US stocks fall to their first loss in 6 days as bitcoin tumbles
[December 02, 2025] By
STAN CHOE
NEW YORK (AP) — U.S. stocks gave back some of last week’s rally, as
bitcoin fell again on Monday.
The S&P 500 slipped 0.5% and broke a five-day winning streak. The Dow
Jones Industrial Average dropped 427 points, or 0.9%, and the Nasdaq
composite dipped 0.4%.
Last week’s rally was largely due to rising hopes that the Federal
Reserve will cut its main interest rate next week to help shore up the
slowing job market. Such hopes are still high, with traders betting on a
roughly 85% chance the Fed will cut at its next meeting, according to
data from CME Group.
But yields for longer-term Treasurys nevertheless rose in the bond
market Monday. It was part of a worldwide climb for yields after the
head of the Bank of Japan hinted at a possible hike to interest rates
there.
When bonds are paying higher yields, they can attract investors who
would otherwise buy stocks or cryptocurrencies. Higher yields undercut
prices for all kinds of investments, particularly those seen as the most
expensive.
Bitcoin, which was soaring around $125,000 in October, dropped toward
$85,500. That’s down roughly 6% from a day earlier.
That in turn sent stocks lower across the crypto industry. Coinbase
Global sank 4.8%, and Robinhood Markets fell 4.1%, for example.
Strategy, the company that used to be known as MicroStrategy and now
raises money just to buy bitcoin, lost 3.3%. It said that it sold its
stock and raised a fund of $1.44 billion in U.S. dollars, not in bitcoin,
to help pay for its dividends on preferred shares and interest on its
debt.
On the winning side of Wall Street was Synposys, which rose 4.9%. It
said Nvidia is investing $2 billion in its stock as part of an expanded
partnership. Nvidia, which has become Wall Street’s most influential
stock, swung from an early loss to a gain of 1.6%.
The market, meanwhile, had a mixed reaction to what seems like a strong
start for the holiday shopping season. Consumer spending during the
Black Friday and Cyber Monday retailing bonanza was expected to exceed
expectations, despite uncertainty over the outlook for the U.S. economy.
Williams-Sonoma climbed 1.3%, but Best Buy fell 2.6%.
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Trader Robert Finnerty Jr., right, works on the floor of the New
York Stock Exchange, Monday, Nov. 24, 2025. (AP Photo/Richard Drew)
 All told, the S&P 500 fell 36.46
points to 6,812.63. The Dow Jones Industrial Average dropped 427.09
to 47,289.33, and the Nasdaq composite slipped 89.76 to 23,275.92.
In stock markets abroad, indexes were mixed in Asia and Europe.
France’s CAC 40 slipped 0.3%, dragged down in part by a 5.8% loss
for Airbus.
The European aerospace giant said Monday that most of its fleet of
6,000 A320 passenger jets have received an update after a weekend
software glitch that could have affected flight controls. Travelers
faced minor disruptions as airlines scrambled to push the software
updates out after Airbus warned of the problem Friday.
In Japan, the Nikkei 225 tumbled 1.9% on worries about the
possibility of higher interest rates. Japan’s benchmark interest
rate has remained near zero for years in hopes of juicing the
economy. Now inflation is holding above the Bank of Japan’s target
of about 2%.
In the bond market, the yield on the 10-year Treasury rose to 4.09%
from 4.02% Friday.
It briefly slowed its ascent in the morning after a report showed
activity for U.S. manufacturers shrank by more last month than
economists expected.
Jobs are under pressure at manufacturers, and the majority in a
survey by the Institute for Supply Management said they’re still
focused more on managing headcount than on hiring. Several
manufacturers also said tariffs are continuing to make things
complicated.
“Conditions are more trying than during the coronavirus pandemic in
terms of supply chain uncertainty,” one manufacturer told the ISM.
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AP Business Writer Elaine Kurtenbach contributed.
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