US Stocks Halt Winning Run As Bitcoin Selloff Deepens: Markets Wrap

The start of a historically strong month on Wall Street saw stocks sliding as traders shunned riskier corners of the market amid a selloff in cryptocurrencies. A rout in Japanese debt rippled through global bonds, causing a ripple effect in the Indian stock market as well.

Caution Prevails in the Market

Caution prevailed as a rally that drove the S&P 500 to its longest streak of monthly gains since 2021 took a breather. A gauge of smaller companies dropped almost 1%. Crypto-linked shares sank sharply, with Bitcoin tumbling 7% to below $85,000. This has led to a decrease in investor appetite for risk, with many opting for safer investments such as gold and other precious metals.

Impact on Indian Markets

Despite the reduced appetite for risk, Treasuries kicked off the week on the back foot as Japan’s benchmark yields hit the highest since 2008 on signs the nation will boost interest rates. This has caused a stir in the Indian economy, with many investors opting for a wait-and-watch approach. The Nifty levels and Sensex news will be closely watched in the coming days to gauge the impact of the global market trends on Indian markets.

US Factory Activity Shrinks

US factory activity shrank in November by the most in four months as orders weakened. This week’s data include a much-delayed inflation number for September and a preliminary reading of consumer confidence in December due Friday. The US economy has been showing signs of slowdown, and this data will be crucial in determining the future course of action for investors.

Market Moves

The S&P 500 fell to around 6,830. Most tech megacaps slipped, though Nvidia Corp. bounced after Friday’s rout. Energy producers joined a rally in oil. The yield on 10-year Treasuries rose eight basis points to 4.09%. Merck & Co Inc. is seeking to raise as much as $8 billion through a corporate bond sale. The dollar slid.

Some of the main moves in markets:

• The S&P 500 fell 0.3% as of 11 a.m. New York time
• The Nasdaq 100 fell 0.3%
• The Dow Jones Industrial Average fell 0.5%
• The Stoxx Europe 600 fell 0.2%
• The MSCI World Index fell 0.3%
• Bloomberg Magnificent 7 Total Return Index fell 0.1%
• The Russell 2000 Index fell 0.7%
• The Bloomberg Dollar Spot Index fell 0.2%
• The euro rose 0.3% to $1.1630
• The British pound rose 0.1% to $1.3252
• The Japanese yen rose 0.7% to 155.11 per dollar
• Bitcoin fell 7.2% to $84,645.85
• Ether fell 9.2% to $2,743.88
• The yield on 10-year Treasuries advanced eight basis points to 4.09%
• Germany’s 10-year yield advanced six basis points to 2.75%
• Britain’s 10-year yield advanced four basis points to 4.48%
• The yield on 2-year Treasuries advanced four basis points to 3.53%
• The yield on 30-year Treasuries advanced eight basis points to 4.74%
• West Texas Intermediate crude rose 1.5% to $59.40 a barrel
• Spot gold fell 0.2% to $4,232.52 an ounce

Conclusion

In conclusion, the US stock market has halted its winning run due to a selloff in cryptocurrencies and a rout in Japanese debt. This has caused a ripple effect in the global markets, including the Indian stock market. Investors are advised to keep a close watch on the market trends and make informed decisions based on their investment goals and risk appetite. For more information on investing in the stock market, visit our website.