Headline: Tech Slump Deepens as Rate-Cut Optimism Fades; Bitcoin Slides While Gold Outperforms
A sharp risk-off turn gripped global markets, with major U.S. indexes logging their worst day in a month as hopes for near-term Federal Reserve rate cuts cooled. Futures were steady overnight, but sentiment remained fragile amid a broad tech sell-off and a flight to defensive assets.
High-growth technology and AI-related stocks led the retreat, with names such as Nvidia, Super Micro Computer, and Palantir pressured by mounting valuation concerns. As investors reassessed the path of monetary policy, rate-cut expectations slipped and U.S. futures held flat into the Asia session. Across the region, the British pound softened while oil, the New Zealand dollar, and precious metals advanced, underscoring a preference for commodities and perceived safe havens.
Crypto markets mirrored the risk reset. Bitcoin fell 4–9% into the $98k–$99k area, briefly dipping below six-month lows, as on-chain data pointed to long-term holders distributing roughly 815,000 BTC. Heightened credit risk within crypto added to the pressure, even as some market indicators still imply a slightly higher probability of a rebound toward $115k than a slide to $85k. Gold and silver rallied 4–9%, extending their outperformance; some market watchers note that gold’s lead has historically preceded renewed interest in Bitcoin with a lag. Meanwhile, ongoing warnings about sovereign debt risks and stretched valuations suggest volatility could persist, particularly if the Fed’s timeline for policy easing continues to lengthen.
Key Points: – U.S. stocks posted their worst session in a month as rate-cut expectations diminished. – AI and tech leaders, including Nvidia, Super Micro Computer, and Palantir, slid on valuation concerns. – Asia session: GBP weakened, while oil, NZD, gold, and silver moved higher. – Bitcoin declined into the $98k–$99k range, with long-term holders selling an estimated 815,000 BTC. – Crypto faced rising credit risk; gold and silver outperformed with 4–9% gains. – Sovereign debt warnings and stretched valuations point to continued market volatility.
