S&P 500 Rebound Wanes as Big Tech Loses Steam: Markets Wrap
(Bloomberg) — Wall Street’s cautious bounce faded quickly as some tech megacaps lost steam, overshadowing a rally in cryptocurrencies in the wake of a rough start to December. Bonds and the dollar stabilized.
The S&P 500 was little changed, with 300 shares falling. A sense of caution prevailed after a report that OpenAI’s Sam Altman is redirecting internal resources to speed up improvements to ChatGPT, declaring a “code red” situation that will delay work on other initiatives. Tesla Inc. led losses in megacaps as Michael Burry called the shares “ridiculously overvalued.”
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Following a plunge of as much as 8% on Monday, Bitcoin reclaimed its $90,000 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.
The S&P 500 hovered near 6,820. Tesla lost 1.8%. 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 two basis points to 3.51%. The dollar wavered.
Read: SEC Chief Wants to Boost IPOs by Easing Rules for Small Firms
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. Analog chipmaker SiTime Corp., which specializes in chips that keep circuits in sync inside data centers, is in talks to acquire Renesas Electronics Corp.’s timing unit, according to people familiar with the matter. 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. Laurentian Bank of Canada is set to become the latest small Canadian bank to exit the market after reaching an agreement to sell itself to Fairstone Bank for C$1.9 billion ($1.4 billion) while hiving off its retail banking unit to focus on commercial lending. 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. 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 was little changed as of 11:34 a.m. New York time The Nasdaq 100 rose 0.2% The Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 was little changed The MSCI World Index was little changed Bloomberg Magnificent 7 Total Return Index was little changed The Russell 2000 Index was little changed Most Short Rolling fell 0.4% GS Non Profitable Tech rose 0.9% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1608 The British pound fell 0.2% to $1.3192 The Japanese yen fell 0.2% to 155.81 per dollar Cryptocurrencies
Bitcoin rose 4.7% to $90,472.56 Ether rose 7.2% to $2,994.8 Bonds
The yield on 10-year Treasuries was little changed at 4.09% Germany’s 10-year yield was little changed at 2.75% Britain’s 10-year yield was little changed at 4.48% The yield on 2-year Treasuries declined two basis points to 3.51% The yield on 30-year Treasuries advanced one basis point to 4.75% Commodities
West Texas Intermediate crude fell 0.5% to $59.01 a barrel Spot gold fell 1.2% to $4,182.39 an ounce ©2025 Bloomberg L.P.
