the Bank of England set to update markets on its latest rate call, the market expecting them to reduce rates from 4% to 3.75%. This is swiftly followed by the ECB’s rate decision, although they are expected to keep rates on hold on this occasion. As always, both banks’ statements and press conferences have the potential to move markets more than the actual rate call, with forward guidance key as we move into 2026. Crucial US CPI data (exp +3.1% y/y) is due out close to the New York open, alongside the Weekly Jobless Claims numbers (exp 224k) and the Philly Fed Manufacturing Index update (exp 2.5).

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