Stock Market Sell-Off Intensifies: S&P 500 and Nasdaq Break 50-Day Moving Average for First Time in 138 Trading Days

U.S. stock markets experienced a sharp sell-off, with the S&P 500 and Nasdaq Composite closing below their 50-day moving averages for the first time in 138 trading days, according to The Wall Street Journal. The Dow Jones Industrial Average recorded its worst three-day performance since the April 2025 tariff turmoil, extending losses amid broad-based risk aversion.

Key Index Performance on Monday

• Dow Jones: Fell nearly 500 points in its steepest three-day drop since the spring tariff escalation.
• S&P 500: Closed 0.8% lower, breaking the 50-day moving average — a technical support level held for 138 consecutive sessions.
• Nasdaq Composite: Down 1.2%, also breaching its 50-day line as tech-heavy names led the decline.

The moves erased early-session gains and reflected growing investor caution heading into year-end.

Broader Asset Class Pressure: From Gold to Crypto

The risk-off mood spread across markets:

• Gold: Pulled back from recent highs despite its traditional safe-haven status.
• Cryptocurrencies: Bitcoin dipped below $92,000, down more than 5% on the day.
• Technology Stocks: High-flying AI names faced renewed profit-taking amid bubble concerns.

Investors are repositioning ahead of two critical tests for 2026:

1. Sustainability of the AI investment boom
2. Whether the economic growth that drove consecutive record highs in 2025 can persist into the new year

Context: Tariff Uncertainty and Macro Jitters

The sell-off follows months of tariff-related volatility earlier in the year and coincides with uncertainty over Federal Reserve policy, fiscal stimulus, and corporate earnings momentum. While the S&P 500 remains up 12.5% year-to-date, the breach of the 50-day moving average — a widely watched technical threshold — has triggered algorithmic and systematic selling, amplifying the decline.

Analysts note the move does not yet signal a bear market but reflects healthy profit-taking after an extended rally, with many viewing dips as potential buying opportunities if macro conditions stabilize.

In summary, November 18 marked a significant technical shift as the S&P 500 and Nasdaq broke their 50-day moving averages for the first time since spring, dragging the Dow into its worst three-day stretch in months amid broad risk-asset weakness and year-end repositioning.