Stock Market Today: Nasdaq Futures Slide as Global Markets Turn Risk-Off; Bitcoin Drops 6%
Stock Market Today: Nasdaq futures fall, Bitcoin drops 6%, and global markets turn cautious as investors eye key economic data and potential Fed policy shifts.
Nasdaq futures sink in premarket trade as Bitcoin drops and global markets turn risk-off ahead of key Fed signals.
U. S. stock futures experienced a significant drop on Monday as investors came back from the Thanksgiving holiday to a market atmosphere again filled with uncertainty. The Nasdaq futures were the hardest hit during the hours before the market opened, negatively affected by the dropping of the price of the main tech shares, namely, Nvidia and Palantir.
The overall negative investor attitude is the result of a steep increase in volatility that has affected global stock exchanges for the last few weeks; this volatility has been mainly caused by fears that the market is being driven by AI technology and that a bubble may be forming. The S&P 500, despite a brief rebound during Black Friday, ended November with only a small gain, thus extending its winning streak to seven months.
The release of the global pressure is taking place.
In Japan, both stock and bond prices fell after the central bank governor made a comment that led to the speculation of an interest-rate hike in the near future, which, in turn, created jitters among the global traders.
The digital currency market also suffered setbacks. Bitcoin fell sharply by 6% from late Sunday levels to around $86,000, thus leading the decline in the stocks of companies linked to cryptocurrencies such as Coinbase, Robinhood, and Strategy during the premarket trade.
Conversely, oil prices rose slightly as OPEC+ decided to stick to its current production levels, thereby alleviating concerns regarding the possibility of an oversupply in the market.
This Week's Market Outlook
The market-eager investors are looking for important economic indicators — among which are the November PMI data and the ADP employment report — to find out what the U. S. Federal Reserve is likely to communicate at its meeting that concludes on December 10.
The current market pricing shows a strong belief that the Fed will cut interest rates for the third consecutive time to support the cooling off labor market.
To keep the market interested, President Trump dropped a bombshell on Sunday stating that he has chosen a candidate to take over Federal Reserve Chair Jerome Powell, although he didn’t mention a name. The prediction markets are currently indicating that Kevin Hassett, the National Economic Council's director, is the one most likely to succeed.
