S&P 500 and Nasdaq pare losses as five-day rally wobbles; retailers split post-Black Friday, chips mixed
U.S. stocks bounced off session lows but stayed in the red Monday, leaving a five-day win streak at risk as traders weighed uneven holiday spending and a softer tone in megacap tech. The pullback kept risk appetite contained across global assets, with FX desks watching for spillover into the dollar and yen as liquidity thins between holidays.
Market snapshot
- The S&P 500 was last down roughly 0.3% near 6,830 after trimming a deeper intraday decline of about 49 points.
- The Nasdaq Composite slipped around 0.3% to roughly 23,290 after earlier falling by about 255 points.
- Both benchmarks rebounded toward session highs but remained negative, keeping the recent multi-day advance in jeopardy.
Key developments for equity and FX traders
- Five-day win streak threatened as major U.S. indices stay lower despite intraday rebound.
- Holiday spending mixed: strong online demand contrasts with softer in-store traffic, driving dispersion in retail stocks.
- Semiconductors trade unevenly, signaling a pause in recent AI-led momentum.
- Risk tone cautious into early December; FX volatility subdued but sensitive to any shift in yields and data surprises.
Retail check: e-commerce outperforms, stores lag
Post–Black Friday and Cyber Monday takeaways point to robust online activity and more selective in-store spending. That mix supported select e-commerce and off-price names while pressuring store-heavy exposures. In midday trading:
- Amazon up about 0.4%
- Costco lower roughly 0.6%
- Walmart up about 0.5%
- Best Buy down around 0.7%
- Macy’s higher roughly 1.7%
- Lululemon down about 0.9%
- Target up near 1.5%
- Nike higher around 1.4%
The online-versus-store divergence matters for margins and inventory carry into December, with promotions likely to remain targeted. For macro watchers, a healthy digital channel supports headline spending but may imply tighter store traffic and a heavier mix of discounting to clear winter and year-end inventories.
Chips mixed as AI leaders steady, broader group cools
Semiconductors were directionless after a strong year-to-date run:
- Nvidia up about 1.1%
- Broadcom down roughly 2.8%
- AMD little changed
- Micron down around 0.3%
- Intel lower roughly 1.0%
Rotation within the group underscores valuation sensitivity and positioning into year-end. For broader risk sentiment, a steadier AI bellwether bid alongside weakness in diversified chipmakers keeps indices rangebound rather than decisively risk-on.
Macro lens: what this means for FX and rates
The equity fade, even with intraday stabilization, keeps the market in a wait-and-see stance for early December data. In FX, a cautious tone typically supports the U.S. dollar and Japanese yen on safe-haven flows, while pro-cyclical currencies (AUD, NOK, SEK) tend to underperform when equities wobble. With liquidity thin post-holiday and ahead of major releases, ranges may hold unless yields break meaningfully. Traders will watch whether consumer strength from online sales carries into December, a swing factor for inflation expectations and the path of policy-sensitive front-end yields.
Levels and positioning
- Equities: S&P 500 and Nasdaq rebounded from session lows but remain vulnerable if leadership in tech fades into the close.
- FX: Dollar and yen sensitivity to equity drawdowns remains elevated; euro and sterling may trade directionally with broader risk tone.
- Rates: Thin liquidity can amplify moves; any surprise in consumer or labor data could quickly reset December expectations.
FAQ
Why does a U.S. stock pullback matter for FX?
Equity risk appetite influences safe-haven demand. When stocks soften, investors often rotate toward the U.S. dollar and Japanese yen, while growth-sensitive currencies can lag. The effect is strongest when volatility rises or yields move sharply.
What do mixed Black Friday results imply for inflation?
Strong online sales with softer in-store traffic suggest targeted promotions and a price-sensitive consumer. If discounting deepens in December to clear inventory, it may modestly ease goods inflation, though services inflation remains the key macro driver.
How are chip stocks shaping broader sentiment?
Semiconductors have outsized influence due to AI-led leadership. When AI bellwethers hold gains but the broader chip complex softens, indices can remain rangebound. A decisive turn in semis often precedes broader market momentum shifts.
What should traders watch into the close?
Follow-through in megacap tech, breadth on up days versus down days, and whether indices can reclaim session highs. In FX, monitor the dollar and yen response if equities retest lows, and watch front-end yields for clues on policy expectations.
How does thin post-holiday liquidity affect markets?
Liquidity tends to be patchy, which can amplify intraday swings and widen bid-ask spreads. That makes risk management and sizing more important for both equity and FX trades, especially around data releases.
Edited by BPayNews
Last updated on December 1st, 2025 at 04:11 pm
