Markets Stumble: Dow, S&P 500, Nasdaq Kick Off December With a Slide as Bitcoin Plummets
The highly anticipated final trading month of the year kicked off on a distinctly sour note, as major U.S. stock indices closed lower and the crypto market saw a fresh, steep selloff. December 1, 2025, delivered a swift dose of “risk-off” sentiment, wiping away some of the solid gains seen during the holiday-shortened trading week prior. The retreat signals a cautious, nervous atmosphere on Wall Street as traders weigh global monetary policy shifts and upcoming economic data.
Wall Street Indexes Turn Red
All three major benchmarks ended the first Monday of the month in the red, with the tech-heavy Nasdaq Composite feeling the biggest pinch. The blue-chip Dow Jones Industrial Average and the benchmark S&P 500 also registered declines, as investors pulled back from riskier assets. The Nasdaq fell roughly 0.4% on the day, while the S&P 500 and the Dow each dipped around 0.2% to 0.7%, reflecting a broad-based unease that spread across sectors.
The selling pressure was particularly concentrated in technology and growth stocks, a common sign of investors becoming more risk-averse. This was evident in the performance of companies with ties to the cryptocurrency sector, such as Coinbase and Robinhood, which saw their shares drop significantly as the crypto market unraveled.
The Crypto Carnage Continues
The drama was perhaps most pronounced in the digital asset space, where Bitcoin saw a brutal start to the month. The world’s largest cryptocurrency slid sharply, tumbling as much as 7% to trade below the $85,000 mark in morning trading. This steep drop extends a choppy period for Bitcoin, which has lost a significant portion of its value since hitting an all-time high of over $126,000 back in early October.
The sudden and sharp selloff in Bitcoin dragged down other major tokens as well. Ethereum and Solana followed suit, with drops of around 7% and 8% respectively, bringing fresh momentum to a broader crypto market selloff.
The Global Catalyst: Central Banks in Focus
What exactly triggered this sudden, rocky start to December? The primary catalyst appears to be a notable shift in global central bank rhetoric. Comments from the Bank of Japan’s Governor Kazuo Ueda hinted at the clearest possibility yet of an interest rate hike at their upcoming policy meeting. This hawkish stance out of Tokyo unsettled markets, as higher interest rates abroad tend to prompt investors to seek safer havens, putting immediate pressure on global risk assets, including stocks and cryptocurrencies.
Adding to the uncertainty is the ever-present anticipation surrounding the U.S. Federal Reserve. While the market is widely pricing in a potential interest rate cut at the Fed’s decision next week, cautious investors are nervous that policymakers could couple the cut with what’s known as “hawkish forward guidance.” This essentially means the Fed could signal that future rate cuts may be slower or fewer than currently expected, a move that would temper risk-taking and keep volatility high. In the short term, this wait-and-see attitude, combined with the pressure from the Bank of Japan, has made for a decidedly difficult start to the final trading month of 2025.
