Bitcoin and Asian Markets Tumble in Tech-Driven Sell-Off
In a significant market downturn, Bitcoin plunged up to 8% and South Korea's Kospi index sank nearly 4% on Thursday, driven by a widespread sell-off in technology stocks. This latest round of jitters over high valuations for tech shares has sent shockwaves across global financial markets, with Asian shares retreating and US futures edging lower.
Bitcoin and Major Indexes Experience Sharp Declines
Bitcoin was trading near $71,000 early Thursday, down 7% after crashing to about $69,000 earlier in the day, according to CoinDesk. This marks its lowest level since November 2024, highlighting the volatility in the cryptocurrency market. In share trading, Tokyo's Nikkei 225 shed 0.9% to 53,818.04, while the Kospi in South Korea skidded 3.9% to 5,163.57.
Shares in South Korea's biggest company, Samsung Electronics, lost 5.9%, and chip maker SK Hynix plunged 6.7%, underscoring the pressure on tech giants. Chinese markets also retreated, with Hong Kong's Hang Seng falling 0.3% to 26,761.00 and the Shanghai Composite index giving up 0.6% to 4,079.68. Australia's S&P/ASX 200 fell 0.4% to 8,889.20, while Taiwan's Taiex lost 1.5%.
US Market Trends and Tech Stock Pressures
On Wednesday, the S&P 500 fell 0.5% for its fifth modest loss in the last six days, closing at 6,882.72. The Dow Jones Industrial Average rose 0.5% to 49,501.30, but the Nasdaq composite sank 1.5% to 22,904.58. More than twice as many stocks rose within the S&P 500 than fell, but sinking technology stocks weighed on the index for a second straight day.
Advanced Micro Devices dropped 17.3% even though the chip company reported a stronger profit for the latest quarter than analysts expected. It also gave a forecast for revenue for the start of 2026 that topped analysts' expectations, but that may not have satisfied investors after its stock doubled over the last 12 months. Tech stocks are under pressure even when they deliver stronger-than-expected profits, as their prices have shot higher and they've grown to dominate markets.
Companies like software makers are struggling with questions about whether they'll lose in the future to competitors powered by artificial-intelligence technology. Uber Technologies also dragged on the market after falling 5.1%, as the ride-hailing company reported results for the latest quarter that fell short of analysts' expectations and gave a forecast for profit in the current quarter that was below expectations.
Mixed Performances and Broader Market Movements
Some tech stocks nevertheless climbed, including a 13.8% rise for Super Micro Computer, which sells AI servers and other equipment and delivered a stronger profit for the latest quarter than analysts expected. Walmart edged up by 0.2%, a day after its total market value topped $1 trillion for the first time, breaking into a small club dominated by Big Tech companies like Nvidia and Apple.
In other dealings early Thursday, US benchmark crude oil fell $1.37 to $63.77 per barrel, and Brent crude, the international standard, lost $1.47 to $67.99 per barrel. Prices of precious metals resumed their roller coaster ride, with gold falling 0.3% and silver dropping 7%. Their prices had surged as investors looked for safer places amid worries from tariffs to a weaker US dollar, but critics said they rose too far, too fast and were due for a pullback.
The dollar rose to 157.00 Japanese yen from 156.80 yen, and the euro fell to $1.1790 from $1.1804, reflecting broader currency market adjustments in response to the tech-led sell-off.
