The tech-heavy Nasdaq composite slumped 2.9% as a deepening selloff in artificial intelligence stocks dragged major Wall Street indexes lower. The two-day decline pushed the index to its worst month since March 2025, leaving it 7.8% below its record high.
Assessing Portfolio Vulnerabilities Amid Tech and Crypto Volatility
- The Nasdaq index dropped 2.9%, the S&P 500 fell 1.8%, and the Dow industrials retreated more 1.1%, or 572 points.
- Intel shares had their worst day ever, down 29% due to a memory-chip crunch and other hiccups weighed on PC sales.
- Crude oil prices advanced as front-month Brent crude climbed to $117.64 a barrel following strikes in the Middle East and Russia.
Earnings Disappointments and Chip Shortages Collide in Silicon Valley
The tech selloff intensified as quarterly reports from major industry players compounded investor anxieties regarding the artificial intelligence trade. Amazon.com shares dropped about 1.4% despite reporting earnings that were in line with the company’s forecasts and demonstrated booming cloud-computing growth.
Meanwhile, Intel experienced its worst day ever. Shares plummeted 29% as a memory-chip crunch and other hiccups weighed on PC sales.
| Index / Company | Movement / Price | Key Catalyst |
|---|---|---|
| Nasdaq Composite | Declined 2.9% | Broad artificial intelligence sector worries |
| S&P 500 | Declined 1.8% | Spillover selling from technology names |
| Dow industrials | Lost 1.1% (572 pts) | Industrial and cyclical drag |
| Intel | Declined 29% | Memory-chip crunch and PC sales |
| Amazon.com | Declined 1.4% | Market wanting more despite earnings in line with forecasts |
Macroeconomic Pressures Spread Across Global Energy and Digital Assets
Equity markets faced simultaneous headwinds from the digital asset sector following a massive cyberattack on Binance. Hackers absconded with an estimated $6.3 billion from the crypto exchange, triggering broad liquidations across Bitcoin and other cryptocurrencies. Binance suspended transactions while stating users will be made whole.
Energy markets compounded concerns as geopolitical tensions escalated abroad. Front-month Brent crude climbed to $117.64 a barrel after a tanker transiting the Strait of Hormuz came under attack, according to the U.K. Maritime Trade Operations Center. Concurrently, Ukraine struck an oil refinery in Russia, ending a pause that the Trump administration had pushed for.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
