US Markets Slide as December Begins; Bitcoin Tumbles in Major Sell-Off
US stocks fall as December begins, with the Dow, S&P 500, and Nasdaq sliding and bitcoin plunging below $85,000. Tech shares retreat, crypto stocks drop, and Fed rate-cut expectations drive market sentiment.
US markets fall sharply on December’s first trading day as tech stocks retreat and bitcoin plunges in a broad risk-off sell-off.
US stocks opened December on a weak note, with major indices falling sharply and cryptocurrencies extending their multi-week slide. The downturn comes just days after a strong Thanksgiving rally, signaling a quick shift to risk-off sentiment.
The Nasdaq Composite dropped nearly 1%, the S&P 500 slipped around 0.7%, and the Dow Jones Industrial Average fell 0.6% in early Monday trade. Tech stocks led the sell-off, with six of the “Magnificent Seven” — including Nvidia, Meta, and Tesla — pulling back by about 1%.
Bitcoin Crashes Below $85,000
Bitcoin’s decline intensified, plunging nearly 6% and briefly falling below $85,000, before recovering slightly. Ether, XRP, and other altcoins also saw sharp losses as crypto markets reacted to risk aversion and reports of a $9 million hack on Yearn Finance’s DeFi platform.
Crypto-linked stocks such as MicroStrategy, Coinbase, and Robinhood tumbled between 4% and 7% in premarket trading.
Seasonal Trends Under Pressure
December is historically strong for equities, but analysts warn the traditional Santa Claus rally may not materialize this year. Persistent uncertainty — including President Trump’s tariff push and speculation over a potential Federal Reserve leadership change — has kept markets volatile throughout 2025.
Rate-Cut Expectations in Focus
Despite the volatility, markets are still pricing in an 85% chance of a quarter-point Fed rate cut at next week’s policy meeting. With the central bank now in its pre-meeting blackout period, investors are looking to economic data for clues:
- November Manufacturing PMI
- Services PMI
- Jobs data
- Delayed September PCE inflation index — the Fed’s preferred measure, releasing Friday
Global Market Signals Add Pressure
A sell-off in Japanese bonds pushed US Treasury yields higher, adding to investor caution. The 10-year Treasury yield rose after Japan’s two-year bond crossed 1% for the first time in 17 years on expectations of a Bank of Japan rate hike.
Corporate Moves
Barrick Mining shares climbed after the company revealed plans to explore an IPO of its North American gold assets.
Synopsys surged over 7% after Nvidia announced a $2 billion investment to deepen their AI partnership.
Coupang fell 8% following a major data leak affecting millions of users.
