US Stocks Ease as Crypto Selloff Intensifies and BOJ Signals Change

US stocks began December on a cautious note as renewed pressure from tumbling cryptocurrencies and rising bond yields weighed on sentiment. The shift came after the Bank of Japan signaled it may soon move toward tightening monetary policy an unexpected development that added fresh uncertainty to global markets.

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By 9:31 a.m. in New York, the S&P 500 was down 0.6%, while the tech-heavy Nasdaq 100 slipped 0.8%. Market volatility ticked modestly higher, with the Cboe Volatility Index holding near 18. Even the influential “Magnificent Seven” names were softer in early trading, with Meta Platforms Inc. and Nvidia Corp. each falling more than 1%.

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Cryptocurrency-linked stocks took a significant hit as Bitcoin slid toward $86,000, pulling major digital tokens lower alongside it. Shares of Coinbase Global Inc. and MARA Holdings Inc. dropped more than 5% each. Matt Maley, chief market strategist at Miller Tabak + Co., warned that Bitcoin’s slide could spill over into equities more broadly. “The renewed decline in Bitcoin could create some real problems for the stock market,” he wrote, noting that the token’s moves remain tightly tied to shifts in overall liquidity.

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Meanwhile, precious metals stocks provided a rare bright spot. US-listed silver miners advanced as silver extended Friday’s gains amid ongoing supply tightness. Gold miners were also broadly higher. In the energy sector, oil producers posted modest gains after crude prices ticked higher. The move followed a temporary halt in loading operations at a key pipeline transporting Kazakh crude to Russia’s Black Sea coast, after one of the system’s moorings was damaged in an attack.

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Looking ahead, traders are preparing for a busy stretch of economic data releases as the Federal Reserve’s next policy meeting approaches. Key reports on manufacturing activity, personal consumption (though based on older data), and November’s ADP private payrolls are all on deck this week. Each could influence how policymakers weigh inflation trends, labor-market conditions, and the overall trajectory of growth.

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Despite the risk-off tone on Monday, Wall Street’s broader outlook for equities remains upbeat. Strategists at RBC Capital Markets, led by Lori Calvasina, said they expect the S&P 500 to climb more than 10% for a fourth consecutive year making them the latest major firm to publish a bullish forecast for 2025 and beyond.

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Seasonal trends may also lend support. According to Sam Stovall, chief investment strategist at CFRA, December has historically been one of the strongest months for equities. Since 1990, the S&P 500 has delivered its second-best average monthly return during December, along with relatively low volatility and the highest probability of finishing the month in positive territory. Historically, mid-cap and small-cap indexes have also tended to outperform large-cap benchmarks during the final month of the year.

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That seasonal strength appears to be influencing traders already. Investors have been adding bullish positions in small-cap stocks even though the group has underperformed larger peers for much of the past year. The number of outstanding call options on the iShares Russell 2000 ETF the largest small-cap tracking fund has surged to its highest level since September relative to put-option interest. The imbalance signals confidence that the recent rebound in small caps could extend into year-end.

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Another factor shaping sentiment is anticipation around the Federal Reserve’s leadership transition. President Donald Trump said he has chosen his nominee for the next Fed chair, emphasizing that he expects the incoming leader to support interest-rate cuts. Investors are closely watching for clues on how the leadership change might influence monetary policy through 2025.

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In corporate developments, vaccine makers came under pressure after investment bank William Blair flagged reports of an internal FDA memo linking Covid-19 vaccines in younger people with fatal cases of myocarditis. The news spurred renewed volatility across the vaccine sector.

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Meanwhile, Barrick Mining Corp. is reportedly weighing an initial public offering of its North American gold operations. The potential move comes as the Canadian miner navigates a turbulent period marked by operational setbacks and leadership transitions. A standalone listing could help unlock value and streamline the company’s sprawling asset portfolio.

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On the technology front, Synopsys Inc. surged after Nvidia Corp. agreed to invest $2 billion in the chip-design software firm. The deal highlights Nvidia’s continued push deeper into semiconductor tools and infrastructure at a time when AI-related demand remains one of the market’s defining themes.

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With December now underway, investors are balancing short-term caution with longer-term optimism. Whether the broader market can overcome pressure from cryptocurrencies, rate worries, and geopolitical disruptions may determine how the year’s final stretch unfolds.

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