Futures for the Dow are showing little movement, as market participants focus on a decline in Bitcoin alongside anticipations of an interest rate reduction by the Federal Reserve in the upcoming week. Bitcoin remains near the equilibrium point, as a deteriorating risk appetite diminishes the attractiveness of the cryptocurrency. Gold experiences a slight decline, influenced by an increase in U.S. Treasury yields, as oil prices exhibit volatility. In other developments, Marvell Technology is scheduled to announce its results following the market’s close, with the U.S. chipmaker likely poised to offer new insights into the ongoing artificial intelligence phenomenon.

On Tuesday, Dow futures exhibited a subdued performance following the initial trading session of December, which was characterised by a decline in Bitcoin prices, an increase in Treasury yields, and lacklustre U.S. economic data. As of 03:17, the Dow futures contract experienced a decrease of 71 points, representing a decline of 0.2%. Similarly, S&P 500 futures saw a reduction of 12 points, also reflecting a 0.2% drop, while Nasdaq 100 futures fell by 58 points, maintaining the same percentage decrease of 0.2%. The primary indices experienced a downturn on Monday, as sentiment was dampened by data indicating that manufacturing sector activity has contracted for the ninth consecutive month in November, pointing to persistent challenges stemming from extensive tariffs. Widespread market expectations for a Federal Reserve interest rate cut later this month persisted in light of the data. Reports indicate that there is approximately an 85% probability of a quarter-point reduction following the Federal Reserve’s meeting scheduled for December 9-10. In the interim, U.S. government bond yields, which typically exhibit an inverse relationship with prices, increased in response to remarks made by Bank of Japan Governor Kazuo Ueda, indicating that economic conditions were conducive to a possible increase in borrowing costs in the Asian country. Japanese and European government bonds experienced a decline. Concurrently, a significant decline in Bitcoin exerted pressure on equities linked to the world’s foremost cryptocurrency and an indicator of overall risk appetite. Strategy, the largest holder of digital assets, has revised its 2025 earnings forecast downward in response to the weakness observed in Bitcoin, resulting in a decline in the company’s shares.

Bitcoin fluctuated near the equilibrium point on Tuesday. The significant decline on Monday pushed the cryptocurrency beneath $84,000, as a resurgence of risk aversion impacted digital assets at the beginning of December. Traders expressed a pessimistic outlook regarding Bitcoin, even in light of a recent recovery from levels approaching $80,000 late last week. By 03:32, Bitcoin exhibited a decline of 0.4%, priced at $86,480.3. In November, the cryptocurrency experienced a decline exceeding $18,000 – marking its most significant drop since 2021. Highlighting its volatility, the token has now declined approximately 30% from an all-time high achieved just weeks ago in October.

Gold prices experienced a slight decline as the increase in U.S. Treasury yields exerted pressure on the metal. Investors are adopting a cautious stance in anticipation of a series of important economic indicators and the Federal Reserve’s much-anticipated policy decision. Spot gold declined by 0.4% to $4,213.95 per ounce as of 03:40, following a peak that marked a six-week high in the prior session. U.S. gold futures experienced a decline of 0.7%, settling at $4,245.25. The recent pullback occurred as benchmark 10-year U.S. Treasury yields approached a two-week high, diminishing demand for non-yielding bullion and moderating optimism regarding the increasing expectations of a near-term Fed rate cut. Despite the softer tone, the underlying sentiment towards gold remained generally positive. Market pricing remains indicative of strong expectations that the Fed may implement another interest-rate cut in the upcoming week, as investors speculate that diminishing inflation and indications of a cooling labour market will provide policymakers with the latitude to ease monetary policy.

Oil prices exhibited volatility, reflecting the tenuous nature of peace prospects in Ukraine, escalating tensions between the U.S. and Venezuela, and an increase in output levels by a consortium of major producers. Brent futures experienced a decline of 0.2%, settling at $63.04 per barrel, while U.S. West Texas Intermediate crude futures decreased by 0.1%, reaching $59.27 per barrel as of 03:45. Both benchmarks experienced an increase exceeding 1% on Monday, with the WTI contract approaching a two-week peak. Ukrainian President Volodymyr Zelenskiy stated on Monday that Kyiv’s primary objectives are to uphold sovereignty and secure robust security guarantees, noting that territorial disputes continue to be the most complex issue at hand. U.S. envoy Steve Witkoff is scheduled to provide a briefing to the Russian authorities on Tuesday; however, a swift resolution to the nearly four-year-long conflict seems improbable. Tensions between Washington and Caracas have escalated following indications from U.S. officials that they may impose stricter restrictions on Venezuela, a nation recognised for possessing the largest oil reserves globally, including the potential closure of its airspace. On Sunday, the Organisation of Petroleum Exporting Countries and allies, known as OPEC+, reaffirmed a modest increase in oil output for December while also signalling a halt in further increases during the first quarter of the upcoming year, driven by escalating concerns regarding a potential supply glut.

On a relatively light earnings calendar, U.S. chipmaker Marvell Technology is poised to take centre stage. The semiconductor group has emerged as a significant competitor to the larger rival Broadcom, particularly in the provision of custom and networking chips. On Monday, reports indicated that it is in advanced discussions to acquire startup Celestial AI in a potential cash-and-stock deal valued at multiple billions of dollars. The Information reports that the transaction, with a total price potentially exceeding $5 billion, could receive confirmation as early as today. By incorporating Celestial AI, Marvell seeks to enhance its portfolio amid a period where the surge in artificial intelligence has led to an increased demand for computing power. When it reports after the closing bell on Tuesday, Marvell is anticipated to announce earnings per share of $0.74, based on the estimates provided. The company’s shares have experienced a decline of 18% this year, following a lacklustre forecast for its data centre business issued in August.