The stock market faced a broad-based retreat to start December as a sharp sell-off across Bitcoin and other cryptocurrencies weighed on sentiment, sending the S&P 500 (-0.5%), Nasdaq Composite (-0.4%), and DJIA (-0.9%) lower. 

Stocks steadily rebounded from the opening lows, with the S&P 500 and Nasdaq Composite nearly breaching their flatlines as the information technology sector (+0.1%) recovered from an early 1.3% loss. 

NVIDIA (NVDA 179.92, +2.92, +1.65%) was a standout across the mega-cap stocks, trading higher after announcing a strategic partnership with Synopsys (SNPS 438.29, +20.28, +4.85%) in which the companies will advance agentic AI engineering using GPUs, accelerated computing, and digital-twin technologies.

Apple (AAPL 283.10, +4.25, +1.52%) also notched a solid gain, which helped mask losses in over half of the sector's components. 

Meanwhile, Amazon (AMZN 233.88, +0.66, +0.28%) was the only other "magnificent seven" name to capture a gain, which helped the consumer discretionary sector finish on its flatline. 

Alphabet (GOOG 315.12, -5.00, -1.56%), which has notably outperformed this quarter, faced some profit-taking. 

The energy sector (+0.9%) was the only sector to maintain any space above its flatline, supported by crude oil futures settling today's session $0.83 higher (+1.5%) at $59.38 per barrel. OPEC+ announced over the weekend that it will leave oil output levels steady for the first quarter of 2026.

Stocks were unable to maintain the rebound from opening lows, with eight S&P 500 sectors ultimately finishing in negative territory. 

The utilities sector (-2.4%) faced the widest loss as all but one of its components traded lower amid a rise in longer-term treasury yields, sending the sector below its 50-day moving average. 

The health care (-1.5%) sector also faced a considerable loss despite the U.S. and U.K. reaching a broad pharmaceutical pricing agreement in which the U.K. will boost NHS payments for new medicines and ease rebate pressures, while the U.S. will lift tariff threats and drop investigations into U.K. pricing practices. 

Moderna (MRNA 24.16, -1.82, -7.01%) was the worst-performing S&P 500 name, trading lower following a report from The Washington Post that the FDA is planning on imposing stricter standards for vaccine approvals due to alleged coronavirus vaccine deaths, though the link between the vaccine and the fatalities in question is contested. 

The industrials sector (-1.5%) finished similarly, with significant pressure coming from defense names amid some speculation that President Trump's plan to end the Russia-Ukraine war could be successful. The iShares U.S. Aerospace and Defense ETF closed with a 2.9% loss. 

Meanwhile, stocks with direct ties to the cryptocurrency market faced outsized losses. Coinbase Global (COIN 259.84, -12.98, -4.76%) and Robinhood Markets (HOOD 123.24, -5.25, -4.09%) were two of the worst-performing names in the financials sector (-0.9%), while Bitmine Immersion Technologies (BMNR 28.98, -4.14, -12.50%) faced a double-digit loss as Ethereum slid alongside Bitcoin. Strategy Inc (MSTR 171.42, -5.76, -3.25%) reversed from its session lows but still finished with a loss. 

The small-cap Russell 2000 (-1.3%) underperformed amid today's risk-off sentiment, while the S&P Mid Cap 400 (-0.5%) finished with a loss similar to that of its larger-cap counterparts. 

Ultimately, today's broad-based retreat was reminiscent of earlier-November sessions, not the rally that came amid a spike in rate-cut expectations near the month's end. While expectations for further Fed easing remain elevated, the market was subject to some profit-taking from last week's highs, while a sharp sell-off in cryptocurrency and a dip in U.S. Treasuries weighed on sentiment. Fortunately, the month-ending rally put enough space between the major averages and their 50-day moving averages that they all remain over 1% above the key technical level even after today's weakness. 

U.S. Treasuries began December on a lower note, sliding alongside other sovereign debt amid solidifying expectations for a rate hike from the Bank of Japan on December 19. The 2-year note yield settled up five basis points to 3.54%, and the 10-year note yield settled up eight basis points to 4.10%. 

• Nasdaq Composite: +20.5% YTD
• S&P 500: +15.8% YTD
• DJIA: +11.2% YTD
• Russell 2000: +10.7% YTD
• S&P Mid Cap 400: +5.4% YTD

Reviewing today's data:

• The November ISM Manufacturing Index checked in at 48.2% for November (Briefing.com consensus: 49.0%), down from 48.7% in October. The dividing line between expansion and contraction is 50.0%, so the November figure, which is the ninth straight month below 50.0%, suggests manufacturing activity contracted at a faster pace than the prior month.
  • The key takeaway from the report is that the manufacturing sector resembled a sector in a state of stagflation in November, punctuated by a faster pace of contraction, rising prices, and weakening employment.
• The S&P Global U.S. Manufacturing PMI hit 52.2 in the final reading for November, down from 52.5 in October.