Tech Stocks Get Respite as Silver and Bitcoin Sink: 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. Bitcoin and silver tumbled.
Nasdaq 100 futures edged higher after the index erased its gains for the year over the prior two sessions. Alphabet Inc.’s far higher-than-expected spending forecast lifted stocks tied to AI infrastructure such as Broadcom Inc. in early trading, even as the Google parent slipped 2.8%. S&P 500 contracts rose 0.1%.
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. Sectors that stand to gain from faster economic growth have been the main beneficiaries of the shift.
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 traded near $4,900 an ounce. Bitcoin slumped below $70,000, a level last seen in 2024 amid wider cross-asset stress.
“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 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 amid the selloff in precious metals. US Treasuries were little changed ahead of weekly jobless claims data.
The Bank of England came within a vote of cutting interest rates as policymakers split 5-4 in favor of holding at 3.75%. The pound extended losses after the decision, having been under pressure as a fresh round of political turbulence weighed on UK assets.
Sterling was the worst performer among major currencies, while the yield gap between two- and 10-year gilts hit the widest since 2018.
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 European Central Bank is expected to stand pat on rates later on Thursday. The euro was 0.1% lower.
Trading in Europe signaled that the rotation away from tech into economically sensitive stocks was slowing. The Stoxx 600 headed for its worst day in more than a week as the auto sector led losses, while chemical and retails stocks also underperformed.
Still, in the US, futures for the Russell 2000 index of small caps continued to outperform those for the S&P 500. In another sign that appetite for diversification remained strong, the rolling four-week average inflows into consumer staple stocks have reached a record, according to Bank of America analysts.
These inflows hit the highest level on an absolute basis and by percentage of market capitalization since the bank started tracking client fund flow data in 2008, Jill Carey Hall, an equity and quant strategist, said in a Wednesday note.
“We don’t see it as a big plummet in tech stocks, we see it more as the rest catching up in terms of earnings,” Shanti Kelemen, co-chief investment officer at 7IM, told Bloomberg TV.
What Bloomberg Strategists Say:
“Continued strong earnings growth should eventually draw investors back into tech, while the ongoing rotation into previously unloved sectors reflects a healthy economic backdrop that remains supportive for equities overall.”
— Skylar Montgomery Koning, macro strategist. For full analysis, click here.
Corporate Highlights:
Barrick Mining Corp. named interim chief executive officer Mark Hill to lead the company as it announced plans to spin off its top North American gold assets in an initial public offering. Symbotic Inc.’s shares climbed 12% in premarket trading after the technology firm’s revenue forecast topped estimates. 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. Syngenta Group has started selecting banks for what may be one of Hong Kong’s biggest initial public offerings, according to people familiar with the matter. 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
S&P 500 futures rose 0.1% as of 7:08 a.m. New York time Nasdaq 100 futures rose 0.1% Futures on the Dow Jones Industrial Average rose 0.1% The Stoxx Europe 600 fell 0.4% The MSCI World Index fell 0.1% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.1% to $1.1794 The British pound fell 0.7% to $1.3562 The Japanese yen fell 0.2% to 157.20 per dollar Cryptocurrencies
Bitcoin fell 3.3% to $70,234.52 Ether fell 2.3% to $2,076.39 Bonds
The yield on 10-year Treasuries was little changed at 4.27% Germany’s 10-year yield advanced one basis point to 2.87% Britain’s 10-year yield declined one basis point to 4.53% Commodities
West Texas Intermediate crude fell 1% to $64.47 a barrel Spot gold fell 2.2% to $4,853.82 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling and Rose Henderson.
©2026 Bloomberg L.P.
