The S&P 500 (500 big U.S. companies) fell 1.66% yesterday and is up 14.55% this year.The ACWI (global stock index) fell 0.25% and is up 18.58% this year. Gold fell to $4,170 per ounce and is up 59.04% this year.
🗞️ Relevant Market News
Stocks in the United States had a big down day. It was the worst day of November. All sectors fell. Technology stocks fell the most.
👑 Nvidia dropped 3.6%
🚗 Tesla dropped 6.6%
One reason for the drop:
Investors now think the central bank is less likely to cut interest rates in December.
💡 Financial Education
Interest rate expectations affect the stock market. Cheaper money makes stocks more attractive.When people think rates will stay high for longer, investors become more cautious. This often leads to market declines. When people think rates might be cut soon, they expect borrowing to become cheaper.
₿ Bitcoin fell below 100k. Crypto stocks dropped too.Coinbase fell almost 7%.MicroStrategy fell more than 7%.
Bitcoin is very volatile. It moves up and down quickly. Because of this, it should be only a small part of an investor’s portfolio.
Bond yields stayed stable:
🇺🇸 US10Y 4.12%
🇮🇹 IT10Y 3.41%
🇩🇪 DE10Y 2.69%
💡 What are US10Y, IT10Y and DE10Y?
These are 10-year government bond yields.They show how much a government pays investors to lend it money for 10 years.
Higher yields mean borrowing is more expensive.
Lower yields mean borrowing is cheaper.
Bond yields matter because they influence mortgages, loans, and how expensive it is for governments and companies to borrow money.