US Market News Digest for December 1

[Ben Graham]

S&P 500 and Nasdaq 100 enter correction following recent gains

The S&P 500 and Nasdaq 100 indices started the week with declines following a strong rally last week. Investors are cautiously assessing the situation ahead of a series of key macroeconomic reports, including data on the labor market and inflation. Overall market sentiment has become more subdued, with participants opting to take some profits amid fears of potential overvaluation in high-tech stocks. Despite recent gains, uncertainty persists regarding the Federal Reserve's next steps, which is also putting pressure on the indices.

At the same time, futures for American indices are also showing declines, reflecting growing concerns among traders and asset managers. The market is becoming more sensitive to any hints of changes in economic policy or revisions to interest rate forecasts. This moderate pullback indicates investors' desire to shift into safe-haven assets before clear fundamental indicators emerge. Follow the link for more datails.

S&P 500 partially recovers, Nasdaq notches first monthly loss since March

The S&P 500 managed to partially offset its autumn losses and closed November in the green, demonstrating the market's ability to stabilize after volatile periods. The improvement in dynamics is associated with expectations of a more accommodating approach from the Federal Reserve. Investors increasingly believe that the tightening cycle is coming to an end, which fosters interest in riskier assets. Market support is also derived from statistical data indicating a slowdown in inflationary pressures.

At the same time, the Nasdaq Composite closed the month in the red, notching its first decline since March, highlighting selective weakness in the tech sector. A rotation of capital into more stable sectors reflects market participants' desire to balance risks following the rapid rise in stocks related to AI and innovative technologies. Despite this temporary decline, market prospects remain cautiously positive due to high liquidity and expectations of a soft monetary policy. Follow the link for more datails.

Increased volatility in crypto market: Bitcoin and altcoins come under pressure

The cryptocurrency market is facing a significant sell-off, during which Bitcoin and most altcoins have experienced sharp declines. Investor sentiment has been affected by a worsening news background: the downgrade of the USDT stablecoin's credit rating has raised concerns about the sustainability of liquidity in the market. This event has undermined participant confidence and triggered capital outflows, especially from short-term speculators.

The situation was further exacerbated by warnings from the People's Bank of China regarding the risks associated with crypto assets. The regulator once again drew attention to the volatility of digital currencies and potential threats to the financial system, further cooling investor interest. The market continues to experience a lack of buyers, with sellers dominating trading volumes, intensifying the downward trend. Analysts note that stabilizing prices will require a rise in confidence and new positive drivers. Follow the link for more details.

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