Stocks Climb as Bitcoin Gets Reprieve From Selling: Markets Wrap
(Bloomberg) — Wall Street resumed its advance after a brief pause, with dip buyers lifting stocks as cryptocurrencies staged a rebound in the wake of a rough start to December. Bonds and the dollar stabilized.
Equities saw mild gains, with the S&P 500 rising for the sixth time in seven trading days. Riskier corners of the market — which bore the brunt of the selling in the previous session — from small caps to the most-shorted companies and unprofitable tech bounced back.
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Following a plunge of as much as 8% on Monday, Bitcoin reclaimed its $89,000 mark. The largest token has fallen almost 30% since hitting a record in early October. The downturn accelerated when roughly $19 billion in leveraged bets were wiped out.
“There was a sense of calm across markets today, with cryptos finding some love after what has been a brutal last couple of weeks,” said Fawad Razaqzada at Forex.com. “The lack of any major news certainly played a part in the calmer tone.”
The S&P 500 rose to around 6,835. Nvidia Corp. led gains in tech megacaps. Boeing Co. rallied as the planemaker expects to generate cash again in 2026.
Short-dated Treasuries outperformed the rest of the curve, with two-year yields down one basis point to 3.52%. The dollar wavered.
Anyone looking to bet against US stocks this month would be wise to consider the strength of the American economy and ongoing enthusiasm around artificial intelligence.
That’s the view at 22V Research, where strategists say an increase in consumer spending and investments in AI are likely to support productivity, allowing firms to deliver the profits needed to power stocks higher.
“Being short here requires high confidence in a much weaker economic backdrop or a significant change in the outlook for AI capex,” according to strategists led by Dennis Debusschere.
Meantime, Barclays Plc strategists noted that S&P 500 implied moves ahead of Federal Reserve meetings have declined since early 2023, with realized moves hovering near zero recently. It’s a trend that underscores the fading influence of monetary policy, they said.
After cutting interest rates by more than a percentage point, Fed officials are now wondering where to stop – and finding there’s more disagreement than ever.
In the past year or so, prescriptions for where rates should end up have diverged by the most since at least 2012, when US central bankers started publishing their estimates. That’s feeding into an unusually public split over whether to deliver another cut next week, and what comes after that.
“Nothing is going to change our view that the Fed eases next week, but it is looking more like a hawkish cut,” said Andrew Brenner at NatAlliance Securities. “We can see at least three dissents next week.”
Corporate Highlights:
Michael Burry called Tesla Inc. shares “ridiculously overvalued” and said shareholder dilution is set to continue after the proposed $1 trillion pay package for co-founder Elon Musk, according to a Substack post. Cloud-computing provider Vultr is building a 50-megawatt cluster of Advanced Micro Devices Inc. artificial intelligence processors at a data center in Ohio, a move aimed at offering AI infrastructure at a lower cost. Boeing Co. expects to generate cash again in 2026, a significant reversal in the planemaker’s finances as it prepares to boost monthly production rates and pushes ahead with certification for the much-delayed 777X jetliner. Warner Bros. Discovery Inc. was fielding a second round of bids on Monday, including a mostly cash offer from Netflix Inc., in an auction that could wrap up in the coming days or weeks, according to people familiar with the discussions. Crypto exchange Kraken is acquiring a tokenized assets platform in a vote of confidence for stock trading tied to blockchains. Cloudflare Inc. climbed after Barclays launched coverage on the infrastructure software company with an overweight rating and a $235 price target. MongoDB Inc., a database software company, reported stronger-than-expected results. It also raised its full-year forecast. Six Flags Entertainment Corp. rallied after Truist Securities upgraded the theme park operator’s stock to buy from hold. Bank of Nova Scotia topped estimates on better-than-expected results at its capital-markets unit while forecasting faster growth next year in its core Canadian banking division. Novo Nordisk A/S is planning a large study of its next-generation obesity shot CagriSema in children, a sign the drugmaker is pressing forward with the compound despite disappointing results in other trials. ISS A/S slumped in Copenhagen amid concerns over the Danish company’s role in the renovation of a Hong Kong apartment fire where a deadly fire broke out on Nov. 26. TotalEnergies SE has emerged as the leading bidder to buy a stake in Galp Energia SGPS SA’s major oil discovery offshore Namibia, according to people familiar with the matter. Vale SA and Glencore Plc are considering a joint copper project in Canada as the two companies look to increase their exposure to a metal projected to be in short supply as the world electrifies. Glencore Plc’s ferrochrome unit in South Africa will shutter two plants and cut jobs because of soaring electricity prices, the latest blow to the country’s declining smelting industry. Samsung Electronics Co. unveiled its first so-called trifold smartphone, flaunting its engineering prowess in foldable devices even as the broader category has yet to catch on with mainstream consumers. Taiwanese prosecutors charged Tokyo Electron Ltd. for failing to prevent staff from allegedly stealing Taiwan Semiconductor Manufacturing Co. trade secrets, escalating a dispute involving two Asian linchpins of a chip industry increasingly vital to national and economic security. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.3% as of 9:58 a.m. New York time The Nasdaq 100 rose 0.7% The Dow Jones Industrial Average rose 0.1% The Stoxx Europe 600 was little changed The MSCI World Index rose 0.2% Bloomberg Magnificent 7 Total Return Index rose 0.5% The Russell 2000 Index rose 0.5% Most Short Rolling rose 1% GS Non Profitable Tech rose 1.8% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1617 The British pound was little changed at $1.3209 The Japanese yen fell 0.3% to 155.95 per dollar Cryptocurrencies
Bitcoin rose 3.1% to $89,108.29 Ether rose 3.6% to $2,893.27 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.10% Germany’s 10-year yield was little changed at 2.75% Britain’s 10-year yield was little changed at 4.49% The yield on 2-year Treasuries declined one basis point to 3.52% The yield on 30-year Treasuries advanced two basis points to 4.76% Commodities
West Texas Intermediate crude fell 1.6% to $58.35 a barrel Spot gold fell 0.3% to $4,217.95 an ounce ©2025 Bloomberg L.P.
