U.S. stocks ended a five-day winning streak on Monday, dragged down by a sharp drop in Bitcoin and rising global bond yields, despite strong expectations for a Federal Reserve interest rate cut.
U.S. stock markets experienced a downturn on Monday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all registering losses, interrupting a recent five-day rally. A primary factor in the decline was a significant drop in Bitcoin, which fell below $86,000, triggering losses in related companies like Coinbase Global and Robinhood Markets. Simultaneously, yields on longer-term Treasurys increased globally, influenced by the Bank of Japan's suggestion of potential interest rate hikes, making bonds more attractive than stocks. Despite these pressures, expectations for a Federal Reserve interest rate cut next week remain high, with an almost 88% probability, driven by a slowing job market and weaker-than-anticipated U.S. manufacturing data. Individual stock movements included Synopsys rising after a $2 billion investment from Nvidia, which also saw gains. Conversely, Airbus slipped due to a software glitch affecting its A320 fleet. International markets were mixed, with Japan's Nikkei 225 falling on domestic interest rate hike concerns. The holiday shopping season, however, appears to have started strongly, with consumer spending during Black Friday and Cyber Monday exceeding expectations.
