US stocks opened sharply lower on Monday as Wall Street’s strong late-November rebound hit resistance on the first trading day of December. Tech stocks led the pullback. The Nasdaq Composite fell nearly 1% at the open before trimming losses, last seen at 23,212, down 0.66%.
The S&P 500 slipped about 0.7%, while the Dow Jones Industrial Average dropped 0.6% after five straight days of gains.
Mega-cap tech names dragged the market. Nvidia, Meta, Tesla, Alphabet, and Microsoft all traded lower. Amazon was the only member of the “Magnificent Seven” not in decline in early action. Nvidia and Meta both fell around 1% as risk sentiment weakened.
The early drop put pressure on expectations for a December “Santa Claus rally.” Analysts warn that 2025’s unusual volatility — driven by tariffs, rate uncertainty, and geopolitical tensions — could disrupt typical seasonal trends.
Bitcoin plunged nearly 6% in early trading. The token briefly fell under $85,000 before bouncing above $86,000. Ether dropped almost 7% to around $2,800. XRP slid 7% near $2.
Crypto-linked stocks followed the downturn. MicroStrategy fell more than 5%. Coinbase and Robinhood lost between 4% and 5%.
The sell-off accelerated after Yearn Finance reported an “incident” in its yETH LST pool, causing a $9 million loss.
US Treasury yields rose as global bond markets reacted to a sharp move in Japanese debt.
The 10-year Treasury yield climbed to around 4.04%. Japan’s equivalent rate surged to its highest level since 2008 on expectations of a Bank of Japan rate hike.
Two-year Japanese yields topped 1% for the first time in 17 years. Markets now price an 80% chance of a BOJ hike on Dec. 19, up from below 25% a week earlier.
Higher domestic yields may encourage Japanese investors to keep more funds at home, reducing flows into US Treasuries and lifting borrowing costs globally.
US Stocks Slip as Dow, S&P 500, Nasdaq Fall:
- The Dow Jones Industrial Average fell 127.78 points, down 0.27%, to 47,588.64.
- The S&P 500 Index slipped 28.87 points, down 0.42%, to 6,820.22.
- The Nasdaq Composite dropped 160.61 points, down 0.69%, to 23,205.08.
A sharp divergence emerged in early trading as biotech and small-cap movers surged while crypto-exposed stocks continued to fall. The mixed performance across sectors reflects a cautious start to December, a month historically known for strong stock market gains.
Investors remain focused on upcoming US economic data, global yield movements, and expectations around the Federal Reserve’s rate decision next week.
Big Gainers and Losers today:
Trading activity remained elevated across several names.
Q32 Bio (QTTB) surged 121.92% to $4.86 on heavy volume of 69 million shares, leading the gainers list with a sharp breakout inside its $1.34–$28.06 52-week range.
Ambitions Enterprise (AHMA) jumped 125.78% to $10.86 with 15 million shares traded, extending volatility across small-cap movers.
On the downside, semiconductor and crypto-linked stocks faced pressure.
Nvidia (NVDA) dipped 0.33% to $176.42 with 18 million shares traded.
Snap (SNAP) fell 1.43% to $7.57, while Intel (INTC) dropped 1.39% to $39.99.
Crypto miners were notably weaker. Bitfarms (BITF) slid 6.03% to $3.27, and BitMine Immersion (BMNR) fell 7.88% to $30.51. Cleanspark (CLSK) also lost 2.72%.
EV maker NIO dropped 1.73% to $5.41, and hydrogen fuel-cell company Plug Power (PLUG) eased 2.24% to $1.97.
Fed rate-cut expectations in focus as key U.S. data arrives
Market attention remains fixed on the Federal Reserve. More than 85% of traders continue to bet on a quarter-point rate cut at next week’s policy meeting. The Thanksgiving rally was fueled by dovish tones from Fed officials, but the central bank is now in blackout mode.
This leaves economic data to guide expectations. Monday brings November manufacturing data. Later in the week, services numbers and new labor-market releases follow.
The key event comes Friday with the long-delayed September PCE inflation report, considered the Fed’s preferred inflation measure.
Investors are also watching for a potential Fed leadership shift. President Trump said Sunday he has chosen a replacement for Chair Jerome Powell but did not disclose the name. White House economic adviser Kevin Hassett is widely viewed as the leading candidate.
Global bond markets rattle Wall Street as Japan signals rate hike
US Treasury yields climbed as global bond markets reacted to a sharp sell-off in Japanese government bonds. The 10-year US Treasury yield rose to 4.08%, tracking a jump in Japan’s 10-year yield to its highest level since 2008.
The move came after BOJ Governor Kazuo Ueda signaled a possible December 19 rate hike, pushing money-market pricing for a move from 25% to nearly 80% in one week. Japan’s two-year yield also breached 1% for the first time in 17 years.
Barrick rises, Synopsys surges on Nvidia stake
Barrick Mining jumped more than 3% after confirming it is exploring an IPO for its North American gold assets. The potential spinoff would include major stakes in Nevada Gold Mines, Pueblo Viejo, and its Fourmile discovery.
Synopsys soared more than 7% after Nvidia disclosed a $2 billion equity investment, paying $414.79 per share to expand partnerships in AI-driven engineering and compute-intensive applications.
Nvidia shares dipped 1.5% early in the session but remain 31% higher year-to-date despite a rough November.