Tech Stocks and Bitcoin Plunge Shake Wall Street

Sharp declines marked Wall Street’s trading on Thursday, as both technology stocks and bitcoin faced significant downturns. Bitcoin, in particular, fell to approximately half of its all-time high recorded in the previous autumn. Additionally, concerning reports from the U.S. job market exerted further downward pressure on bond yields.

Market Overview

The S&P 500 index dropped by 1.2%, marking its sixth loss in seven days following a peak at an all-time high. The Dow Jones Industrial Average faced a significant decline, plummeting 592 points, also a decrease of 1.2%. Meanwhile, the Nasdaq composite index fell by 1.6%.

Major Stock Movements

• Qualcomm shares decreased by 8.5% despite surpassing analysts’ profit and revenue expectations. The company’s forecast fell short due to an industry-wide memory shortage affecting production.
• Coinbase Global, a major player in the cryptocurrency market, saw its stock fall by 13.3% as bitcoin prices declined.
• Alphabet’s shares slipped by 0.5% after initially dropping 8%, despite reporting stronger profits than expected. Investors expressed concern over rising expenditures in artificial intelligence.
• Estee Lauder’s stock fell by 19.2%, even after exceeding Wall Street expectations.

Bond Market Reaction

The bond market also responded dramatically. Treasury yields fell, with the 10-year Treasury yield declining from 4.29% to 4.19%. A report indicating a rise in unemployment benefit applications raised concerns about the job market’s health, signaling potential layoffs.

Job Market Insights

• Last week, applications for unemployment benefits increased more than economists had anticipated.
• Layoffs announced by U.S. employers reached a staggering 108,435—the highest monthly total since October.
• Job openings dipped to a five-year low, contributing to worries about the labor market.

Commodity Prices

In commodities, significant volatility was observed as silver plummeted by 9.1%. Gold prices also tumbled, closing at $4,889.50 per ounce, experiencing wild fluctuations after nearly doubling over the previous year.

Bitcoin’s Decline

Bitcoin’s price fell over 12% to below $64,000, down from its peak of over $124,000 in October. This decline influenced related companies, particularly those involved in cryptocurrency trading.

Global Market Response

International market indexes mirrored the downturn, with declines seen across Europe and Asia. The FTSE 100 in London dropped by 0.9%, while the CAC 40 in France and Germany’s DAX also posted losses. South Korea’s Kospi experienced a significant drop of 3.9%, a notable movement from its historic high.

The recent trends in the technology sector and bitcoin instability highlight the ongoing volatility in both financial markets and the crypto landscape.