Stocks slide, Bitcoin price falls as Japan signals rate move

Global stocks fell and cryptocurrencies slumped Monday, with S&P 500 futures down 0.8% and Nasdaq 100 futures off 1.1%. European equity futures pointed to a weaker open, while a broad Asia gauge slipped 0.4%. The decline followed a hint of tighter policy from the Bank of Japan and caution ahead of key US releases, including labor data.

Japan led regional losses as the yen strengthened and the two-year government bond yield rose to the highest since 2008. In a speech to business leaders in Nagoya, Governor Kazuo Ueda said the BOJ will weigh the pros and cons of raising the policy rate and decide as appropriate after assessing domestic and global conditions. Interest-rate markets put the probability of a hike at the Dec. 19 meeting near 64%.

Bitcoin fell 6% to slip below $103,000, with Ether down more than 7% and most major tokens lower. The drop followed earlier gains this year and coincided with broader weakness in risk assets as traders reassessed the outlook for interest rates and growth heading into year-end.

In the US, the week brings updates on consumer spending, including Cyber Monday sales, along with delayed indicators that will shape views on growth and inflation ahead of the Federal Reserve’s December meeting. Focus is on labor market signals from private payrolls and purchasing managers’ surveys. Officials will review an older reading of their preferred inflation gauge before the Dec. 9–10 gathering, where debate will include employment trends and whether to proceed with a third consecutive rate cut.

Market pricing remains tilted to a quarter-point reduction this month after recent remarks from New York Fed President John Williams pointing to room for another cut amid labor-market softness. US Treasury yields were mixed, with the 10-year up about two basis points and the two-year little changed.

Risk appetite softened across assets. The MSCI All Country World Index slipped 0.1% in November after seven straight monthly gains, as enthusiasm for high-profile artificial intelligence shares moderated on valuation and spending concerns. Over the past decade, global stocks have risen an average of 0.5% in December. The dollar index edged higher after four straight declines.

In commodities, WTI crude oil advanced after OPEC+ confirmed plans to pause production hikes in the first quarter. Silver and copper extended gains after setting records on Friday, lifting mining shares and helping Chinese equities start December on firmer footing. Separate data showed China’s factory activity improved in November but remained in contraction.

Political attention in Washington added another variable. President Donald Trump said Sunday he has decided on a nominee for the next Fed chair. White House economic adviser Kevin Hassett indicated markets were prepared for an announcement and did not address whether he viewed himself as the leading candidate to replace Jerome Powell.

Fed Chair Jerome Powell and Governor Michelle Bowman are scheduled to speak during the pre-meeting blackout period, which bars policy commentary. Upcoming releases include ADP private payrolls for November, Institute for Supply Management surveys, and a report on September industrial production.