A Trader works on the floor of the New York Stock Exchange (NYSE) in New York on November 21, 2025.
Angela Weiss | Afp | Getty Images
Stock futures are relatively flat Monday night after a weak start to December trading.
Futures tied to the Dow Jones Industrial Average were barely changed. The S&P futures and Nasdaq 100 futures also were hovering near the flatline.
The major U.S. indexes began the week in the red, ending five-day win streaks on Monday. Risk-off sentiment has pressured the bull market in recent weeks as worries of persistent inflation, elevated valuations and returns on artificial intelligence spending weigh on investors.
The slump in cryptocurrencies intensified during the previous session as bitcoin dropped 6% and recorded its worst day since March. Crypto stocks Coinbase and Robinhood each declined more than 4%. November’s standout “Magnificent Seven” stock, Google parent Alphabet, took back some gains and fell 1.7%, while other tech heavyhitters Palantir and Broadcom also declined. Gold prices and bond yields rose, meanwhile.
Although November was a downbeat month for tech stocks, and saw both the S&P 500 and 30-stock Dow eke out small gains, investors are watching for catalysts that could lead to a year-end rally.
Traders are currently optimistic that the Federal Reserve will announce an interest rate cut on Dec. 10 at conclusion of its next policy meeting. Markets are pricing an 87.6% chance of a cut during the upcoming meeting, which is much higher than the odds from mid-November, according to the CME FedWatch tool.
“Bulls still enjoy a strong tailwind from technical and fundamental factors as we approach year-end. On the technical front, December remains a strong seasonal month, fund flows have been steady, risk metrics have improved, the S&P 500 has surged back above the 50-day moving average, breadth has improved, yet sentiment remains historically weak,” said Mark Hackett, chief market strategist at Nationwide. “The bear’s argument relies on concern over the sustainability of the AI buildout and elevated valuations.”
December tends to be a strong month for the broader market. The S&P 500 averages a gain of more than 1% in December, making it the third-best month of the year for the benchmark in records going back to 1950, according to the Stock Trader’s Almanac.