The week began with a drop in futures for major U.S. indexes, following last week’s crash. Investors are closely watching upcoming Federal Reserve decisions and economic data, fearing a possible recession.
Status of U.S. Index Futures
According to CNBC, early Monday saw S&P 500 futures drop by 0.4%, continuing last week’s decline. Dow Jones futures slid by 184 points and Nasdaq 100 lost about 0.4%. The market expects another difficult trading session after Dow’s worst weekly drop since 2023. The Nasdaq Composite is deeply in correction territory, with the Russell 2000 nearing a bear market. Investors are watching the Fed's meeting closely, expecting interest rates to remain unchanged, but they are particularly interested in Jerome Powell’s remarks, who previously said the Fed is "in no hurry" to cut rates.
Bitcoin Struggles Amid Instability
Bitcoin remains under the $85,000 level, stuck around $80,000 for the past week. Despite turmoil in the markets, the cryptocurrency is down 14% in 2025, sitting 26% below its all-time high. Bitcoin's moves are influenced by two factors: its positive correlation with global money supply (M2) and negative correlation with the U.S. dollar index (DXY). Analysts note this situation might continue through March, with growth expected in the second quarter.
Global Market Reactions
Asian stock markets had mixed reactions: China’s CSI 300 fell, while Hong Kong’s Hang Seng rose 0.77%. Japan's Nikkei 225 increased by 0.93%. South Korea's Kospi also showed growth, up 1.73%. World markets face uncertainty amid lack of clear regulations for crypto investors. Despite claims by the Trump administration of favorable conditions for cryptocurrencies, analysts remain cautious. Current levels and the absence of a clear upward driver pose a threat of further weakness.
Financial markets are entering a period of heightened instability, marked by uncertainty regarding Fed’s decisions and the state of the global market. Key investor concerns remain unanswered, adding weight to expectations and predicted trends.
