U.S. stock markets closed sharply lower on Thursday as renewed weakness in technology shares and a steep decline in cryptocurrencies unsettled investor sentiment and pushed major indexes to multi-month lows.
The S&P 500 ended the session down 1.23%, while the Dow Jones Industrial Average fell 1.20%. The Nasdaq 100 dropped 1.38%, marking its lowest level in more than two months as selling pressure intensified across large-cap growth stocks. Futures tied to U.S. indexes mirrored the move, reflecting broad risk aversion heading into the end of the week.
Technology stocks led the decline, with chipmakers and cybersecurity firms under heavy pressure. Qualcomm shares slid more than 8% after the company forecast weaker-than-expected second-quarter revenue, dragging down peers across the semiconductor sector. Cybersecurity names also sold off aggressively, with CrowdStrike tumbling roughly 9% amid a broader retreat from high-valuation software stocks.
Signs of cooling in the U.S. labor market added to investor anxiety. January job cuts reported by Challenger surged to their highest level for the month since 2009, while weekly initial unemployment claims rose to an eight-week high. At the same time, December job openings fell to their lowest level in more than five years, reinforcing concerns that economic momentum may be slowing faster than anticipated.
Comments from Lisa Cook highlighted the policy dilemma facing the Federal Reserve. She reiterated support for holding interest rates steady, noting that inflation risks remain tilted to the upside and emphasizing the importance of restoring price stability after years of above-target inflation.
Cryptocurrency markets saw even steeper losses. Bitcoin plunged more than 12% on the day, falling to its lowest level in over a year and extending a broader downtrend that has now erased nearly half of its value since October’s peak. Investor withdrawals from U.S. spot Bitcoin exchange-traded funds have accelerated, with billions of dollars exiting over the past three months, according to market data compiled by Bloomberg.
The crypto selloff rippled through equity markets, hammering companies with direct exposure to digital assets. Shares of Strategy, MARA Holdings, Coinbase and Riot Platforms all posted double-digit losses as declining crypto prices weighed on balance sheets and future revenue expectations.
Bond markets moved in the opposite direction as investors sought safety. U.S. Treasury prices rose sharply, pushing the 10-year yield down to its lowest level in more than two weeks. Demand for government debt was supported by weaker labor data and falling inflation expectations, with breakeven inflation rates also edging lower.
Overseas markets reflected similar caution. European equities closed broadly lower, while Asian benchmarks in China and Japan also finished the session in negative territory. In Europe, mixed economic data and steady central bank policy decisions added to uncertainty, even as officials signaled a willingness to ease policy later in the year if conditions allow.
Looking ahead, investors are turning their attention to earnings reports and upcoming economic releases. Corporate results have so far exceeded expectations for most companies reporting this quarter, but market participants remain sensitive to signs that slowing growth or persistent inflation could alter the path of monetary policy in the months ahead.
