U.S. stock futures decline further, with Nasdaq 100 index futures down 1%, gold falling to $3,970, and cryptocurrencies experiencing widespread declines

Asia-Pacific stock markets fell back from historical highs on Tuesday, with the Nikkei 225 index down 1%. U.S. stock futures extended their decline, with Nasdaq 100 futures down 1%, as investors chose to remain cautious amid the dual pressures of uncertainty over the Federal Reserve's interest rate path and valuation concerns in tech stocks. Cryptocurrencies saw widespread declines, with Ethereum down nearly 6% and Bitcoin down 2%. The U.S. dollar index strengthened for five consecutive days, previously breaking the 100 mark. Gold retreated below $4,000.

Recent statements from Federal Reserve officials have intensified market doubts about the direction of monetary policy. Chicago Fed President Austan Goolsbee indicated that his current concerns about inflation outweigh his focus on the labor market, suggesting that the Fed may adopt a more cautious stance on interest rate cuts.

Meanwhile, the strong rally in tech stocks is facing a test. Data analytics company Palantir fell in after-hours trading following the release of its latest earnings report, giving back some of its gains since 2025. This movement reflects that investors are beginning to reassess the valuation levels of the tech sector.

The shift in market sentiment highlights the dilemma currently faced by investors: on one hand, inflationary pressures may limit the Fed's room for policy easing, while on the other hand, tech stocks, after significant gains, are now at high valuation levels, raising doubts about further upward momentum.

Charu Chanana, Chief Investment Strategist at Saxo Markets, noted: "After the AI-driven rally, the stock market is becoming increasingly sensitive to any weak macro data or shifts in the Fed's policy path."

Core market trends:

S&P 500 futures fell 0.8%, and Nasdaq 100 futures fell 1.1%.

The Nikkei 225 index briefly rose to a historical high of 52,636.87 points during the session but then turned down 1%; the Korean Composite Index fell 1.7% after a 2.8% surge the previous day that reached a historical peak; the Australian benchmark index fell 0.7%, with an intraday decline of up to 0.9%.

The U.S. dollar index rose 0.03% to 99.90; AUD/USD fell 0.4% to 0.6513;

U.S. Treasury yields remained stable at around 4.10%, hovering near a three-week high.

Gold fell for the third consecutive day, with spot gold dropping to $3,970; spot silver saw an intraday decline of 1%, priced at $47.57 per ounce.

Oil prices fell, with WTI crude down 0.3%, as the market assessed OPEC+'s decision to pause production increases;

Cryptocurrencies saw widespread declines, with Bitcoin down 2% to $104,600 and Ethereum down nearly 3% to $3,500.

The three major U.S. stock index futures extended their declines, with S&P 500 futures down 0.8%, Nasdaq 100 futures down 1.1%, and Dow futures down 0.5%.

Firstly, Palantir's market reaction highlights the excessive tension surrounding expectations in the AI sector. Despite the company raising its annual revenue forecast and exceeding third-quarter sales expectations, its stock price still fell in after-hours tradingThe company's stock price has risen more than 150% this year.

Mandeep Singh, a senior analyst at Bloomberg Industry Research, stated that investors may want more guidance for next year. Palantir provided forecasts for this quarter, but everyone wants to know about 2026.

Second, the conflicting signals recently issued by Federal Reserve officials have intensified market uncertainty regarding the policy direction in December. Federal Reserve Governor Lisa Cook stated, "Looking ahead, policy is not on a predetermined path. We are at a moment where risks are elevated on both ends of our dual mandate. Every meeting, including the one in December, is a meaningful meeting."

San Francisco Fed President Mary Daly said officials should "keep an open mind" about the possibility of a rate cut in December. Federal Reserve Governor Stephen Miran pointed out that policy remains at restrictive levels. These statements continued the cautious tone set by Powell last week.

Shaun Osborne, Chief Currency Strategist at Scotiabank, remarked, "In my years of observing the market, I have never seen such a significant public division among Federal Reserve policymakers regarding the policy outlook."

Notably, the uncertainty surrounding the Federal Reserve's policy comes as U.S. manufacturing data continues to weaken. According to an article from Wall Street Insight, the Institute for Supply Management (ISM) manufacturing index fell 0.4 points to 48.7 in October, remaining in contraction territory for the eighth consecutive month.

Billy Leung, an investment strategist at Global X Management, noted, "As U.S. data softens and Federal Reserve officials maintain policy flexibility, investors are reassessing positions rather than chasing risk."

Bloomberg strategist Mark Cranfield stated that the market is concerned about the concentration of leadership, as even slight fluctuations in large-cap growth stocks or unexpected macro headwinds could trigger excessive declines.

The U.S. dollar index briefly surpassed 100 during the day, marking its first time in three months. The dollar rose 0.2% against the yen, reaching 154.48 yen for the first time since February 13. The euro fell 0.2% to $1.1498, hitting its lowest level since August 1.

Some analysts believe that the strengthening dollar has led traders to reduce bets on recent easing by the Federal Reserve, which has also somewhat suppressed the performance of risk assets.

Cryptocurrencies fell across the board, with Bitcoin down 2% over 24 hours, Ethereum down nearly 6%, Solana down over 9%, and BNB down nearly 7% over 24 hours.

According to an article from Wallstreetcn, under the shadow of the historic deleveraging event in October, the cryptocurrency market is facing a new round of selling pressure. A key indicator shows that demand from large institutional investors is weakening, exacerbating the cautious sentiment in the market.

As the US dollar strengthens, spot gold is under pressure, falling for three consecutive trading days and currently retreating to around $3,970.