US stock futures fell and cryptocurrencies plunged, signaling risk aversion ahead of a slew of economic data this week even as bets for a December Federal Reserve interest-rate cut remain firm. Contracts on the S&P 500 dropped as much as 0.7% while Nasdaq 100 futures declined nearly 1%.
Japanese stocks led losses in Asia and the yen rose as Bank of Japan Governor Kazuo Ueda sent the clearest hint yet of a rate hike this month. Ahead of his speech, the two-year bond yield rose to the highest since 2008. Bitcoin lost more than 5% to trade below $87,000.
The week ahead is set to offer a crucial snapshot of US economic momentum as policymakers weigh the trajectory of interest rates heading into 2026. With inflation and consumer demand under scrutiny, data is likely to shape expectations for whether the Fed continues its rate-cutting cycle.
Traders are also bracing for potential shifts in central bank leadership with White House economic adviser Kevin Hassett signaling markets were ready for the announcement of a new Fed chair.
“Investors are cautious to add risk ahead of upcoming US data and macro events,” said Jung In Yun, chief executive officer at Fibonacci Asset Management Global. This looks like a wait-and-watch approach, he said.
An index of global equities fell 0.1% in November after rising for seven straight months. The rally was halted as optimism around high-flying AI stocks faltered due to rising concerns about stretched valuations and excessive spending plans.
