A pause in the stock rally as the cryptocurrency world is hit – US Market Wrap

Stocks fell at the start of a historically robust month on Wall Street as traders avoided riskier markets amid a cryptocurrency selloff. A rout in Japanese debt reverberated throughout global bonds.
Caution reigned following a rally that propelled the S&P 500 index to its longest monthly winning run since 2021. The Russell 2000 index of small-cap stocks fell by more than 1%. Nearly $1 billion in leveraged crypto investments were liquidated during a rapid price drop that fueled a broad sector decline. Bitcoin fell to around $85,000.
Prior to next week’s rate decision, Fed officials will receive a dated reading on their preferred inflation indicator. The report, due Friday, is expected to reveal that inflationary pressures remain moderate but sticky. However, when policymakers meet on December 9th-10th, the debate will primarily revolve around the job market.
The S&P 500 momentarily dropped below 6,800 before closing marginally higher. Megacaps were mixed, with Alphabet dropping and Nvidia rising following Friday’s rout. Energy producers have joined the oil price rally.
The yield on 10-year Treasuries increased eight basis points to 4.09%. The dollar fluctuated.