Stock market today trading opened December on a sour note, with major U.S. indexes slipping and bitcoin tumbling in a broad risk-off shift after a strong late‑November rebound.
Key Points
Tech shares led the retreat on Wall Street, while the world’s largest cryptocurrency dropped nearly 6%, signaling that investors were pulling back from higher‑risk assets just as a packed week of economic data gets underway and the Federal Reserve enters its pre‑meeting blackout.
Risk-Off Tone Hits Stock Market Today to Start December
On Monday, the Nasdaq Composite fell by around 1%, while the S&P 500 dropped roughly 0.7%. The Dow Jones Industrial Average slid about 0.6%, giving back part of its recent advance after the blue‑chip benchmark logged a five‑day winning streak through Friday.
In intraday trading, the Nasdaq was recently quoted near 23,244, down more than 120 points, as the stock market today struggled to maintain the momentum that carried equities higher into the end of November.
The pullback marked a pause in what had been a robust rebound for U.S. stocks, fueled by growing hopes that borrowing costs could soon begin to ease. With the new month underway, investors appeared more cautious, reassessing both economic risks and the policy outlook.
Tech Megacaps Drag Indexes Lower
Big technology and growth names, which had powered much of the year’s gains, were the main weight on the stock market today.
All of the so‑called “Magnificent Seven” megacap stocks, with the exception of Amazon, traded lower. Nvidia, Meta and Tesla each slipped by about 1%, helping drive the broader tech‑heavy Nasdaq into the red.
These large, index‑dominating names have been particularly sensitive to shifts in interest‑rate expectations and risk appetite. Their drop on the first day of December suggested that some investors were taking profits after the recent run‑up or moving to the sidelines ahead of key data.
The weakness in major tech shares also contributed to declines in the S&P 500, which has a heavy weighting toward megacap growth companies, and added to the downbeat tone for the stock market today.
Bitcoin Plunge Deepens Risk-Off Mood
Adding to the sense of caution, bitcoin fell sharply, losing nearly 6% at one point. The token dropped below $85,000 on Monday morning, extending a slide that has been building for several weeks, before rebounding to trade back above that level.
The move underscored the risk‑off mood across markets. Crypto assets, which tend to be among the first to feel the impact when investors cut exposure to speculative trades, have been under pressure as uncertainty about the economic outlook and policy path has persisted.
Bitcoin’s latest decline ran parallel to the sell‑off in tech shares and highlighted how both digital and traditional risk assets were under strain as the stock market today adjusted to a more cautious stance.
Santa Claus Rally in Doubt as Uncertainty Lingers
December has often been one of the stronger months for equities, with many traders watching for a so‑called “Santa Claus rally” as the year winds down. This year, strategists caution that the typical seasonal pattern may not hold.
Analysts point to a string of events that have kept nerves on edge throughout 2025, including President Donald Trump’s push for new tariffs, which has injected fresh uncertainty into the global trade outlook. Those cross‑currents have already caused stocks to diverge from historical seasonal trends for much of the year.
Against that backdrop, the weak tone in the stock market today has added to questions about whether the usual late‑year lift will materialize or whether volatility will remain elevated instead.
Fed Rate Cut Hopes Face Data Test
Underlying the moves in the stock market today is continued focus on the Federal Reserve and the path of interest rates.
Despite Monday’s pullback, markets are still pricing in a strong chance that policymakers will cut rates at their upcoming meeting. More than 85% of bets currently point to a quarter‑percentage‑point reduction at next week’s gathering, according to futures‑based gauges of expectations.
The rebound in stocks during Thanksgiving week was driven in large part by those rising hopes for easier policy and lower borrowing costs. Supportive comments from several Fed officials added fuel to that rally.
However, the central bank has now entered its customary communications blackout ahead of the meeting, meaning officials will not provide further guidance until after the decision is announced. That has shifted attention back to incoming data, which is returning to a normal schedule after delays tied to the recent government shutdown.
For investors following the stock market today, this data‑dependent phase increases the potential for day‑to‑day swings as each release is parsed for clues about the Fed’s next move.
Key Economic Reports Set the Tone for the Week
The first major report on the calendar is a reading on November manufacturing activity, due on Monday. That will be followed later in the week by new figures on the services sector and the jobs market.
While each of these releases can influence sentiment, the data highlight arrives Friday, when the delayed September Personal Consumption Expenditures (PCE) index is scheduled for publication. The PCE measure is the Fed’s preferred gauge of inflation and will be closely watched as a guide to underlying price pressures.
If the PCE data show that inflation continues to ease, it could reinforce expectations for a rate cut and potentially provide support for the stock market today and in the days ahead. A hotter‑than‑expected reading, by contrast, might cast doubt on the timing or pace of any easing, adding to volatility.
Leadership Uncertainty at the Fed Adds Another Wild Card
Beyond the immediate policy decision, markets are also watching for possible changes at the top of the central bank. After a year marked by repeated clashes with Fed Chair Jerome Powell, President Trump has signaled that leadership could soon shift.
On Sunday, Trump said he has decided on a candidate to replace Powell, though he did not name the individual. White House economic adviser Kevin Hassett is widely viewed as a leading contender.
Speculation over who will ultimately lead the Fed — and what that might mean for future policy — has become another factor for traders to consider as they interpret the moves in the stock market today. A change at the helm could affect how aggressively the central bank approaches interest‑rate cuts, inflation management and financial‑market communication over the coming years.
What Monday’s Weak Start Could Mean Next
The downbeat opening for the stock market today does not, on its own, determine how the rest of December will play out. But it does highlight the cross‑currents facing investors at the start of the month:
- Tech megacaps that have powered past gains are now under pressure.
- Bitcoin and other risk assets are sliding, signaling a more cautious tone.
- The Fed is silent ahead of a critical meeting, leaving economic data to drive expectations.
- Uncertainty around tariffs and future central‑bank leadership continues to cloud the outlook.
As the week progresses, traders will be watching whether incoming data support the view of a quarter‑point rate cut and how that interacts with the inflation picture. The combination of those factors will help determine whether Monday’s losses are a brief stumble in an otherwise resilient market or the beginning of a more extended period of volatility for the stock market today.
