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Markets Reprice Fed Cut Odds as Tech Slumps, Bitcoin Sinks Below $100,000

Hawkish Fed remarks have pulled December cut odds back to roughly 50%.

Overview

  • Market-implied probability of a 25 bp December cut fell to 49.6%, per CME FedWatch, after comments from Fed officials including Alberto Musalem and Beth Hammack, with Neel Kashkari saying he remains undecided.
  • After the steepest one-day drop in over a month led by heavyweight tech, futures pointed lower again Friday (Dow -0.17%, S&P -0.22%, Nasdaq 100 -0.47%) as the VIX hovered near 21.
  • Bitcoin slid below $100,000, recently around $96,968 after a 6.5% drop, leaving the token down by more than $450 billion in market value since early October.
  • Applied Materials said it expects weaker China spending on chip equipment next year due to tighter U.S. export controls and reiterated a roughly $600 million fiscal 2026 revenue hit.
  • The just-ended U.S. government shutdown has left a data drought that could permanently erase some October releases, complicating the Fed’s read on jobs and inflation.