Stocks Slip, Bitcoin Drops Ahead of Busy Data Week: Markets Wrap
(Bloomberg) — US stock futures and cryptocurrencies dropped, 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 fell as much as 0.6%. Japanese stocks fell 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 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. Investors 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.
The Bloomberg Dollar Spot Index was steady after four days of losses. Elsewhere, WTI crude oil jumped after OPEC+ confirmed it will stick with plans to pause production hikes during the first quarter. Silver and copper also climbed after hitting fresh records on Friday.
A rally in metal shares helped Chinese equities begin December on an optimistic note. That’s even as data published Sunday that showed factory activity improved but remained in contraction in November, extending its streak of declines to a record as the country’s economic slowdown deepens.
BOJ, Fed Decisions
The BOJ “will consider the pros and cons of raising the policy interest rate and make decisions as appropriate” by examining the economy, inflation and financial markets at home and abroad, Ueda said Monday in a speech to local business leaders in Nagoya, central Japan. Traders see about a 64% chance of a rate hike when the central bank concludes its next policy meeting on Dec. 19, according to the overnight swap index.
By calling attention to a specific policy meeting, Ueda is likely indicating the rising possibility of rate action at that time. In late December a year ago, the governor pledged to assess the state of the economy carefully at the next meeting, when the bank wound up raising borrowing costs.
For the US, this week begins with fresh data on consumer spending, including Cyber Monday sales, and the release of more delayed economic indicators. Fed officials will review an outdated reading of their preferred inflation gauge ahead of the Dec. 9–10 policy meeting, where debate is expected to center on labor market conditions and the case for a third consecutive rate cut.
Markets are continuing to bet that the central bank will cut its benchmark this month. Swaps data shows traders have priced in almost a full quarter-point reduction since New York Fed President John Williams said he saw room to lower rates again in the near-term amid labor-market softness.
“For now, the data supports the soft landing, and that contributed to the continued equity rally ahead of Thanksgiving,” wrote Tom Essaye of the Sevens Report. “However, there remain a lot of economic unknowns right now and there are simmering risks that the economy is not as strong as investors believe given the lack of government data in recent months.”
While the Fed enters its pre-meeting blackout period, Chair Jerome Powell and Governor Michelle Bowman are scheduled to speak, though they are barred from commenting on the economic outlook or policy.
Other economic data in the coming week include ADP private employment figures for November, as well as Institute for Supply Management surveys of manufacturers and service providers. The Fed is also scheduled to release September industrial production figures.
Hassett, speaking on CBS’ Face the Nation on Sunday, declined to address whether he considers himself the front-runner to replace Fed Chair Jerome Powell, adding a positive market response to indications that US President Donald Trump could pick the next chair before the end of the year.
Corporate News
EQT AB and CVC Asia Pacific Ltd. scrapped talks with AUB Group Ltd. about a possible takeover offer that had valued the Australian insurance broker at around A$5.2 billion ($3.4 billion). AUB shares slumped. South Korean authorities are investigating a data leak at online retailer Coupang Inc. that exposed about 33.7 million accounts in what could be the widest hack for the country of 51.7 million people. BYD Co. will push a software update to almost 90,000 plug-in hybrid vehicles in China after the national regulator said manufacturing defects in battery packs pose safety risks. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.6% as of 11:43 a.m. Tokyo time Japan’s Topix fell 1% Australia’s S&P/ASX 200 fell 0.4% Hong Kong’s Hang Seng rose 0.7% The Shanghai Composite rose 0.3% Euro Stoxx 50 futures fell 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1596 The Japanese yen rose 0.5% to 155.47 per dollar The offshore yuan was little changed at 7.0711 per dollar Cryptocurrencies
Bitcoin fell 4.6% to $86,945.43 Ether fell 5.5% to $2,857.2 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.03% Japan’s 10-year yield advanced four basis points to 1.845% Australia’s 10-year yield advanced four basis points to 4.55% Commodities
West Texas Intermediate crude rose 1.6% to $59.47 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Youkyung Lee.
©2025 Bloomberg L.P.
