Tech Stock Selloff Stalls as Silver Plunges Again: Markets Wrap
(Bloomberg) — A global slump in technology stocks paused on Thursday as traders debated whether a selloff spanning everything from software shares to chipmakers had gone too far. Silver tumbled anew.
Nasdaq 100 futures rose 0.2% after the benchmark erased gains for the year over the prior two sessions. European stocks dropped 0.4%, dragged lower by auto and energy stocks. S&P 500 contracts fluctuated.
Traders are weighing whether the flight from tech has been excessive, driven by concerns over disruption from artificial intelligence, lofty valuations and vast capital outlays. In premarket trading, Alphabet Inc.’s far higher-than-expected spending forecast lifted stocks tied to the buildout of AI infrastructure such as Broadcom Inc., even as shares of the Google parent slipped 1.6%.
Outside of tech, attention was squarely on precious metals. Silver plummeted as much as 17% as the commodity struggled to find a floor following a historic rout. Gold fell below $4,900 an ounce. Bitcoin touched $70,000.
“Three quarters of software stocks are in oversold territory, and the momentum trade that has been the way to play tech and software last year now is under severe pressure,” said Andrea Gabellone, head of global equities at KBC Securities. “I expect reason to come back to the table and a rebound shortly, probably a selective one.”
The dollar rose 0.2%, hitting the highest level in two weeks. US Treasuries were little changed.
The pound was worst performer among major currencies, while the yield gap between two- and 10-year gilts hit the widest since 2018 as a fresh round of political turbulence weighed on UK assets.
Doubts are building over Prime Minister Keir Starmer’s grasp on power, driving up the risk premium demanded by investors. Starmer has come under growing pressure over his decision to appoint Peter Mandelson as US ambassador, despite knowing about his connection to disgraced financier Jeffrey Epstein.
The Bank of England and European Central Bank are scheduled to announce their latest interest-rate decisions on Thursday, with policymakers at both institutions expected to stand pat. The euro was little changed.
While AI-driven selloffs have surfaced in the past, nothing has rivaled the rout that rippled through stock and credit markets this week. With the US economy proving resilient, investors are rotating into other sectors that stand to benefit from faster growth.
“Things appear somewhat shaky at a surface level, but I’d argue things are considerably more resilient,” said Michael Brown, senior strategist at Pepperstone. “There are both ‘push’ factors driving this churn, as participants take an increasingly skeptical view of the AI theme, as well as ‘pull’ factors amid increasing signs of robustness in the underlying US economy.”
What Bloomberg Strategists Say…
“Silver’s volatility pricing is approaching a record, a reflection of the market’s fear that wild swings will be the only constant in the short term. While the earlier tumble from record levels may have looked steep and prompted dip-buying, spot silver is just at more neutral levels, and far from entering oversold zones.”
— Ven Ram, Markets Live strategist. For the full analysis, click here.
Corporate Highlights:
BNP Paribas SA’s stock rose after it beat expectations and raised some targets, boosting Chief Executive Officer Jean-Laurent Bonnafe and his plan to prop up a lender that has long lagged peers. Alphabet Inc. topped projections for quarterly revenue and outlined an ambitious capital spending plan, far surpassing predictions. Shell Plc said its fourth-quarter profit slumped, undershooting expectations as lower crude prices, a weak oil-trading performance and a struggling chemicals business dented earnings. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.5% as of 9:41 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average fell 0.2% The MSCI Asia Pacific Index fell 1.2% The MSCI Emerging Markets Index fell 1.4% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1786 The Japanese yen fell 0.2% to 157.23 per dollar The offshore yuan was little changed at 6.9405 per dollar The British pound fell 0.6% to $1.3566 Cryptocurrencies
Bitcoin fell 1.6% to $71,483.88 Ether rose 0.3% to $2,132.51 Bonds
The yield on 10-year Treasuries was little changed at 4.27% Germany’s 10-year yield was little changed at 2.86% Britain’s 10-year yield advanced three basis points to 4.58% Commodities
Brent crude fell 1.3% to $68.58 a barrel Spot gold fell 1.7% to $4,882.40 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Anand Krishnamoorthy.
©2026 Bloomberg L.P.
