Stock Market Today - Nasdaq, S&P 500, and Dow Fall as Bitcoin Crashes, Oil Rebounds, and NVDA Stock Slide

Stock Market Today - Global Markets Open December With Broad Selloff as Risk Appetite Reverses

December began with investors retreating from equities, crypto, and high-beta assets following a volatile November. The Nasdaq 100 futures (NQ00) sank 0.9% to 25,250.50, the S&P 500 futures (ES00) lost 0.66% to 6,814.50, and Dow Jones Industrial Average futures (YM00) declined 0.43% to 47,537.00, signaling a weak start to the month. After closing November with modest gains—S&P 500 up 0.1%, Dow up 0.3%, and Nasdaq down 1.5%—the market’s record-setting streak of seven consecutive positive months shows signs of fatigue. The shift toward defensive positioning comes as traders reassess Federal Reserve policy, political risk from the White House, and early signs of tightening financial conditions globally.

Wall Street’s Mega-Cap Leaders Retreat as AI Euphoria Cools

The Magnificent Seven—Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA)—were at the center of the selloff. Nvidia fell 1.8% to $177.00, extending declines following China’s launch of DeepSeek, an open-source AI competitor that investors believe could intensify price competition in cloud GPU markets. Apple slipped 0.47% to $278.85, while Microsoft eased 1.34% to $492.01. Alphabet traded around $320.18, off its recent high, while Amazon and Meta Platforms lost between 1–2%, pressured by valuation concerns as 2025’s AI-driven rally shows exhaustion. Tesla continued to underperform, trading near $424.20, down 1.39%, as European sales fell 59% year-over-year in Sweden amid union disputes and declining brand sentiment. Analysts note that Tesla’s share of the European EV market has slipped below 14%, its lowest since 2022, as local rivals Volkswagen and BYD gain ground.

Crypto Markets Plunge, Triggering Contagion in Crypto-Linked Stocks

Cryptocurrencies suffered one of their sharpest one-day selloffs in months. Bitcoin (BTC-USD) dropped 5.9% to $85,948, while Ethereum (ETH-USD) fell 5.8% to $2,836 and Solana (SOL-USD) retreated below $120. The decline followed renewed warnings from the People’s Bank of China about illegal digital asset trading and leveraged activity. The crash rippled into equity markets, hammering major crypto-exposed firms. MicroStrategy (NASDAQ: MSTR) slid 4.7%, Coinbase Global (NASDAQ: COIN) plunged 6.2%, and Robinhood Markets (NASDAQ: HOOD) dropped 3.4%, while Marathon Digital (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT) both tumbled over 7%.
Institutional data from CoinGlass showed over $2.5 billion in leveraged positions liquidated in 24 hours, primarily across perpetual futures on Binance and OKX. Despite this correction, Bitcoin remains up over 110% year-to-date, though volatility at the start of December underscores fragile market confidence after a strong third quarter. The VIX volatility index jumped 11.07% to 18.16, marking its highest reading in three weeks as traders hedge against potential year-end turbulence.

Coupang (NYSE: CPNG) Plunges After Massive Data Breach Hits 33.7 Million Accounts

E-commerce giant Coupang (NYSE: CPNG) sank 9% to $28.16 after confirming a cyberattack that exposed personal data from nearly 33.7 million users, or 95% of its customer base. CEO Park Dae-jun publicly apologized, calling the breach “deeply regrettable” and pledging cooperation with South Korean regulators. Early investigations reveal that a former employee of Chinese origin accessed customer information in June before leaving the country. The breach included names, email addresses, phone numbers, and delivery data. Despite the selloff, Coupang remains up 26% year-to-date, driven by expansion in logistics and cloud services. Still, cybersecurity failures could erode investor confidence and invite stricter data compliance standards across Asian e-commerce firms.

Japanese Markets Rattle Global Bonds as Bank of Japan Signals Rate Hike

Asian markets mirrored the risk-off tone after Bank of Japan Governor Kazuo Ueda hinted that the central bank will “consider the pros and cons” of a rate hike at its December 18–19 meeting. The Nikkei 225 plunged 1.89% to 49,303.28, while yields on 10-year Japanese Government Bonds surged 7.2 basis points to 1.879%, the highest since June 2008. The 2-year JGB yield also spiked to 1.021%, indicating market preparation for policy tightening. The Japanese yen (USDJPY) strengthened 0.89% to 154.78, its sharpest daily rise in a month, pressuring exporters. In response, the U.S. 10-year Treasury yield (BX:TMUBMUSD10Y) rose 3.9 basis points to 4.057%, while the Dollar Index (DXY) dipped 0.35% to 96.54, reflecting cautious optimism that the Fed may continue rate cuts into early 2026.

Oil Rebounds as OPEC+ Holds Production Steady; Geopolitical Risk Returns

Oil markets stabilized after the OPEC+ coalition voted to maintain existing production levels. WTI crude (CL=F) climbed 0.96% to $59.11 per barrel, while Brent crude (BZ=F) advanced 1.7% to $63.44, ending a four-week losing streak. The decision coincided with renewed geopolitical tension after Ukrainian drone strikes damaged two Russian tankers in the Black Sea and disrupted operations at the Caspian Pipeline Consortium, which moves 1% of global oil supply.
Analysts said the move signals a strategic pivot by OPEC+ to preserve prices rather than regain market share. “OPEC’s focus is shifting from volume to value,” said Stephen Innes of SPI Asset Management. Despite this, Brent remains down 15% year-to-date, pressured by weak global demand and record U.S. shale output, which has exceeded 13.3 million barrels per day.

Gold (XAU/USD) Hits Multi-Month High as Investors Flee Risk Assets

Safe-haven flows boosted precious metals as investors sought protection from equities and crypto volatility. Gold (XAU/USD) rose 0.73% to $4,285.80, its highest since August, while silver (XAG/USD) advanced 1.1% to $31.42. The rally was fueled by lower yields, a softening dollar, and anticipation of further Fed rate cuts. The U.S. Dollar Index (DXY) fell 0.35% to 96.54, amplifying gold’s relative strength. Institutional flows into gold ETFs rose for the third consecutive week, led by SPDR Gold Shares (NYSEARCA: GLD), which added $780 million in new assets last week. Analysts see $4,350 as the next resistance level if macro uncertainty persists.

Trump Eyes Kevin Hassett as Potential Fed Chair Successor

Political developments added another layer of uncertainty. President Donald Trump announced he has made his decision on a successor to Federal Reserve Chair Jerome Powell, with markets overwhelmingly favoring Kevin Hassett, Director of the National Economic Council. On Kalshi, Hassett’s odds jumped from 55% to 76%, while Polymarket placed his likelihood at 73%. Hassett’s nomination could signal an accelerated easing cycle and closer coordination between the Fed and the White House on employment policy.
Markets now price an 87.6% probability of a 25-basis-point rate cut at the December 10 Fed meeting, according to CME FedWatch data. If confirmed, it would mark the third consecutive reduction since September, extending the Fed’s transition toward pro-growth policy as inflation stabilizes near 2.3% year-over-year.

Upcoming Earnings and Key Data: Salesforce, Macy’s, and Inflation Reports

Attention now turns to corporate earnings and macro indicators. Salesforce (NYSE: CRM) reports on Wednesday, with analysts projecting revenue of $9.05 billion and EPS of $2.38, driven by growth in AI-integrated software solutions. Macy’s (NYSE: M) and Dollar General (NYSE: DG) will also release results, offering insight into consumer health after Barclays data showed Black Friday transactions surged 62% year-over-year, the strongest retail day since 2019.
On the data front, the ISM Manufacturing Index and S&P Global PMI are expected Monday, providing updates on industrial momentum. Friday’s release of the PCE inflation index, the Fed’s preferred measure, will be a key input for policymakers and could confirm whether disinflation remains intact into early 2026.

Analysts Maintain Cautious Optimism, Citing Technical Strength and Breadth Improvement

Despite volatility, several major institutions remain constructive on U.S. equities. RBC Capital Markets raised its 12-month S&P 500 target to 7,750, implying 14% upside from current levels near 6,849. Evercore ISI highlighted Consumer Staples and Consumer Discretionary as likely outperformers during early Fed easing phases. Bank of America reported stronger market breadth, with the NYSE advance-decline line rising above resistance and fewer S&P 500 stocks hitting 52-week lows. Historically, when the S&P 500 ends November higher in the first year of a U.S. presidential cycle, December delivers gains 13 out of 13 times, averaging +2.03%.

European and UK Markets Echo the U.S. Caution as Growth Fears Linger

Across Europe, the STOXX 600 declined 0.54% to 573.29, the CAC 40 fell 0.7%, and the DAX lost 1.3%, pressured by renewed weakness in industrials. The FTSE 100 edged 0.18% lower as Chancellor Rachel Reeves defended her budget amid criticism over fiscal transparency. The GBP/USD pair hovered around 1.32, while the euro (EUR/USD) traded near 1.09. Asian markets reflected mixed sentiment, with the Shanghai Composite up 0.65% to 3,914.01, supported by better-than-expected manufacturing PMI readings. However, global risk aversion remained dominant as investors awaited confirmation of central bank policies in the U.S. and Japan.

Final Market Assessment: Tactical Buy Within Macro Uncertainty

The market’s early-December pullback reflects a temporary reset rather than a structural reversal. With inflation moderating, Treasury yields stable, and corporate earnings resilient, U.S. equities remain fundamentally supported. The S&P 500’s current zone near 6,800–6,850 offers technical support.
Strategically, the outlook is “Buy selectively”, favoring Consumer Discretionary, Energy, and Precious Metals sectors. Gold (XAU/USD) and energy equities remain strong hedges against inflation and policy risk. Conversely, overextended AI leaders such as NVDA, TSLA, and MSFT warrant caution amid decelerating growth expectations.
In the broader picture, markets remain in a late-cycle phase marked by slowing momentum but improving liquidity. December’s direction will depend on Fed communication, economic data, and the confirmation of Hassett’s potential appointment, which could shape the tone for Q1 2026 risk sentiment.

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