Flooring Guide by Cinvex – JAKARTA – The US stock market experienced a notable decline on Monday, December 1, 2025, with Wall Street feeling the pressure from surging US Treasury yields and disappointing manufacturing data. This market reaction underscored the lingering impact of trade tariffs previously championed by President Donald Trump. As investors assess the economic landscape, all eyes are now on the Federal Reserve’s pivotal interest rate decision, expected next week, which is anticipated to chart the future course of the economy.
According to a Reuters report on Tuesday, December 2, 2025, major US indices closed lower. The Dow Jones Industrial Average shed 295.65 points, or 0.62%, settling at 47,420.77. Similarly, the S&P 500 saw a decline of 23.22 points, or 0.34%, to reach 6,825.87. The tech-heavy Nasdaq Composite also retracted, falling 68.69 points, or 0.29%, to 23,297.00.
Adding to market jitters, a survey from the Institute for Supply Management (ISM) revealed a continued contraction in US manufacturing activity for the ninth consecutive month in November. Factories reported a persistent downturn in new orders and increasing costs, reflecting the ongoing strain of import tariffs that continue to cast a shadow over the sector.
: December IPO Buzz: Awaiting 13 Surprises with SUPA
Despite the immediate market dip, expectations remain high for the Federal Reserve to implement an interest rate cut by the conclusion of its two-day policy meeting on December 10. The CME Group’s FedWatch Tool, a widely observed indicator, currently places the probability of a 25-basis-point reduction at a significant 87.4%.
Reflecting this shift in focus, Joe Saluzzi, a partner and Head of Equity Market Structure Research at Themis Trading, commented, “The market is fundamentally still driven by corporate earnings during reporting season, but now the focus has entirely shifted to the Fed.”
Despite current headwinds, Saluzzi believes the general upward trend in the stock market will persist through the end of the year, albeit with a likely slower and more gradual strengthening.
Adding fuel to these easing expectations, recent weeks have seen several dovish signals from voting members of the Federal Open Market Committee (FOMC), even as some policymakers voiced caution. Furthermore, reports suggesting that White House Economic Advisor Kevin Hassett is a strong candidate to replace Federal Reserve Chair Jerome Powell have further bolstered predictions of monetary loosening in the coming months.
While Chair Powell is scheduled to deliver a speech after market close, he is not expected to delve into monetary policy direction given its close proximity to the upcoming rate-setting meeting.
: : Timah (TINS) Signals 2025 Dividend Ratio Could Reach 40%
“I think the market will still look for clues, whatever he can offer,” Saluzzi noted, “but it seems the decision is almost a certainty.”
Further influencing investor sentiment, the delayed September Personal Consumption Expenditures (PCE) index report, a critical inflation indicator closely watched by the Fed, is due for release this Friday.
Paradoxically, even amidst prevailing expectations for a rate cut, US Treasury yields registered an increase. This uptick mirrored the weakening of Japanese and European government bonds, a sentiment that emerged after Bank of Japan Governor Kazuo Ueda hinted that economic conditions were nearing a point suitable for an interest rate hike. It’s important to remember that bond prices move inversely to their yields.
The rise in yields exerted downward pressure on several sectors within the S&P 500, particularly those often perceived as bond substitutes, such as real estate and utilities.
Adding to the market’s woes, cryptocurrency-related stocks also faced significant pressure. Coinbase saw its shares decline by 5.1%, while US-listed Bitfarms plunged 6.9% as Bitcoin tumbled approximately 7%, falling below the US$85,000 mark.
According to CoinGecko data, the global cryptocurrency market capitalization has shrunk by over US$1 trillion since peaking at approximately US$4.3 trillion.
Meanwhile, Strategy, one of the world’s largest holders of Bitcoin, saw its shares plummet 7% after an earlier intraday drop of more than 12%. The company also revised its 2025 profit projections downward, citing the weakened performance of Bitcoin’s price as the primary reason.