Wall Street ends lower as yields climb; crypto stocks drop
U.S. stocks closed modestly lower on Monday, weighed down by a jump in Treasury yields and economic data that showed tariffs remained a drag on the manufacturing sector, as investors looked toward the Federal Reserve's policy announcement next week.
The Institute for Supply Management's survey showed U.S. manufacturing contracted for the ninth straight month in November, as factories dealt with slumping orders and higher prices as the effect from tariffs lingered.
Markets have largely priced in a rate cut from the Fed at the conclusion of its two-day policy meeting on December 10. They are pricing in an 85.4% chance of a 25 basis-point cut, according to CME's FedWatch Tool
"The market actually is still obviously earnings-driven, we went through earnings season, but now it's the Fed," said Joe Saluzzi, partner, co-founder and head of Equity Market Structure Research and co-head of Equity Trading at Themis Trading in Chatham, New Jersey.
"I see no reason why the uptrend doesn't continue, at least, not as quickly, but maybe more of a grind up to the end of the year."
According to preliminary data, the S&P 500 (.SPX), opens new tab lost 34.44 points, or 0.50%, to end at 6,814.65 points, while the Nasdaq Composite (.IXIC), opens new tab lost 88.92 points, or 0.38%, to 23,276.76. The Dow Jones Industrial Average (.DJI), opens new tab fell 411.46 points, or 0.86%, to 47,304.96.
While many policymakers have struck a cautious tone, dovish signals from a few key voting members in recent weeks, along with reports that White House economic adviser Kevin Hassett is a leading contender to succeed Fed Chair Jerome Powell, have heightened expectations for further monetary easing in the months ahead.
Powell is scheduled to speak after the market close but is unlikely to address monetary policy due to the proximity to the central bank's policy meeting.
Source: Reuters.com
