It Was a Rough Day for Bitcoin, Crypto Stocks

US stocks gave back some of last week's rally on Monday as bitcoin and other former stars of Wall Street fell again.

• The S&P 500 fell 36.46 points, or 0.5%, to 6,812.63, breaking a five-day winning streak.
• The Dow Jones Industrial Average dropped 427.09 points, or 0.9%, to 47,289.33.
• The Nasdaq composite slipped 89.76 points, or 0.4%, to 23,275.9

Crypto-related stocks sank to some of the sharpest losses after bitcoin dropped sharply, the AP reports. Stock prices also broadly felt pressure from rising yields in the bond market. Treasury yields climbed along with yields worldwide after the head of the Bank of Japan hinted at a hike to interest rates there.

Bitcoin, which was soaring around $125,000 in October, dropped below $86,000. That's down roughly 7% 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 3.2%. It said that it raised a fund of $1.44 billion in US dollars, not in bitcoin, by selling stock 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 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 US economy. Ross Stores rose 0.7%, and Williams-Sonoma climbed 1.3%. But Best Buy fell 2.6%.

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 US manufacturers shrank by more last month than economists expected. The weaker-than-expected report could give the Fed further leeway to cut interest rates next week. Jobs are under pressure at manufacturers, and the majority told the Institute for Supply Management's survey that 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.