US stock futures showed signs of recovery on Friday following a tumultuous week, while the cryptocurrency market continued to face significant challenges, particularly Bitcoin, which hit a multi-month low amid ongoing concerns surrounding artificial intelligence.
Futures for the tech-heavy Nasdaq 100 rose by 0.4%, and contracts on the S&P 500 gained 0.5%. The Dow Jones Industrial Average futures led the advance with a 0.7% increase. This hopeful premarket activity follows a sharp decline in stock prices on Thursday, marking a notable turnaround.
Optimism returned to equity markets after New York Federal Reserve President John Williams indicated the possibility of interest rate cuts in the “near term.” His comments sparked a surge in expectations for a rate decrease at the Fed’s upcoming meeting, with almost 70% of traders now anticipating a cut in December, a stark reversal from the previous day’s sentiment. Williams’ insights arrive amidst a climate of division within the Fed, as they prepare for their final assembly of 2025.
In contrast, the cryptocurrency market exhibited heightened volatility. Bitcoin plummeted to approximately $82,000, marking a continued downward trend from record highs reached over a month ago. This drastic decline has positioned Bitcoin for its worst month since the broader crypto market collapse in 2022.
As Wall Street braces for a challenging month, the S&P 500 is on track for its poorest November performance since 2008, fueled by increasing fears surrounding a potential AI bubble. Despite a strong earnings report from Nvidia, concerns persisted among investors.
This week has also seen global stock indices facing losses. The Nasdaq Composite and the S&P 500 are both down over 2% and 3% respectively, while the Dow is projected to see a dip exceeding 3%. Later on Friday, investors are set to receive the final consumer confidence reading for November from the University of Michigan.
In corporate news, Netflix, Comcast, and Paramount have officially put forward bids to acquire Warner Bros. Discovery. Paramount is focused on a complete acquisition, while Netflix and Comcast are interested mainly in the studio and streaming sector. Warner Bros. Discovery is planning to split into two companies by mid-2026.
Chip stocks also experienced volatility as investor concerns over the AI sector intensified. Nvidia, which had recently reported strong earnings, saw its shares decline, while other major chip companies such as Taiwan Semiconductor and South Korean SK Hynix faced significant losses.
In more positive corporate news, BJ’s Wholesale Club experienced a 4% rise in stock price after reporting earnings that outperformed analyst expectations, resulting in a revised profit outlook. Similarly, Gap Inc.’s shares increased by 4% following their quarterly earnings that exceeded estimates, buoyed by strong performance across its core brands.
Bank of America noted that despite the current pressures, tech stocks are still poised to see record inflows this year, reaching approximately $75 billion, highlighting sustained demand for the sector despite valuation concerns.
Amid these developments, Bitcoin continued its steep decline, trading nearly 9% lower early Friday, reinforcing fears of a repeat of 2022’s market conditions.
