U.S. stock futures are muted, with investors eyeing a slump in Bitcoin as well as expectations for an interest rate cut by the Federal Reserve next week. Bitcoin hovers around the flatline, as souring risk appetite dents the appeal of the cryptocurrency. Gold inches lower, hit by a climb in U.S. Treasury yields, while oil prices waver. Elsewhere, Marvell Technology is due to report after the closing bell, with U.S. chipmaker possibly set to provide fresh perspective on the artificial intelligence craze.

1. Futures muted

U.S. stock futures were subdued on Tuesday, after the first trading session of December featured a slide in the price of Bitcoin, a jump in Treasury yields, and tepid U.S. economic data.

By 03:17 ET (08:17 GMT), the Dow futures contract had fallen by 71 points, or 0.2%, S&P 500 futures had dipped by 12 points, or 0.2%, and Nasdaq 100 futures had declined by 58 points, or 0.2%.

The main averages declined on Monday, with sentiment clouded over by figures from the Institute for Supply Management showing that manufacturing sector activity contracted for a ninth straight month in November, suggesting ongoing pressure from sweeping tariffs.

Widespread market expectations for a Federal Reserve interest rate cut later this month remained intact following the data. There is about an 85% chance of a quarter-point reduction at the end of the Fed’s meeting on December 9-10, according to CME FedWatch.

Meanwhile, U.S. government bond yields, which tend to move inversely to prices, rose following Bank of Japan Governor Kazuo Ueda’s comments that economic conditions were supportive of a potential borrowing cost hike in the Asian nation. Japanese and European government bonds also faltered.

At the same time, a steep slide in Bitcoin weighed on stocks exposed to the world’s largest cryptocurrency and marker of broader risk sentiment. Strategy, the biggest holder of digital assets, brought down its 2025 earnings forecast due to weakness in Bitcoin, sending shares in the company lower.

2. Bitcoin hovers around flatline after steep fall

Bitcoin oscillated around the flatline on Tuesday.

The steep selloff on Monday drove the cryptocurrency below $84,000, as a renewed bout of risk aversion hit digital assets at the start of December.

Traders sounded a glum note around Bitcoin, despite a recent rebound from levels near $80,000 late last week.

By 03:32 ET, Bitcoin was trading down 0.4% at $86,480.3. In November, the cryptocurrency shed over $18,000 -- its sharpest slump since 2021. Underscoring its volatility, the token is now down around 30% from an all-time peak reached mere weeks ago in October.

3. Gold dips

Gold prices edged lower as the uptick in U.S. Treasury yields weighed on the metal, with investors turning cautious ahead of a series of key economic indicators and the Fed’s highly anticipated policy decision.

Spot gold slipped 0.4% to $4,213.95 per ounce as of 03:40 ET after touching a six-week high in the previous session. U.S. gold futures traded 0.7% lower at $4,245.25.

The pullback came as benchmark 10-year U.S. Treasury yields hovered near a two-week high, eroding demand for non-yielding bullion and tempering optimism around growing expectations of a near-term Fed rate cut.

Despite the softer tone, the underlying sentiment toward gold remained broadly constructive. Market pricing continues to reflect firm expectations that the Fed could deliver another interest-rate cut next week, with investors betting that softening inflation and signs of cooling labor conditions will give policymakers room to ease.

4. Oil wavers

Oil prices wavered, as Ukraine peace hopes remained fragile, tensions mounted between the U.S. and Venezuela and a group of major producers lifted output levels.

Brent futures dipped 0.2% to $63.04 a barrel, and U.S. West Texas Intermediate crude futures fell 0.1% to $59.27 a barrel by 03:45 ET.

Both benchmarks advanced more than 1% on Monday, with the WTI contract near a two-week high.

Ukrainian President Volodymyr Zelenskiy said on Monday that Kyiv’s priorities were to maintain sovereignty and ensure strong security guarantees, adding that territorial disputes remained the most complicated sticking point.

U.S. envoy Steve Witkoff is due to brief the Russian authorities Tuesday, but an immediate end to the approaching four-year long conflict appears unlikely.

Tensions between Washington and Caracas have also become heightened after U.S. officials signalled they may tighten restrictions on Venezuela, which is seen as having the largest oil reserves in the world, including closing their airspace.

On Sunday, the Organization of Petroleum Exporting Countries and allies, known as OPEC+, reaffirmed a small oil output increase for December but also a pause in increases in the first quarter of next year due to rising fears of a supply glut.

5. Marvell to report

On a relatively light earnings calendar, U.S. chipmaker Marvell Technology will likely be the headliner.

The semiconductor group has been a major competitor of larger rival Broadcom as a provider of custom and networking chips. On Monday, media reports said it is in advanced discussion to acquire startup Celestial AI in a potential cash-and-stock deal worth multiple billions of dollars.

According to The Information, the transaction, whose total price could be higher than $5 billion, may be confirmed as soon as today. By folding in Celestial AI, Marvell is aiming to strengthen its portfolio during a time when the artificial intelligence boom has fueled a spike in demand for computing power.

When it reports after the closing bell on Tuesday, Marvell is seen posting earnings per share of $0.74, according to Bloomberg consensus estimates. Shares of the company, which provided an underwhelming forecast for its data center business in August, have slid by 18% so far this year.