US Stocks Fall to 1st Loss in 6 Days   12/01 15:31

   U.S. stocks gave back some of last week's rally, as bitcoin fell again on 
Monday.

   NEW YORK (AP) -- U.S. stocks gave back some of last week's rally, as bitcoin 
fell again on Monday.

   The S&P 500 slipped 0.5% and broke a five-day winning streak. The Dow Jones 
Industrial Average dropped 427 points, or 0.9%, and the Nasdaq composite dipped 
0.4%.

   Last week's rally was largely due to rising hopes that the Federal Reserve 
will cut its main interest rate next week to help shore up the slowing job 
market. Such hopes are still high, with traders betting on a roughly 85% chance 
the Fed will cut at its next meeting, according to data from CME Group.

   But yields for longer-term Treasurys nevertheless rose in the bond market 
Monday. It was part of a worldwide climb for yields after the head of the Bank 
of Japan hinted at a possible hike to interest rates there.

   When bonds are paying higher yields, they can attract investors who would 
otherwise buy stocks or cryptocurrencies. Higher yields undercut prices for all 
kinds of investments, particularly those seen as the most expensive.

   Bitcoin, which was soaring around $125,000 in October, dropped toward 
$85,500. That's down roughly 6% from a day earlier.

   That in turn sent stocks lower across the crypto industry. Coinbase Global 
sank 4.8%, and Robinhood Markets fell 4.1%, for example.

   Strategy, the company that used to be known as MicroStrategy and now raises 
money just to buy bitcoin, lost 3.3%. It said that it sold its stock and raised 
a fund of $1.44 billion in U.S. dollars, not in bitcoin, to help pay for its 
dividends on preferred shares and interest on its debt.

   On the winning side of Wall Street was Synposys, which rose 4.9%. It said 
Nvidia is investing $2 billion in its stock as part of an expanded partnership. 
Nvidia, which has become Wall Street's most influential stock, swung from an 
early loss to a gain of 1.6%.

   The market, meanwhile, had a mixed reaction to what seems like a strong 
start for the holiday shopping season. Consumer spending during the Black 
Friday and Cyber Monday retailing bonanza was expected to exceed expectations, 
despite uncertainty over the outlook for the U.S. economy.

   Williams-Sonoma climbed 1.3%, but Best Buy fell 2.6%.

   All told, the S&P 500 fell 36.46 points to 6,812.63. The Dow Jones 
Industrial Average dropped 427.09 to 47,289.33, and the Nasdaq composite 
slipped 89.76 to 23,275.92.

   In stock markets abroad, indexes were mixed in Asia and Europe.

   France's CAC 40 slipped 0.3%, dragged down in part by a 5.8% loss for Airbus.

   The European aerospace giant said Monday that most of its fleet of 6,000 
A320 passenger jets have received an update after a weekend software glitch 
that could have affected flight controls. Travelers faced minor disruptions as 
airlines scrambled to push the software updates out after Airbus warned of the 
problem Friday.

   In Japan, the Nikkei 225 tumbled 1.9% on worries about the possibility of 
higher interest rates. Japan's benchmark interest rate has remained near zero 
for years in hopes of juicing the economy. Now inflation is holding above the 
Bank of Japan's target of about 2%.

   In the bond market, the yield on the 10-year Treasury rose to 4.09% from 
4.02% Friday.

   It briefly slowed its ascent in the morning after a report showed activity 
for U.S. manufacturers shrank by more last month than economists expected.

   Jobs are under pressure at manufacturers, and the majority in a survey by 
the Institute for Supply Management said they're still focused more on managing 
headcount than on hiring. Several manufacturers also said tariffs are 
continuing to make things complicated.

   "Conditions are more trying than during the coronavirus pandemic in terms of 
supply chain uncertainty," one manufacturer told the ISM.