U.S. stocks lost ground on Monday amid worries about interest rates, shutdowns in China and ongoing instability in the cryptocurrency sector. The decline followed uncertain trading last week amid a shortened Thanksgiving schedule.
The Nasdaq Composite (COMP.IND) finished -1.6%, the S&P 500 (SP500) closed -1.5% and the Dow (DJI) ended -1.5%.
The Dow Jones dropped 497.57 points to close at 33,849.46 and the S&P 500 slipped 62.18 points to end at 3,963.94. The Nasdaq concluded trading at 11,049.50, a decline of 176.86 points on the day.
All 11 S&P sectors finished in the red. Energy and Real Estate were among the worst performers, each dropping more than 2.7%. Materials and Info Tech all declined more than 2% as well.
"Stocks slumped to kick off the post-Thanksgiving week after generally strong holiday spending took place over the long weekend," analyst Mike Zaccardi told Seeking Alpha. "All eyes will soon be on Friday's November jobs report, which should drive Fed action in December. As it stands, traders see a 32% chance of a 0.75 percentage point hike on December 14."
Stocks endured downward pressure from China, as stringent COVID restrictions led to protests in the country.
Elsewhere, the market also digested further hawkish remarks from a top Federal Reserve official. St. Louis Fed President James Bullard said markets could be underpricing the risk that the Fed may be more aggressive with rate hikes next year.
Meanwhile, ongoing turmoil in the crypto space raised concerns about risk assets in general. The latest downward pressure came from news of a bankruptcy filing from crypto lender BlockFi.
Coming off the Thanksgiving holiday, Wall Street considered incoming data about the start of the holiday shopping season. According to recent readings, foot traffic fell on Black Friday, but there was data suggesting strong results for online sales.
Looking to the fixed-income market, bonds saw muted trading. The 10-year Treasury yield (US10Y) was basically flat at 3.70%, while the 2-year yield (US2Y) slipped 2 basis point to 4.46%.
Among active stocks, Pinduoduo (PDD) rallied, despite the headlines out of China, boosted by strong earnings results.