US Major Indices Fall in Tandem, Dow Records Largest Decline

US stock markets closed broadly lower on December 2 (local time), the first trading day of December. While the tech-heavy Nasdaq limited its losses relatively, the Dow Jones Industrial Average fell more than 400 points, recording the steepest decline among the three major indices.

The Dow Jones Industrial Average closed at 47,289.33, down 427.09 points (0.90%) from the previous session. The S&P 500 index fell 36.46 points (0.53%) to 6,812.63, while the Nasdaq Composite dropped 89.76 points (0.38%) to 23,275.92. S&P 500 trading volume reached 2.77 billion shares, with Nasdaq volume hitting 6.84 billion shares.

"Correction Phase, But Fundamentals Remain Solid"

Market experts are interpreting this decline as a short-term correction. Robert Schein, Chief Investment Officer (CIO) at Blanke Schein Wealth Management, told CNBC that "the stock market is going through a digestion period," adding that "considering the high likelihood that the Fed will cut rates again next week, the backdrop for the stock market remains strong."

Ahead of the December Federal Open Market Committee (FOMC) regular meeting, markets are treating an additional rate cut as a foregone conclusion. This serves as the foundation for maintaining medium- to long-term investment sentiment despite short-term volatility.

Dollar Strengthens Against Yen, Weakens Against Euro

In foreign exchange markets, the dollar showed strength against the yen but lost ground to the euro. EUR/USD rose 0.11% to 1.1608, while GBP/USD fell 0.09% to close at 1.3211.

The largest movement occurred in USD/JPY. The dollar weakened 0.41% against the yen, closing at 155.49. Meanwhile, USD/CAD rose 0.21% to 1.3999, and USD/CHF gained 0.18% to 0.8045.

Commodity currencies including the Australian and New Zealand dollars showed slight weakness. AUD/USD fell 0.06% to 0.6542, while NZD/USD declined 0.05% to close at 0.5726.

European Markets Generally Fall, Asian Markets Show Mixed Results

Global stock markets showed divergent patterns by region. Canada's S&P/TSX Composite Index plunged 281.00 points (0.90%) to close at 31,101.78, mirroring the Dow's decline.

Most major European indices closed lower. The UK's FTSE 100 fell 0.18% to 9,702.53, while Germany's DAX index plummeted 1.04% to 23,589.44. France's CAC 40 declined 0.32% to close at 8,097.00. The pan-European EURO STOXX 50 remained nearly flat, down just 0.01%.

In contrast, Asian markets showed upward momentum. Hong Kong's Hang Seng Index recorded the largest gain, rising 0.67% to 26,033.26. Malaysia's FTSE Bursa Malaysia KLCI surged 1.25% to 1,624.57, continuing its strong performance. Singapore's STI index (up 0.05%), Indonesia's IDX Composite (up 0.47%), and China's Shanghai Composite Index also closed higher.

[AI Analysis] Wait-and-See Attitude Expected to Intensify Ahead of Fed Meeting

The across-the-board decline on the first trading day of December appears to result from a combination of year-end portfolio rebalancing and anticipation ahead of the FOMC meeting. The Dow's 0.90% plunge particularly suggests that traditional industrial stocks faced more pressure than tech stocks.

Over the coming week, the Fed's rate decision and dot plot release are likely to be the key variables determining market direction. Even if the rate cut proceeds as expected, additional corrections could occur if the Fed's signals regarding the 2026 rate path prove conservative.

Meanwhile, the upward trend in Asian markets appears to reflect expectations for China's economic stimulus measures and export optimism driven by regional currency weakness. As decoupling between global stock markets intensifies, this may be the time for differentiated regional investment strategies.