Markets slide as Dow, S&P and Nasdaq drop; bitcoin plunges in volatile December open

U.S. equity markets opened December on a weak note as the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all retreated, while bitcoin plunged in a volatile session that highlighted persistent investor unease. Traders pointed to rising Treasury yields, mixed economic data and profit-taking in richly valued tech names as primary drivers behind the broad-based pullback.

Large-cap growth stocks were among the worst hit after a handful of issuers offered softer-than-expected guidance, renewing speculation the Federal Reserve could keep policy restrictive for longer. As bond yields climbed, long-duration equities felt additional pressure. Financials posted mixed results and energy stocks found some support amid modest oil gains, but overall market breadth weakened.

Cryptocurrency markets intensified the risk-off mood. Bitcoin’s sharp drop prompted forced liquidations in futures markets and pushed leveraged traders to reduce exposure, while ethereum and other major tokens also slid. Market observers noted that elevated leverage and a lower tolerance for risk at month-end likely magnified crypto volatility.

On the macro front, recent consumer and manufacturing data painted a mixed picture of economic momentum, complicating the outlook for interest-rate policy. Comments from Federal Reserve officials underlined the bank’s commitment to fighting inflation, reinforcing expectations that tighter policy could persist.

Market strategists urged investors to look beyond short-term swings. For long-term portfolios, diversification across sectors and asset classes can help manage turbulence. Traders may find opportunities in oversold names or defensive sectors, while volatility creates both risk and potential entry points for disciplined investors.

As the trading day progressed, volumes ticked up and volatility measures rose, signaling elevated caution among participants. All eyes will now be on upcoming economic releases and a fresh slate of corporate earnings for clues on whether this rocky start to December is a brief correction or the onset of a deeper pullback.