Tech Rally Falters Amid Rate Cut Uncertainty, Crypto Markets Watch for Spillover
U.S. equity futures edged higher Friday after a brutal selloff driven by AI valuation concerns and fading hopes for a December rate cut. The Nasdaq Composite’s 2.15% plunge Thursday mirrored crypto’s recent volatility, with traders eyeing whether capital rotates into Bitcoin as a macro hedge.
Nvidia’s earnings beat briefly lifted sentiment before job data soured the mood. The 10-year Treasury yield holding at 4.08% suggests lingering inflation fears—a headwind for risk assets. Oil’s slide below $58/barrel signals demand concerns that could pressure energy-linked tokens like FIL.
Crypto markets remain hypersensitive to equity flows. Watch for:
- BTC/ETH correlation with tech stocks
- Stablecoin inflows signaling risk-off positioning
- Meme coins (DOGE, SHIB, PEPE) as sentiment gauges