In a subdued trading session on the eve of the U.S. Consumer Price Index (CPI) report, all three major U.S. stock indices closed lower. The S&P 500 slipped 0.30%, the Dow Jones Industrial Average fell 0.35%—marking its fourth consecutive day of decline—and the Nasdaq Composite, after reaching an intraday record high, reversed course to end down 0.25%. Among crypto-related equities, MicroStrategy rose 3.3% amid speculation it may be added to the Nasdaq 100, while Coinbase shares fell 2.61%.
Meanwhile, the cryptocurrency market experienced significant turbulence. Bitcoin, which had been trading near the $100,000 milestone, plummeted to as low as $94,000 before stabilizing near $97,000. The sharp correction followed the announcement of Google’s latest quantum chip, “Willow,” which reignited concerns within the crypto community about potential vulnerabilities posed by quantum computing to blockchain technology. Altcoins were hit harder, with many experiencing declines of approximately 20%, marking one of the most severe downturns in recent memory.
In the broader financial landscape, the U.S. Dollar Index surged to a one-week high, extending gains for a third consecutive session. Safe-haven demand, driven by geopolitical uncertainties and market expectations for a Federal Reserve interest rate cut next week, lifted gold prices. Spot gold rose over 1%, breaching $2,700 per ounce, while oil prices stabilized, buoyed by optimism surrounding potential stimulus measures from major emerging economies.
All eyes are now on the upcoming November CPI data, which is expected to play a pivotal role in shaping the Federal Reserve’s policy direction during its December 17–18 meeting. According to CME’s FedWatch Tool, traders assign an 86% probability to a rate cut next week.