Markets Brace for PCE Report as Bitcoin Retreats from Record High

U.S. stock futures traded lower as investors braced for the latest PCE data. Nasdaq 100 futures fell 1.25%, while the S&P 500 and Dow Jones Industrial Average futures dropped 0.75% and 0.55%, respectively.

Investors are on edge after the Federal Reserve signaled it may cut rates only twice in 2025, down from the previously expected four cuts. The Fed's latest move reflects heightened caution about inflation, especially as U.S. consumer prices saw their sharpest rise in seven months in November.

Markets will be closely watching Friday’s PCE index release. Economists expect core PCE to rise 2.9% year-over-year, up from 2.8% in October. A stronger-than-expected reading could fuel concerns that the Fed may pause or limit future rate cuts, pressuring equities further.

Amazon Workers Strike at Peak Holiday Season

Amazon (NASDAQ:AMZN) faced its largest U.S. worker strike in history on Thursday, as members of the Teamsters union walked out at seven facilities in New York, Georgia, California, and Illinois. The union is demanding better pay, benefits, and safer working conditions.

The strike, which comes during the crucial holiday shopping season, aims to push Amazon to the negotiating table. The company, however, downplayed the significance of the strike, claiming that most of the demonstrators were “outsiders” and not current employees.

The Teamsters reported that nearly 10,000 Amazon workers have joined their ranks, though this represents less than 1% of Amazon’s total workforce. For investors, the strike poses a potential disruption risk to Amazon’s holiday operations, which could weigh on the company's fourth-quarter revenue.

Bitcoin Plummets After Record High

Bitcoin’s (CRYPTO:BTCUSD) wild ride continues. The world’s largest cryptocurrency plunged 9% on Friday to $92,808, a steep drop from its record high of $108,000 reached earlier this week.

Investor sentiment soured after the Federal Reserve's hawkish pivot dampened enthusiasm for riskier assets like crypto. Broader equity market weakness added to the selling pressure, as traders reeled from the Fed’s signal of fewer rate cuts next year.

Bitcoin is still up more than 100% this year, fueled by optimism around spot Bitcoin ETFs and the election of Donald Trump, who has promised pro-crypto policies. But as risk sentiment shifts, other major cryptocurrencies also took a hit. Ethereum (Ether) fell 15%, while XRP plunged 17%.

For crypto investors, the big question is whether Bitcoin's support will hold near $90,000 or if more downside is ahead. Given the Fed's stance and broader market uncertainty, traders may remain cautious.

Oil Prices Drop as Dollar Soars

Oil prices are headed for weekly losses, with U.S. crude (WTI) down 2.3% to $68.97 a barrel and Brent crude down 0.6% to $72.47. For the week, both benchmarks are on track to lose around 3%.

The stronger U.S. dollar, which recently hit a two-year high, is a key factor. Since oil is priced in dollars, a stronger dollar makes crude more expensive for international buyers, dampening demand. Concerns about slower U.S. fuel demand and uncertainty over China’s stimulus measures added to the bearish sentiment.

For energy investors, the focus will be on whether crude can stabilize near the $70 mark or if renewed fears of slowing global demand will push prices lower.