The S&P 500 fell on Monday, and volatility continued into December.
The broad index lost 0.5%, while the Nasdaq Composite fell 0.4%. The Dow Jones Industrial Average decreased by 357 points, or 0.7%. All three indexes are on track to end their five-day winning streak.
Bitcoin, the leading cryptocurrency, fell more than 6% to trade below $86,000, putting pressure on the stock market. The digital currency fell below $90,000 late last month for the first time since April and has struggled to stay above that mark ever since. Crypto-related stocks, including Coinbase and Strategy, fell on Monday.
Broadcom and Super Micro Computer lost more than 2%, pointing to more profit-taking among some names in the AI trade. But Synopsys shares rose after Nvidia announced an investment in the company, SEEbiz reports. Meanwhile, shares of Nvidia — the artificial intelligence darling turned Wall Street and Main Street favorite — rose more than 1%.
In addition to tech firms, retailers like Home Depot and Walmart thrived as the holiday shopping season got into full swing. The State Street SPDR S&P Retail ETF ( XRT ) added nearly 1% on Monday, extending its five-day gain to more than 7%.
Wall Street is coming off a strong week. The Dow and S&P 500 jumped more than 3%, while the Nasdaq rebounded by nearly 5%.
But the market became turbulent and November was anything but smooth. The S&P 500 and Dow closed slightly above stagnation for the month, while the Nasdaq fell 1.5% to snap a seven-month rally. At one point in November, the tech-leaning Nasdaq was down nearly 8% from its October close amid concerns about valuations for AI stocks.
Certainly, seasonality is on the side of Wall Street with the beginning of December trading. The S&P 500 averaged a gain of more than 1% in December, making it the benchmark’s third-best month of the year on records dating back to 1950, according to the Stock Trader’s Almanac.
“Stocks are going through a period of digestion,” said Robert Schein, chief investment officer at Blanke Schein Wealth Management. “But we think the backdrop for stocks is strong right now, especially given the high likelihood that the Federal Reserve will cut interest rates again next week.”
