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Crypto Selloff and Tech Pullbacks Weigh on Major Indexes
U.S. stock markets ended the day on a down note as major indexes saw declines. The Dow Jones Industrial Average (DJI) fell by 0.9%, down 427 points to close at 47,289. This ended a four-day winning streak for the blue-chip index.
The S&P 500 saw a drop of 0.5%, closing at 6,829.37, and the Nasdaq Composite dropped 0.4%, ending the day at 23,365.69. The downturn was attributed to a broader risk-off sentiment driven by a significant selloff in cryptocurrencies and pullbacks in big tech shares.
The market pullback followed a strong November rebound, and investors appeared cautious as attention shifted toward upcoming economic data and the Federal Reserve’s December rate decision. One of the primary drivers of the market’s weakness was the ongoing crypto selloff, with Bitcoin losing over 6% of its value, falling to approximately $85,600, and Ethereum dropping nearly 9%. These declines put additional pressure on related stocks and contributed to the broader risk-off sentiment.
The tech sector also saw weakness as major tech stocks like Apple and Tesla experienced slight dips. However, some sectors, including energy and consumer staples, showed resilience, with those stocks performing better than their tech counterparts. Investors have been shying away from riskier assets, and as a result, gold and silver saw gains as safe-haven plays. Meanwhile, bonds and the U.S. dollar remained relatively stable.
Among the notable movers, Disney (DIS) saw an early gain of about 1%, boosted by strong box-office performance from Zootopia 2. Barrick Gold saw shares surge nearly threefold YTD, with an update on its progress expected in February 2026.
Despite the downturn on December 1, the broader market sentiment was tempered by profit-taking following a strong November. The S&P 500 had gained roughly 2% for the month. December, historically one of the strongest months for the index, typically sees an average gain of more than 1%.
As the market awaits the Fed’s December meeting, expectations for a 25-basis-point rate cut remain high, but mixed signals from recent jobs data have led to some uncertainty. Analysts will be closely watching upcoming data to gauge whether the Fed will proceed with easing or hold off on cuts.
