FX.co ★ US Stocks Lower on the First Trading Day of December

Wall Street commenced December with a downturn as the S&P 500 declined by 0.7%, the Nasdaq decreased by 1%, and the Dow Jones experienced a loss exceeding 250 points following a capricious November. Market sentiment leaned towards caution in anticipation of several critical economic announcements this week, including the postponed release of the September Personal Consumption Expenditures (PCE) report, prior to the upcoming Federal Open Market Committee (FOMC) meeting. Current market forecasts suggest an 87% likelihood of an additional 25 basis points reduction in the federal funds rate. The technology sector emerged as the weakest performer, trailed by real estate, industrials, and communication services, whereas the energy sector managed to remain positive. Most major stocks dipped, with declines noted in Nvidia (-0.8%), Microsoft (-0.7%), Apple (-0.5%), Alphabet (-0.7%), Meta (-1.2%), Broadcom (-2.3%), and Tesla (-0.3%). Additionally, stocks tied to cryptocurrencies also fell, with Coinbase Global dropping by 4.7% due to renewed Bitcoin sales. Conversely, Amazon (up 0.5%) and Walmart (up 0.1%) made gains, while Target’s shares remained relatively stable as Cyber Monday shopping progressed.