The weeklong selloff engulfing technology stocks and cryptocurrencies showed no sign of slowing as weak jobs data exacerbated a rout spurred by concern over the impact of artificial intelligence on software valuations. Alphabet Inc. became the latest to drop after reporting earnings. Bitcoin took one of its biggest tumbles yet.
Equities extended their slide from the brink of a record, with the S&P 500 falling about 1% and the Nasdaq 100 set for its worst three-day rout since April. The world’s most-popular digital token sank below $70,000 in a plunge that cut its value nearly in half since October. Treasuries climbed, sending two-year yields to the lowest in almost a month. Silver plummeted as much as 18%.
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The decline in software firms, chipmakers and all things related to AI coincided with persistent fears about whether massive investments on the technology will pay off. A clear example was the reaction to results from Google’s parent, which sank 4% after outlining an ambitious spending plan even as revenue beat estimates. Amazon.com Inc. reports earnings later Thursday.
Heavy selling is starting to put a visible dent in equity benchmarks whose ascent had pushed valuations to some of the highest levels since the 2000 dot-com peak. The Nasdaq 100 has seen more than $1 trillion wiped out since last Wednesday, the day Federal Reserve policymakers signaled reluctance to lower rates again anytime soon.
