(SeaPRwire) – By: Christian Pierce
The stock market’s recent sell-off isn’t just a hiccup for AI heavyweights like Nvidia. We’re staring down a dual collapse in growth tech and crypto. Institutional money is fleeing both asset classes. Geopolitical tensions add a volatile wildcard no one saw coming just a month ago.
Last week, the S&P 500 fell nearly 2% while the Nasdaq dropped 4.6%. Nvidia and Alphabet each slid more than 8%. Meta, Apple and Amazon fell over 4%. SpaceX shares plunged 17%. The Dow held steady with a 0.6% weekly gain, propped up by healthcare stocks like Merck, which climbed 13%, and Johnson & Johnson, up 11.5%. Over in crypto, Bitcoin traded below $60,000 on Monday, down 0.4% on the day. It failed to break above that level over the weekend, hitting sharp selling pressure. Bitcoin is down more than 30% this year, on track for a 13% quarterly loss. That would mark only the third back-to-back quarterly decline in its history. US spot Bitcoin ETFs have seen seven straight weeks of net outflows. $1.8 billion left those products last week alone, pushing monthly outflows past $4 billion. Over $180 million was liquidated from crypto markets in 24 hours, mostly from long positions. Ethereum fell 0.2% to around $1,564. Solana was one of the few bright spots, rising around 1.2%, while Dogecoin dropped 2.2%. The Crypto Fear & Greed Index hit “Extreme Fear” on Monday. The total global crypto market cap fell 3.38% in 24 hours to $2.02 trillion. Analyst Ali Martinez warned that if whale selling continues, Ethereum could drop to $1,237 or even $1,089. Analyst Michaël van de Poppe said markets holding up despite the fear is a pretty interesting signal, adding that a move back above $61,000 could target $65,000 next. Geopolitical tensions between the US and Iran over the Strait of Hormuz rattled markets over the weekend. A reported ceasefire lifted stock futures slightly Monday. Brent crude rose 0.8% to $72 a barrel, while West Texas Intermediate gained 1.1% to $70. Markets are pricing in more Fed rate hikes after strong inflation and labor data. The July jobs report has been moved up due to the Independence Day holiday.
The end game here is a prolonged period of elevated market volatility. The AI stock rally was built on expectations of low interest rates for the foreseeable future. Now, the Fed is signaling rates will stay higher for longer, pulling the rug out from under growth assets. For crypto, the ETF inflows that were supposed to signal mainstream institutional adoption have reversed completely. Investors are realizing digital assets still lack the fundamental stability to hold up during hawkish monetary policy. The divide between defensive healthcare stocks and high-growth assets will only widen. Traders and investors will need to pivot quickly to protect their portfolios from further downside.
Author bio: Christian Pierce, a chief financial columnist and markets commentator with 15 years covering global equities and digital asset trends.