US Stocks Decline Amid Bond Yield Concerns

The anticipated 'Santa Claus Rally' has faltered, with U.S. stocks experiencing back-to-back losses during the holiday trading period, a rare occurrence in market history. The S&P 500 has dropped 1% in December, while the Dow has slid 4.3%, their worst monthly performances since April, despite overall gains of 25.2% and 14.1% for the year, respectively. Bitcoin and other cryptocurrencies are also struggling, with Bitcoin's price falling over 2% recently, influenced by rising energy prices and a Bitcoin miner selloff. Meanwhile, rising bond yields have pressured tech stocks, contributing to the market slump as major indices like the Nasdaq and S&P 500 faced significant declines on Friday. Despite a brief rally earlier in the week, the markets could not sustain momentum due to concerns about interest rates and potential trade policies under a new administration. As the year closes, traders remain uncertain about potential year-end fluctuations amidst light trading volumes and the need for pension funds to rebalance their holdings.