US stocks fell on Monday, snapping a five-day winning streak across the major indices as volatility from the cryptocurrency market spilled into equities.
The S&P 500 lost 0.53% to close at 6,812.63, the Nasdaq Composite slipped 0.38% to 23,275.92, and the Dow Jones Industrial Average dropped 427 points, or 0.9%, to 47,289.33.
Bitcoin slid around 6% to fall below $86,000 in its worst single session since March, extending a two-month drawdown. The decline dragged crypto-exposed stocks lower, with heavy selling across names such as Coinbase and Strategy.
Tech and AI trade mixed
Broadcom and Super Micro Computer retreated more than 4% and 1%, respectively, as profit-taking continued across parts of the artificial intelligence trade.
Synopsys bucked the trend, jumping after Nvidia announced a multibillion-dollar investment in the chip-design software group. Nvidia shares themselves firmed more than 1%, extending a stretch of resilience despite recent valuation concerns.
Retailers added some support to the market. Ulta and Walmart advanced as holiday shopping intensified, helping the State Street SPDR S&P Retail ETF post a five-day gain above 6%.
Recent strength meets renewed volatility
Monday’s pullback follows a strong previous week where the Dow and S&P 500 gained more than 3% and the Nasdaq rallied nearly 5%. But November was far from smooth.
The S&P 500 and Dow ended the month only marginally higher, while the Nasdaq slipped 1.5% to break a seven-month winning streak after an 8% mid-month drawdown tied to concerns over elevated AI valuations.
Despite the turbulence, seasonality remains supportive. Historically, the S&P 500 averages more than a 1% rise in December, making it one of the index’s strongest months.
Expectations of further US rate cuts are also helping to stabilise sentiment. Traders are currently pricing in an 87.6% chance of a quarter-point cut next week, even as some officials warn that inflation risks remain.
Local outlook
Australian shares are set to open slightly higher, with ASX futures up 6 points, or 0.1%, to 8589. The local session will be shaped by a major run of economic data, including Australia’s trade balance on Tuesday, followed by quarterly GDP on Wednesday. In corporate news, Bank of Queensland holds its annual general meeting, and Collins Foods will release its half-year results.
