Stocks Rebound as Fed Hints at Rate Cut, Bitcoin Hits New Lows
Headline: Stock Futures Rebound as Fed Signals Rate Cut, Bitcoin Tumbles
Market Snapshot
U.S. stock futures rose Friday morning, reversing some losses after a turbulent week, as investors grew more confident about a possible Federal Reserve rate cut in December. Meanwhile, the cryptocurrency market suffered, with bitcoin sinking to its lowest level in months.
Futures at a Glance
- Nasdaq 100 futures: +0.4%
- S&P 500 futures: +0.5%
- Dow Jones futures: +0.7%
This rebound came after a sharp selloff on Thursday, fueled by worries about the future of artificial intelligence stocks.
Fed Signals and Rate Expectations
A key driver for the shift in sentiment came from New York Fed President John Williams, who indicated that an interest rate cut may come soon. Following his comments, market expectations for a December rate reduction surged to nearly 70%.
This is a significant turnaround from the prior day and occurs as Federal Reserve officials show differing views on the path forward for monetary policy ahead of their final 2025 meeting.
AI Jitters and Equity Performance
The stock volatility comes amid mounting concern over a potential AI-driven market bubble. Despite strong earnings from Nvidia and assurances from its CEO, market jitters persist.
The S&P 500 is on track for its biggest November drop since 2008, while both the S&P 500 and Nasdaq Composite are eyeing weekly losses beyond 2% and 3%, respectively. The Dow Jones is also facing a weekly slide of over 3%.
Crypto Selloff: Bitcoin at New Lows
In the crypto market, bitcoin continued its steep decline, dropping as low as $82,000—down more than 30% from its record high in early October. Bitcoin is now on pace for its worst monthly performance since the collapse of FTX and other major crypto firms in 2022.
The drop has been intensified by a wave of liquidations, removing billions in leveraged bets and deepening negative sentiment.
“Sentiment across the board is incredibly poor. There appears to be a forced seller in the market and it is unclear how deep this goes,” said Pratik Kala, portfolio manager at Australia-based Apollo Crypto.
Despite governmental support for cryptocurrencies and growing institutional adoption, many market observers remain cautious.
Tech Flows and Valuation Concerns
Beyond market indices and crypto, individual companies also drew attention. Notably, tech sector stocks have seen substantial inflows in 2025, totaling an estimated $75 billion, according to Bank of America. Still, tech shares have shown recent weakness as investors question whether valuations have become overheated.
Earnings Movers
- BJ’s Wholesale Club — Shares climbed after topping third-quarter profit forecasts, driven by higher membership income and digital sales.
- Gap — Delivered earnings above expectations and raised its outlook, with solid growth in its major brands.
- Intuit — Shares jumped in premarket trading following positive earnings results.
- Ross Stores — Also gained premarket after an upbeat earnings report.
What to Watch
Investors are also watching for the University of Michigan’s final November consumer sentiment reading, as the preliminary report indicated consumer confidence remains near a three-year low.
Further speeches from Fed officials could provide more clarity on future interest rate moves.
