Investing.com -- U.S. inflation data will shape expectations for the path of Federal Reserve interest rates and test the record stock market rally, the European Central Bank meets, and could Bitcoin be poised to go mainstream after breaking through the $100,000 barrier? Here's your look at what's happening in markets for the week ahead.

1. US CPI

The U.S. is to publish November data on consumer price inflation on Wednesday that will give Federal Reserve officials a last look price pressures ahead of their final policy meeting of the year the following week.

The Fed has cut interest rates by 75 basis points since September and markets are currently expecting another 25-bps cut at the December 17-18 meeting.

Bets that the Fed will cut rates again were bolstered by Friday’s stronger than expected jobs report, but any indication that progress in returning inflation to the Fed’s 2% target has stalled would likely see markets revise expectations.

Concerns over a potential revival in inflation have also returned to the fore because of President-elect Donald Trump's plans to raise tariffs on imports. Tariffs are expected to be inflationary.

2. Stock market test

The S&P 500 and Nasdaq Composite rose to record closing highs on Friday as expectations for further Fed rate cuts during a period of robust economic growth continued to underpin investor sentiment.

That scenario historically has produced strong equity gains, and it was supported by Friday's jobs data.

Wednesday’s inflation report will test the strength of U.S. stocks rally into the year-end. If the data comes in hotter than expected the Fed could temper expectations around the future path of rate cuts.

Analysts are already expecting a more gradual pace of rate cuts next year as policymakers assess Trump's fiscal policies after he takes office on January 20.

3. ECB rate cut

The ECB holds it final policy meeting of the year on Thursday with economists overwhelmingly expecting another 25-bps rate cut - which would be the fourth such cut this year.

Eurozone inflation ticked higher in November, but still appears to be heading towards the ECB’s 2% target.

The ECB is also to publish updated growth and inflation forecasts, which are likely to be revised lower for next year.

Since the ECB’s last meeting in October tariff risks for Europe have risen after Trump’s election win; France and Germany are grappling with political turmoil; business activity has slowed sharply, and the euro has weakened.

ECB President Christine Lagarde has said a trade war would be a "net negative for all", not just countries targeted by U.S. tariffs.

4. Bitcoin record

Bitcoin, the world's largest digital currency, surged past the $100,000 milestone for the first time on Thursday after Trump announced crypto veteran Paul Atkins as his pick to head the Securities and Exchange Commission.

Trump also announced that he plans to make former top PayPal executive and crypto evangelist David Sacks "White House A.I. & Crypto Czar," raising doubts over who exactly will drive policy.

While both have urged regulators to adopt a more lenient approach, neither appears to have taken a position about whether crypto tokens should be considered securities, commodities or utilities - a key issue that will shape the industry's regulatory framework.

While numbers like $200,000 are already being mentioned for 2025, the history of Bitcoin is littered with record rallies and equally stunning reversals.

5. Oil prices

Oil prices fell by more than 1% on Friday, cementing weekly losses amid expectations for a supply surplus next year on the back of weak demand despite an OPEC+ decision to delay output hikes and extend production cuts to the end of 2026. 

Brent crude lost over 2.5% for the week, while crude oil WTI futures declined by 1.2%.

OPEC+ agreed on Thursday to delay the start of planned output increases by three months to April 2024 and extended its existing production cuts until the end of 2026. But energy traders said the move failed to offset worries about weak demand, particularly in China, the world's second-largest oil consumer.

Oil prices have been rangebound in recent weeks, with geopolitical tensions in the Middle East partially offset by concerns over global economic growth and China's sluggish recovery.