U.S. stock futures inched higher on Monday night, reflecting cautious attempts at a rebound after a turbulent opening session for December. The move comes as Wall Street reassesses risk appetite following a sharp drop in cryptocurrency prices and broader uncertainty surrounding interest-rate policy.

Recent Gains Countered by Crypto-Induced Risk Aversion

Major U.S. indexes ended last week with modest gains following the Thanksgiving holiday, but opened December on the back foot. A significant slump in cryptocurrencies pressured broader risk sentiment, triggering sharp declines across speculative and high-volatility sectors.

The rapid drop in Bitcoin contributed to a notable “risk-off” shift, pushing investors out of crypto-linked equities and other growth names. Bond yields also softened before stabilizing, reflecting heightened caution across financial markets. Futures tied to the S&P 500 and Nasdaq showed signs of stabilization, but investor sentiment remains fragile.

Market Reaction: Volatility Returns and Safe-Haven Flows

Bitcoin’s slide below the USD 86,000 level rattled markets and revived concerns about speculative excess spilling into equities. Safe-haven demand strengthened as investors sought protection amid the volatility, with flows returning to defensive asset classes.

This environment remains challenging for sectors closely tied to risk sentiment — particularly high-beta technology stocks and firms with exposure to digital assets. While futures are inching higher, the cautious tone suggests traders are waiting for stronger macro signals before committing to fresh positions.

Macro Crosswinds: Data Ahead, Policy Uncertain

Attention now shifts to a busy economic calendar. Investors are awaiting manufacturing indicators, private employment data, and consumer-activity metrics to gauge momentum heading into the final Federal Reserve meeting of the year.

Although markets have priced in a high likelihood of a rate cut, persistent inflation pressures and a resilient labor market could complicate expectations. Any divergence between market assumptions and central-bank communication may inject further volatility into equities, currencies, and bonds.

For global investors — including those in Israel — shifting monetary expectations, currency movements, and capital-flow patterns will be important to monitor as December trading unfolds.

Outlook: What to Watch in the Coming Days

As the final month of the year begins, markets appear set for a period of caution. Key drivers include upcoming U.S. economic data, movements in Treasury yields, and comments from central-bank officials. A recovery in risk appetite could help equities rebound if inflation indicators continue to ease.

However, renewed instability in crypto markets, weaker-than-expected economic data, or a hawkish shift in central-bank tone could intensify volatility — particularly for speculative assets. Investors may increasingly prioritize companies with strong earnings durability and predictable cash flow as uncertainty persists.