ASX Set to Drop as Wall Street Tech Sell-Off, Bitcoin Plunge Intensify
The Australian share market is poised for significant losses today, with ASX futures slumping by 0.7%. This downturn follows a volatile sell-off on Wall Street, particularly in the technology sector.
Impact of Wall Street Sell-Off on ASX
Today’s declines in the ASX are influenced by substantial falling stock prices among major tech companies. Notable losses include:
- Nvidia: -4.3%
- Microsoft: -3%
- Meta: -2.8%
- Amazon: -2.5%
Investors are reallocating their portfolios, moving away from high-flying AI and tech stocks. They are now focusing on stocks that are seen as tied to economic recovery. Companies showing gains include:
- Walmart: +2.6%
- Caterpillar: +1.2%
- Johnson & Johnson: +1.5%
The S&P 500 index decreased by 1.1%, and the Nasdaq Composite, which emphasizes tech stocks, fell nearly 2% by 3:30 PM local time.
Bitcoin Plunge Intensifies
In parallel, the cryptocurrency market is facing severe challenges. Bitcoin has plummeted to a 16-month low, reflective of significant concerns in ‘cryptoland’.
Details of Bitcoin’s decline are as follows:
- Lowest price: $US72,885
- Current price: $US75,930 (a drop of 3.2%)
- Previous record high: Around $US124,000 in October
This downturn signifies that Bitcoin has erased all gains achieved since the 2024 US election, following Donald Trump’s pro-crypto stance. The current market sentiment is described as “risk-off,” driven by geopolitical uncertainties and the postponement of critical US economic data releases due to a partial government shutdown.
Overall, the prevailing themes highlight a shift away from risky assets, including cryptocurrencies and tech stocks. The landscape is changing as investors brace for further developments in the economic environment.
