Stock market recap: Nasdaq Composite climbs, Europe and Asia slip ahead of policy meetings

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Global indexes

- S&P 500: 6,875.16 (+1.23%)

- Nasdaq Composite: 23,637.46 (+1.86%)

- Dow Jones Industrial Average: 47,544.59 (+0.71%)

- FTSE 100: 9,671.12 (+0.18%)

- Nikkei 225: 50,219.18 (−0.58%)

- Hang Seng Index: 26,346.14 (−0.33%)

- Shanghai Composite: 3,988.22 (−0.22%)

The U.S. Dollar Index edged slightly lower, while global bond yields eased as traders sought safety before rate decisions. Gold fell more than 2%, marking a three-week low, and oil prices tumbled on speculation of a potential OPEC+ output increase. Cryptocurrency markets showed mixed performance, with Bitcoin stabilizing and Ethereum slightly lower.

U.S. markets

American stocks extended their upward streak, buoyed by earnings optimism and President Donald Trump’s reported progress on trade accords. Futures remained flat ahead of the Fed’s policy meeting, where markets expect a 25-basis-point rate cut. The CME FedWatch Tool indicated a 97.8% chance of this week’s cut and a 93% probability of another reduction in December.

Lower borrowing costs could continue to support equities, although investors remain alert for any hawkish guidance. Analysts note that dovish signals might trigger another wave of risk-on sentiment across global markets, particularly in technology and growth sectors.

European markets

European shares retreated from record highs as traders turned cautious ahead of central bank meetings and an upcoming summit between U.S. President Donald Trump and China’s Xi Jinping in South Korea.

The pan-European Stoxx 600 declined 0.3% to 575.35, slipping after Monday’s 0.2% advance. Germany’s DAX fell 0.3%, France’s CAC 40 edged marginally lower, and the U.K.’s FTSE 100 closed nearly flat but maintained a slight positive bias.

Market mood was dampened by weak data from Germany, where a key gauge of consumer confidence sank to its lowest level since April, signaling household strain from persistent inflation and geopolitical unease. Analysts said investors preferred to take profits after recent highs, awaiting further direction from the ECB’s monetary stance and the Fed’s decision later in the week.

Energy stocks were broadly weaker following declines in oil, while defensive sectors such as healthcare and utilities saw mild inflows.

Asian markets

Asian equities were mixed on Tuesday, reflecting cautious positioning before a heavy week of global policy decisions. Most regional indices pared early gains as traders assessed both Wall Street’s positive cues and the prospect of further U.S. rate cuts.Optimism about a U.S.–China trade agreement and the likelihood of looser U.S. monetary policy supported early gains, but lingering uncertainty and profit-taking curbed momentum.

Japan’s Nikkei 225 slipped 0.58%, dragged down by technology exporters and soft yen dynamics. The Hang Seng Index in Hong Kong fell 0.33%, while the Shanghai Composite eased 0.22%, pressured by subdued investor sentiment despite strong domestic liquidity.

In Australia, the S&P/ASX 200 reversed Monday’s gains, falling below the 9,050 level as gold miners and technology shares underperformed amid the metal’s price drop. Financial stocks, however, remained resilient, providing some balance to the broader decline. Across the region, investors largely stayed on the sidelines, awaiting clarity from the Fed, BoJ, and ECB before taking new positions.

Summary Conclusions

Global markets remain at a crossroads as traders juggle optimism about corporate earnings and trade diplomacy with caution over central bank signals and inflation pressures. The U.S. continues to display relative strength, bolstered by earnings and policy expectations, while Europe and Asia reflect a more guarded tone ahead of macroeconomic catalysts.

Looking ahead, investors will focus on the Fed’s forward guidance, progress in U.S.–China trade negotiations, and any shifts in OPEC+ strategy. A dovish policy stance paired with trade stability could extend global equity gains, but any disappointment risks reigniting volatility into the final quarter of 2025.

Earlier, we reported that Nvidia stock gains 2.5% on plan for €1 billion German data center.

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