Big tech stocks fell in overnight trading. Palantir fell 2%; Nvidia, Tesla, Meta, Alphabet, AMD, Oracle, Amazon, TSMC, Broadcom fell 1%.

Chinese ETFs and ADRs jumped in overnight trading. New Oriental rose 4%; Alibaba, Pony AI rose 2%; JD.com, Baidu, PDD rose 1%.

US stocks fell, signaling risk aversion ahead of a slew of economic data this week even as expectations for a December Federal Reserve interest-rate cut remained firm.

The yen climbed as Bank of Japan Governor Kazuo Ueda said an increase in the benchmark interest rate would represent an adjustment of the degree of monetary easing.

The week ahead is set to offer a crucial snapshot of US economic momentum as policymakers weigh the trajectory of interest rates heading into 2026. With inflation and consumer demand under scrutiny, data is likely to shape expectations for whether the Fed continues its rate-cutting cycle. Investors are also bracing for potential shifts in central bank leadership with White House economic adviser Kevin Hassett signaling markets were ready for the announcement of a new Fed chair.

“Investors are cautious to add risk ahead of upcoming US data and macro events,” said Jung In Yun, chief executive officer at Fibonacci Asset Management Global. This looks like a wait-and-watch approach, he said.

Chinese stocks edged higher at the open after data published Sunday showed that factory activity improved but remained in contraction in November. That extended the streak of declines to a record as the country’s economic slowdown deepens.

Markets are continuing to bet that the central bank will cut its benchmark this month. Swaps data shows traders have priced-in almost a full quarter-point reduction since New York Fed President John Williams said he saw room to lower rates again in the near-term amid labor-market softness. The Bloomberg Dollar Spot Index fell, extending losses into a fifth day.

“For now, the data supports the soft landing, and that contributed to the continued equity rally ahead of Thanksgiving,” wrote Tom Essaye of the Sevens Report. “However, there remain a lot of economic unknowns right now and there are simmering risks that the economy is not as strong as investors believe given the lack of government data in recent months.”

The week begins with fresh data on US consumer spending, including Cyber Monday sales, and the release of more delayed economic indicators. Fed officials will review an outdated reading of their preferred inflation gauge ahead of the Dec. 9–10 policy meeting, where debate is expected to center on labor market conditions and the case for a third consecutive rate cut.