A historically strong month for stocks is starting on a bad note, with cryptocurrencies leading the way. Bitcoin fell more than 5% and fell below $90,000, a key level that traders are watching. Stock prices followed suit, with futures suggesting a lower opening price. Contracts tied to the Dow Jones Industrial Average fell more than 200 points, while contracts tied to the S&P 500 and Nasdaq 100 fell 0.7% and 0.9%, respectively. Other indicators also point to a clear risk-off start to December. Gold futures rose about 1% to nearly $4,300 an ounce. Precious metals are often seen as a safe haven during market turbulence. The CBOE Volatility Index (VIX), also known as Wall Street’s “fear gauge,” rose to around 18. BTC.CM= @SP.1 5D Mountain Bitcoin and S&P 500 Futures 5-Day Chart “What’s happening this morning? Stocks are entering the final month of the year under some pressure as cryptocurrencies plummet (Bitcoin prices are down nearly 5% by this morning). (The Bank of Japan) has withdrawn further hints of rate hikes later in the month, and China’s PMIs are below expectations,” wrote Adam Crisafulli of Vital Knowledge. This kind of volatility is nothing new for traders, and it occurred during a roller-coaster November. The S&P 500 rose modestly during the month, but was under pressure most of the time as high valuations for artificial intelligence held back the broader market. That said, Wall Street regained some momentum last week with a strong performance to close out November. The S&P 500 rose 3.7% last week, its biggest weekly gain since May. Seasonal factors are also on Wall Street’s side. Based on data dating back to 1950, the S&P 500 index rose more than 1% on average in December, making it the third-strongest month of the year, according to the Stock Traders Almanac.
