Thursday’s U.S. stock sell-off ground the narrative that “AI capital spending only goes up” into the dirt.
U.S. stocks suffered their sharpest one-day sell-off in 19 months on Thursday: the Nasdaq plunged 5.52% to close at 24,315, falling more than 10% from its October 6 record closing high and officially entering a technical correction. The S&P 500 dropped 4.36% to 7,353.73, wiping out about $3 trillion in market value in a single day, while the Dow fell 3.44% to 51,523.06. After Democrats won control of Congress in the midterm elections, markets grew concerned about tighter regulation of AI data centers. The Philadelphia Semiconductor Index tumbled more than 12%, Nvidia fell over 9%, IREN and Applied Digital each dropped more than 14%, and CoreWeave slid nearly 10%.
This is a brake on global risk appetite, not a problem with any particular crypto project. During moments of panic, the correlation between the Nasdaq and BTC and ETH typically rises in tandem, and highly leveraged positions can be forcibly unwound. A bearish outlook does not mean panic-selling everything; the key is to resist the urge to chase rallies or add leverage.
Two scenarios to watch: first, whether U.S. stocks can find support at key moving averages and whether Nvidia and the Philadelphia Semiconductor Index can stabilize; second, whether crypto markets see net outflows or stablecoins trade at a discount. If U.S. stocks continue to sell off, BTC and ETH are more likely to follow them lower than to make independent moves.
Are you more focused on whether Nvidia and the Philadelphia Semiconductor Index can find a bottom first, or on whether BTC holds up relatively well on a day of panic?
Source: PANews
Image 1: Black Thursday for U.S. stocks: $3 trillion wiped out overnight, bull market under pressure, risk assets sound the alarm · Image accompanying the source report
Image source: https://www.panewslab.com/zh/articles/01a1ae46-3ae1-76d1-a698-12bcdd4de579
U.S. stocks suffered their sharpest one-day sell-off in 19 months on Thursday: the Nasdaq plunged 5.52% to close at 24,315, falling more than 10% from its October 6 record closing high and officially entering a technical correction. The S&P 500 dropped 4.36% to 7,353.73, wiping out about $3 trillion in market value in a single day, while the Dow fell 3.44% to 51,523.06. After Democrats won control of Congress in the midterm elections, markets grew concerned about tighter regulation of AI data centers. The Philadelphia Semiconductor Index tumbled more than 12%, Nvidia fell over 9%, IREN and Applied Digital each dropped more than 14%, and CoreWeave slid nearly 10%.
This is a brake on global risk appetite, not a problem with any particular crypto project. During moments of panic, the correlation between the Nasdaq and BTC and ETH typically rises in tandem, and highly leveraged positions can be forcibly unwound. A bearish outlook does not mean panic-selling everything; the key is to resist the urge to chase rallies or add leverage.
Two scenarios to watch: first, whether U.S. stocks can find support at key moving averages and whether Nvidia and the Philadelphia Semiconductor Index can stabilize; second, whether crypto markets see net outflows or stablecoins trade at a discount. If U.S. stocks continue to sell off, BTC and ETH are more likely to follow them lower than to make independent moves.
Are you more focused on whether Nvidia and the Philadelphia Semiconductor Index can find a bottom first, or on whether BTC holds up relatively well on a day of panic?
Source: PANews
Image 1: Black Thursday for U.S. stocks: $3 trillion wiped out overnight, bull market under pressure, risk assets sound the alarm · Image accompanying the source report
Image source: https://www.panewslab.com/zh/articles/01a1ae46-3ae1-76d1-a698-12bcdd4de579
