Wall Street Rises as Yields, Bitcoin Stabilize Again/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets gained Tuesday as bond yields and bitcoin steadied following previous volatility. The S&P 500 rose 0.5%, helped by earnings surprises from MongoDB and United Natural Foods. Crypto-related stocks rebounded, while investors kept a close eye on inflation and the Fed’s next policy move.
Market Momentum Builds: Quick Looks
- S&P 500 climbs 0.5%, Dow gains 180 points, Nasdaq up 1%.
- Bitcoin rebounds above $90,000 after dipping below $85,000 Monday.
- Bond yields stabilize; 10-year rises slightly, 2-year eases.
- MongoDB surges 25.1% after beating quarterly earnings estimates.
- United Natural Foods jumps 10.6% on strong profit report.
- Signet Jewelers drops 3.5% after cautious holiday forecast.
- Crypto stocks rebound: Coinbase up 4.8%, Robinhood rises 4%.
- Markets anticipate next week’s Federal Reserve interest rate decision.
- Vanguard says labor market stable but softer than last year.
- Asian and European indexes mostly steady; South Korea’s Kospi jumps 1.9%.
Wall Street Rises as Yields, Bitcoin Stabilize Again
Deep Look
Wall Street posted broad gains on Tuesday, buoyed by stabilizing bond yields and a bitcoin rebound, helping major indexes recover from the prior day’s pullback. The S&P 500 rose 0.5%, while the Dow Jones Industrial Average gained 180 points, or 0.4%, and the Nasdaq Composite climbed 1% as tech and crypto-related stocks rallied.
MongoDB led the market surge, jumping 25.1% after the company posted better-than-expected quarterly earnings. The positive report reflected strong demand in the cloud-based database sector. Similarly, United Natural Foods rose 10.6% after exceeding Wall Street’s profit expectations, adding to the day’s positive tone.
Their gains helped offset weakness from Signet Jewelers, which fell 3.5% after issuing a disappointing holiday sales forecast. The company cited a “measured consumer environment,” reinforcing concerns that inflation and economic uncertainty continue to pressure spending, especially in middle- and lower-income households.
Bitcoin Bounces Back, Easing Market Tensions
A key component of Tuesday’s market strength came from the rebound in bitcoin, which climbed back above $90,000 after dipping below $85,000 on Monday. The cryptocurrency’s sharp drop coincided with rising global bond yields, which spooked risk assets across the board.
Crypto-related equities saw a sharp reversal as well. Strategy gained 7.3%, fully recovering from Monday’s losses, while Coinbase Global rose 4.8%, and Robinhood Markets added 4%, nearly erasing previous declines.
Bond Market Mixed, But Calmer
In the Treasury market, yields moved modestly following a significant spike the day before. The 10-year Treasury yield edged up to 4.11% from 4.09%, while the 2-year yield slipped to 3.52% from 3.54%.
Higher yields can depress equity prices by making bonds more attractive and raising borrowing costs. They also tend to weigh heavily on high-valuation and growth stocks, such as those in the tech sector. The recent rise in yields was attributed in part to comments from the Bank of Japan, which signaled a possible interest rate hike — a rare shift from its long-standing ultra-loose monetary policy.
Despite that, investors are still hopeful the Federal Reserve will cut interest rates next week, during its final policy meeting of the year in Washington. The Fed has already reduced its benchmark rate twice in 2025 to support a slowing job market. However, with inflation still stubbornly above its 2% target, further easing could be limited.
Labor Market Still Key to Fed’s Path
A recent U.S. government shutdown delayed several key economic reports, leaving investors and the Fed without a full picture of the labor market. However, according to investment firm Vanguard, the job market remains “stable but softer” than in 2024.
“Overall hiring is slowing month to month,” said Adam Schickling, senior U.S. economist at Vanguard. “But with fewer job seekers — due to reduced immigration and rising retirements — the unemployment rate doesn’t need as much hiring to remain steady.”
This backdrop adds complexity to the Fed’s next move. Cutting rates too soon could reignite inflation, while holding too long could further strain the job market. The central bank’s challenge remains balancing both risks carefully.
Global Markets: A Mixed Picture
Markets abroad were relatively calm, with Europe and most of Asia trading modestly higher or flat. A standout performer was South Korea’s Kospi index, which gained 1.9% thanks to strength in its tech sector. Samsung Electronics rose 2.6%, and chipmaker SK Hynix jumped 3.7%, helping to fuel the rally.
While broader economic concerns remain — from inflation to geopolitical uncertainty — Tuesday’s market rebound suggests renewed optimism as traders look ahead to the final month of the year. With the S&P 500 now just 0.7% shy of its all-time high set in October, bulls are hoping the rally can continue through year-end.
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