2026-01-08 09:32:58

Overnight US stock market showed a clear divergence, with an overall downward trend. The Dow Jones Industrial Average fell 0.94%, the S&P 500 declined 0.34%, while only the Nasdaq Composite slightly rose by 0.16%, mainly thanks to the collective strength of large tech companies.

Interestingly, the S&P 500 and Dow both hit record highs during the trading session, but as trading progressed, the market's upward momentum quickly exhausted. Particularly, the banking sector experienced a collective correction, with JPMorgan Chase, Bank of America, and Wells Fargo all dropping more than 2%. This synchronized decline is noteworthy.

The performance of precious metals was even more significant. On Wednesday, silver futures prices broke below the $80 mark, closing at $77.613 per ounce, down 4.23%; gold futures closed at $4462.50 per ounce, down 0.75%. The market generally believes that this correction mainly stems from the upcoming annual rebalancing of the Bloomberg Commodity Index. Since gold and silver currently have weights above the benchmark levels, a significant downward adjustment is expected, which directly triggered a large amount of technical deleveraging in funds tracking the index.

Chinese concept stocks also did not escape the decline. The Nasdaq Golden Dragon China Index fell 1.58%, Tencent Music dropped over 5%, Alibaba and KE Holdings both declined more than 2%. With no particularly positive news on fundamentals, coupled with the approaching Spring Festival and light market trading, many investors chose to hold cash and wait for the next market signal.

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BankruptcyArtist

· 01-09 10:13

Silver plunges 4%, a typical technical trap for retail investors. Rebalancing the index will definitely cause casualties, right?

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WhaleInTraining

· 01-08 21:33

Once again, it's the same pattern of opening high and closing low. The banking sector is directly taking a hit, and it feels like everyone is just playing a technical reduction game.

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RugResistant

· 01-08 10:03

Bank stocks are starting to plunge again, haha --- Silver broke below 80, honestly this move was a bit fierce --- It's the Bloomberg index's fault again, these algorithms are really something --- Before the Spring Festival, no one is working, everyone is just watching the show --- Technology is holding up the market, traditional finance is dragging behind, old tricks --- The decline in these Chinese concept stocks is outrageous, Tencent Music dropped 5 points directly, who still dares to buy the dip? --- Hitting a new high and then crashing, the market's temper is really something --- Gold and silver are both running, can rebalancing weights really cause such a big stir? --- Hold cash and wait +1, let's see the signals after the Spring Festival, everyone --- The Dow Jones and S&P 500 have been pushed back, only the Nasdaq is still showing off, the divergence is so obvious --- JPMorgan Chase dropped over 2%, I knew today was not going to be a good day --- This technical reduction in precious metals is really quite aggressive

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LiquidatedThrice

· 01-08 10:02

Bank stocks plummeted, with tech stocks holding up the scene—this rhythm feels a bit familiar. It's the same old technical reduction, so just hold cash and wait for the Spring Festival to pass. Chinese concept stocks are falling so hard; there's really no news to support the market anymore. Silver is dropping so sharply? I thought it was a safe haven, but it still got hammered. Before the Spring Festival, the market was indeed quiet; no one wants to wade into this muddy water.

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IntrovertMetaverse

· 01-08 09:52

Once again, a technical sell-off, the banking sector is really struggling to hold up. Silver drops 4.23% and breaks through support, it seems like those tracking the index are all fleeing. Chinese concept stocks are really suffering; who dares to buy in before the Spring Festival with this rhythm? Holding cash and waiting is more profitable. Big tech is partying alone, other sectors can't lift the market, the divergence is extreme. Bloomberg's recent weight adjustment was quite aggressive, directly exposing the market trend.

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liquidation_surfer