Investors posted gains for the second session in a row, driven by persistently high yields on US government bonds. Market jitters over a less lenient Fed rate path caused investors to exit their positions as 2024 approaches the end.
Bitcoin (BTC) continued its retreat from the December 17 all-time high of $108,231. On Monday, the stock fell to a session low of $91,269. The pullback impacted demand for crypto-related stocks, which continued to weigh on the Nasdaq.
MicroStrategy (MSTR) fell 8.19%, while Marathon Holdings (MARA) fell 6.24%.
Monday’s US market losses will likely set the tone for Tuesday’s Asian session.
US data supports a less flexible Fed rate path
On Monday, upcoming home sales and the Dallas Fed Manufacturing Index figures painted a rosier picture of the US economy. Pending home sales rose 2.2% in November, building on October’s 1.8% increase. Economists view the housing market as a barometer for the American economy. Rising demand could push up housing prices and rents, fueling housing shortages and demand-driven inflation.
The Dallas Fed Manufacturing Index also surprised positively, rising 3.4% in December. Economists had expected a decline of 0.4%, after a decline of 2.7% in November.