Stocks finish lower, US yields rise as investors take breather to assess Fed moves
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 1, 2025. REUTERS/Brendan McDermid
NEW YORK, Dec 1 : Global shares fell and U.S. Treasury yields rose on Monday as investors took a breather following five straight sessions of gains and ahead of key economic data that could support bets on Federal Reserve interest rate cuts.
Equities on Wall Street finished lower, with utilities, healthcare and industrial stocks leading losses. Energy stocks were the top gainers as Brent crude prices settled up more than 1 per cent.
The Dow Jones Industrial Average fell 0.90 per cent, the S&P 500 slipped 0.53 per cent, and the Nasdaq Composite dropped 0.38 per cent. All three indexes had finished higher in the prior five trading days.
European stocks slipped, with a drop in defense stocks helping fuel weakness. The pan-European STOXX 600 index fell 0.20 per cent.
The MSCI World Equity Index was down 0.40 per cent on the day following five consecutive sessions of gains.
"The bull argument, both technically and fundamentally, is as strong as it has been in some time, while the bears are reliant on AI and valuation scepticism," said Nationwide Chief Market Strategist Mark Hackett.
U.S. Treasury yields rose across the board. The yield on benchmark U.S. 10-year notes rose 7.3 basis points to 4.092 per cent. The 2-year note yield, which typically moves in step with Fed rate expectations, rose 4.3 basis points to 3.535 per cent.
"The modest pullback today would not be unexpected, but it's more of a pressure release valve following the rally than a sign of stress," Hackett added.
Data on Monday showed U.S. manufacturing contracted for the ninth straight month in November as the drag from import tariffs persisted. Other economic data including the closely watched Personal Consumption Expenditures Price Index are due later this week. The Fed will hold its next policy meeting on December 9 and 10.
Bank of Japan Governor Kazuo Ueda said the central bank will consider the "pros and cons" of raising rates at its next policy meeting, causing traders to sharply increase their rate-hike bets.
The Japanese yen strengthened 0.47 per cent against the greenback to 155.45 per dollar. The euro was up 0.13 per cent at $1.161.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.04 per cent to 99.40.
Bitcoin was down 5.49 per cent at $86,172.03, extending losses and putting bitcoin-buying companies under pressure. Gold hit its highest level in six weeks, driven by expectations of U.S. rate cuts, and was last at $4,239.69, up 0.22 per cent.
"The rate cut expectations have jumped up significantly in the past couple of weeks, although much of it is priced for next week," said Wasif Latif, chief investment officer at Samarya Partners. "Today's drop could be a combination of a deleveraging from crypto and risk assets tied to the facts that the rate cuts are priced and people are taking some profits."
