Strategy, the company that used to be known as MicroStrategy and now raises money just to buy bitcoin, lost 10.9 per cent. It said that it raised a fund of $US1.44 billion ($2.1 billion) in US dollars, not in bitcoin, by selling stock to help pay for its dividends on preferred shares and interest on its debt.
On the winning side of Wall Street was Synposys, which rose 3.5 per cent. It said Nvidia is investing $US2 billion in its stock as part of an expanded partnership. Nvidia, which has become Wall Street’s most influential stock, swung from an early loss to a gain of 1.2 per cent.
The market, meanwhile, had a mixed reaction to what seems like a strong start for the holiday shopping season. Consumer spending during the Black Friday and Cyber Monday retailing bonanza was expected to exceed expectations, despite uncertainty over the outlook for the US economy.
Ross Stores rose 1 per cent, and Williams-Sonoma climbed 1.4 per cent. But Best Buy fell 1.4 per cent.
In stock markets abroad, indexes were mixed amid sharp moves.
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France’s CAC 40 slipped 0.2 per cent, dragged down in part by a 5.7 per cent loss for Airbus.
The European aerospace giant said Monday that most of its fleet of 6,000 A320 passenger jets have received an update after a weekend software glitch that could have affected flight controls. Travelers faced minor disruptions heading into the weekend as airlines around the world scrambled to push the software updates out after Airbus warned of the problem Friday, one of the busiest travel days of the year.
In Japan, the Nikkei 225 tumbled 1.9 per cent on worries about the possibility of higher interest rates. Japan’s benchmark interest rate has remained near zero for years in hopes of juicing the economy. Now inflation is holding above the Bank of Japan’s target of about 2 per cent.
In the bond market, the yield on the 10-year Treasury rose to 4.09 per cent from 4.02 per cent Friday.
It briefly slowed its ascent in the morning after a report showed activity for US manufacturers shrank by more last month than economists expected. The weaker-than-expected report could give the Fed further leeway to cut interest rates.
Jobs are under pressure at manufacturers, and the majority told the Institute for Supply Management’s survey that they’re still focused more on managing headcount than on hiring. Several manufacturers also said tariffs are continuing to make things complicated.
“Conditions are more trying than during the coronavirus pandemic in terms of supply chain uncertainty,” one manufacturer told the ISM.
AP
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