Why 2026 could be a good setup for stocks, bitcoin slides below $85K

Market Overview - US stocks experienced a decline at the start of December trading, with the NASDAQ leading the drop [1] - The ISM Manufacturing Index for November fell to 48.2%, marking the ninth consecutive month of contraction, indicating a slowdown in manufacturing activity [1][20] - Wall Street strategists are cautiously optimistic about stock performance in 2026, although some believe the market may have priced in overly optimistic scenarios [1][2] Economic Indicators - The ISM Manufacturing Index's contraction reflects a pullback in new orders and employment, with significant uncertainty surrounding tariffs and their impact on manufacturing [20][22] - The GDP of manufacturing sectors remains weak, with ongoing tariff uncertainties contributing to a lack of long-term order commitments from customers [24][25] Sector Performance - Healthcare stocks outperformed in November, gaining nearly 10%, driven by a shift in investor focus from large-cap tech to healthcare [38] - Drug makers and medical device manufacturers have shown strength, while managed care stocks have lagged behind due to inconsistent regulatory news and utilization rates [40][42] Supply Chain and Technology - Concerns about supply chain issues, particularly in the tech sector, are expected to impact stock performance in the first half of 2026, with significant increases in inventory purchases reported by major companies [2][3] - The demand for memory chips and networking components is anticipated to create bottlenecks, complicating market predictions [3][5] Retail Insights - Cyber Monday spending is projected to reach $14.2 billion, with a notable shift towards planned purchases rather than impulse buying [60] - Retailers like Macy's are expected to perform well due to strong foot traffic and effective inventory management, despite a tight labor market affecting holiday hiring [62][71] Corporate Developments - Crowdstrike's price target was raised by Key Bank, reflecting confidence in its market position and growth strategy [10] - Carvana is expected to increase its market share in the used car market significantly by the end of the decade, supported by its delivery model [10] - Bareric Mining is considering a spin-off of its North American gold assets, a move prompted by activist investor interest [14]