U.S. stocks retreated on Monday, December 1, 2025, erasing part of last week’s strong rally as renewed concerns over global interest rates and a sharp drop in bitcoin weighed on investor sentiment.
The S&P 500 declined 0.5%, snapping a five-day winning streak, while the Dow Jones Industrial Average fell 427 points (0.9%) and the Nasdaq Composite slipped 0.4%.
Last week’s gains had been fueled by rising expectations that the Federal Reserve will cut its benchmark interest rate at its upcoming meeting to support the cooling job market. Traders still place the odds of a rate cut at roughly 85%, according to CME Group data.
However, bond yields climbed on Monday after Bank of Japan Governor Kazuo Ueda hinted at a possible interest rate hike — a move that could tighten global liquidity. The yield on the 10-year U.S. Treasury rose to 4.09% from 4.02% on Friday.
Bitcoin Selloff Hits Crypto Stocks
Bitcoin tumbled to around $85,500, down nearly 6% from the previous day and far below its October level of $125,000. The slump dragged down crypto-related stocks, Coinbase Global dropped 4.8%, Robinhood Markets lost 4.1%, and MicroStrategy (renamed Strategy) slipped 3.3% after announcing it raised $1.44 billion in U.S. dollars to service debt and pay dividends rather than purchase more bitcoin.
Higher Treasury yields tend to draw investors away from riskier assets such as cryptocurrencies and growth stocks, weighing on prices across markets.
Corporate Movers
Tech firm Synopsys surged 4.9% after announcing that Nvidia will invest $2 billion in its stock as part of a new strategic partnership. Nvidia itself reversed early losses to close 1.6% higher, continuing its strong influence over the broader market.
Meanwhile, retail shares posted mixed results despite strong Black Friday and Cyber Monday sales figures. Williams-Sonoma rose 1.3%, while Best Buy fell 2.6% amid concerns about consumer spending resilience heading into year-end.
Global Markets
Overseas, performance was mixed. France’s CAC 40 slipped 0.3%, dragged down by a 5.8% decline in Airbus after the company reported software issues affecting some of its A320 jets. In Japan, the Nikkei 225 fell 1.9% amid worries that the Bank of Japan could abandon its ultra-low interest rate policy.
Economic Data
U.S. manufacturing continued to contract last month, with the Institute for Supply Management (ISM) reporting a sharper-than-expected decline in activity. Manufacturers cited tariff-related pressures and ongoing supply chain disruptions as major concerns.
“Conditions are more trying than during the coronavirus pandemic in terms of supply chain uncertainty,” one manufacturer told the ISM.
At the close, the S&P 500 stood at 6,812.63, the Dow at 47,289.33, and the Nasdaq at 23,275.92, as markets braced for key economic data and the Federal Reserve’s rate decision next week.
