A shaky start to the month highlights fading AI momentum, fresh crypto volatility, and lingering concerns about overstretched valuations.
U.S. equities retreated on Monday as Wall Street followed crypto markets lower, marking a jittery start to December after a turbulent November. The S&P 500 fell 0.6%, the Nasdaq dropped 0.8%, and the Dow declined 275 points, or 0.6%, as investors stepped back from tech and risk assets.
The standout weakness came from the artificial intelligence trade. Nvidia and AMD slipped more than 1%, while Broadcom sank over 3%, signaling renewed pressure on high-growth semiconductor names that dominated markets earlier this year. One bright spot emerged: Synopsys surged after Nvidia disclosed an investment in the chip-design software company, offering a rare counterweight to the sector’s pullback.
Crypto added fresh turbulence. Bitcoin fell more than 5% to below $87,000, extending a decline that began late last month when the token dropped under $90,000 for the first time since April. Its continued struggle to regain momentum has amplified risk-off sentiment across tech and speculative assets.
The downturn comes despite strong gains last week, when the Dow and S&P 500 rallied more than 3% and the Nasdaq jumped nearly 5%. November, however, was far from smooth: the Nasdaq ended the month down 1.5%, snapping a seven-month winning streak, after plunging nearly 8% mid-month amid mounting concerns over inflated AI valuations.
Still, historical patterns favor optimism. December has delivered an average S&P 500 gain of more than 1% since 1950, making it one of the strongest months of the year, according to the Stock Trader’s Almanac. Fundstrat technical strategist Mark Newton echoed that sentiment, saying last week’s rebound in market breadth and rising expectations for a December Fed rate cut could support a positive month for equities.
Whether that seasonal tailwind is enough to counter renewed volatility in tech and crypto now becomes the central question for investors navigating the final stretch of 2025.
