At the onset of December, U.S. stocks experienced modest declines. The S&P 500 and Nasdaq each dipped approximately 0.4%, while the Dow decreased by about 0.7%. These indices managed to recover from more substantial losses seen earlier in the trading session amidst ongoing market volatility. Investor caution was evident as anticipation grew around significant economic data releases due later in the week, notably the delayed September Personal Consumption Expenditures (PCE) report, prior to the Federal Open Market Committee (FOMC) meeting scheduled for the following week.
Bitcoin's value fell by over 6%, dropping below the 86,000 mark. This decline extended its retreat from last month's dip beneath 90,000, negatively impacting overall risk sentiment and exerting downward pressure on cryptocurrency-related stocks, such as Coinbase, which saw nearly a 5% decrease. Major artificial intelligence beneficiaries, including Broadcom, experienced renewed profit-taking, leading to a decline of over 3%. Other tech giants like Microsoft, Alphabet, Meta, Tesla, and Oracle also saw decreases. In contrast, Synopsys shot up nearly 5% after Nvidia announced an investment, aiding Nvidia's 1% rebound and providing some stability to the Nasdaq. Meanwhile, retailers like Home Depot and Walmart gained as the holiday shopping season picked up pace.
