U.S. stock futures steadied on Friday after a sharp selloff earlier in the week, while bitcoin dropped to a seven-month low. Markets are also watching Japan’s new stimulus package and signs of economic weakness in the U.K. ahead of next week’s budget.
1. U.S. Futures Stabilize After Losses
U.S. stock futures were mostly flat early Friday, recovering slightly after Thursday’s steep declines. Investors grew more cautious as expectations faded for a December interest rate cut from the Federal Reserve.
At 03:00 ET (08:00 GMT), S&P 500 futures dipped 0.1%, Nasdaq 100 futures fell 0.2%, and Dow futures rose 0.1%.
All major U.S. indexes are heading for a losing week. The S&P 500 is down 2.9%, the Dow nearly 3%, and the Nasdaq Composite has fallen 3.6%.
Sentiment weakened after the delayed September jobs report showed stronger-than-expected hiring, reducing the likelihood of a near-term rate cut. This reversed the optimism generated by strong third-quarter results and upbeat guidance from Nvidia.
More U.S. data is due Friday, including manufacturing and services PMI readings, industrial production, housing starts, and the University of Michigan consumer sentiment index.
In corporate news, Gap will be in focus after reporting better-than-expected third-quarter comparable sales, supported by strong demand for Old Navy and Banana Republic.
2. Japan Approves Major Stimulus Package
Japan’s parliament approved a ¥21.3 trillion ($135 billion) stimulus package aimed at supporting the country’s economic recovery and boosting competitiveness in key industries such as semiconductors, AI, and shipbuilding.
The package includes ¥17.7 trillion in spending and ¥2.7 trillion in temporary tax cuts.
The yen strengthened slightly Friday but is still on track for a 1.7% weekly loss after touching a 10-month low. Finance Minister Satsuki Katayama warned that currency intervention remains an option if volatility escalates.
Japan last intervened in July 2024, spending ¥5.53 trillion to pull the yen away from 38-year lows.
3. Bitcoin Drops to Seven-Month Low
Bitcoin continued to fall Friday as investors fled risk assets. The cryptocurrency dropped more than 6%, breaking below $86,000 to reach $85,350, and is heading for a weekly loss of more than 9%.
Market sentiment has been hit by renewed fears over high tech valuations and uncertainty around the Federal Reserve’s December meeting. The delayed September payrolls report showing stronger job growth added to concerns.
The broader crypto market has also suffered. CoinGecko estimates that about $1.2 trillion in market value has been wiped out over the past six weeks.
4. U.K. Faces Tough Budget Decisions
Fresh data released Friday highlighted the challenges facing U.K. finance minister Rachel Reeves ahead of next week’s budget.
Government borrowing reached £17.4 billion in October, significantly above expectations. Reeves may need to raise £20–30 billion through tax increases due to weaker growth forecasts, higher borrowing costs, and stalled welfare reforms.
British consumers are already feeling the pressure. Retail sales fell 1.1% in October, while GfK’s long-running consumer sentiment survey declined in November.
5. Oil on Track for Weekly Losses
Oil prices declined again Friday as traders evaluated the potential impact of a Russia-Ukraine peace plan on global supply.
Brent crude fell 1.7% to $62.30, while WTI dropped 2% to $57.85. Both benchmarks are set to record weekly losses of over 3%.
Market sentiment turned cautious as Washington pushed for a peace agreement between Russia and Ukraine. Sanctions on Russian oil producers Rosneft and Lukoil are also set to take effect.
Ukrainian President Volodymyr Zelenskiy said he has received a 28-point peace proposal drafted by the U.S. and Russia and expects to speak with President Donald Trump soon. A breakthrough could remove a large geopolitical risk premium from crude prices.
