End of Year Market Scan

The US stock market's "dumping" mode has started, with the tech sector suffering widespread losses. Heavyweights like Tesla, Nvidia, and Meta have taken turns declining, and the market looks grim. However, Wall Street folks are still insisting that 2026 will be the year of a turnaround—anyway, the current drop is probably just setting the stage for gains next year.

The hardcore short sellers betting against Nvidia remain stubborn and motivated, claiming they are "sleep-deprived prophets" and that the market will eventually catch up. That said, the current market conditions certainly haven't given them much face.

Precious metals aren't doing much better either. Silver plunged 8% in a single day, gold fell 4.5%, both hitting their lowest levels this month. Internet memes popped up: "When prices rise, it's like a rocket launch; when they fall, it's like parachuting—so fast it’s heart-stopping." Rumors also say some bank futures got liquidated, and retail investors chasing the highs are probably kicking themselves.

Even more astonishing, the gold-silver ratio hit a new low, and the ratio of the total market cap of the S&P 500 to the global gold market cap dropped to its lowest in 60 years. An analyst jokingly said that if you're trapped in gold now, you might have to wait until your grandchildren's generation to break free.

This wave of adjustment is re-pricing market liquidity and risk sentiment. The overall pressure on various assets is likely to continue in the short term. Both traditional finance and the crypto space should prepare for a long-term battle.