New York
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\n A nervous mood swept through markets Tuesday as stocks stumbled and bitcoin hit its lowest level since November 2024.\n <\/p>\n
\n The Dow closed lower by 167 points, or 0.34%, after tumbling as much as 575 points earlier. The broader S&P 500 fell 0.84%. The tech-heavy Nasdaq sank 1.43%. The S&P and Nasdaq each had their worst day in two weeks as technology and software stocks led declines.\n <\/p>\n
\n In a sign of the risk-averse mood, bitcoin earlier slumped nearly 7% and fell just below $73,000, hitting its lowest level since President Donald Trump\u2019s victory in the presidential election. Bitcoin then slightly rebounded and traded around $76,800.\n <\/p>\n
\n Bitcoin is down roughly 40% since hitting a record high above $126,000 in October. The Trump administration has touted pro-crypto policies<\/a>, with the president promising to make the United States the \u201ccrypto capital of the world.\u201d\n <\/p>\n \n Despite support from Washington<\/a>, bitcoin has languished since its October peak. The world\u2019s largest cryptocurrency by market value has whipsawed in price and struggled to regain ground amid a series of sell-offs<\/a>.\n <\/p>\n \n While stocks and bitcoin were lower, gold and silver surged higher, extending recent bouts of volatility. Gold futures gained 6.7% to $4,965 a troy ounce. Silver futures soared 10% to roughly $85 a troy ounce.\n <\/p>\n \n Gold, considered a haven amid uncertainty, has now outpaced bitcoin across the past five years, according to FactSet data.\n <\/p>\n \n \u201c[Bitcoin\u2019s] divergence from gold is a sign that most investors currently view gold as the dominant store-of-value asset, especially in periods of currency debasement, geopolitical turmoil and uncertainty over macroeconomic conditions,\u201d Gerry O\u2019Shea, head of global market insights at Hashdex, said in an email.\n <\/p>\n \n O\u2019Shea said he expects continued near-term volatility for bitcoin as the crypto industry seeks more regulatory clarity and crypto integrates into mainstream financial infrastructure, but he thinks bitcoin\u2019s appeal will increase.\n <\/p>\n \n US stocks stumbled as Wall Street digested recent developments in the artificial intelligence industry.\n <\/p>\n \n AI startup Anthropic on Tuesday unveiled new capabilities for its Claude chatbot, including assisting and performing tasks associated with legal work. The announcement stoked fears of disruptions to software companies that provide data and services to the legal industry.\n <\/p>\n \n The sell-off comes amid recent nerves about AI eating into software companies\u2019 business models and threatening market share. Salesforce shares (CRM<\/a>) fell 6.85%.\n <\/p>\n \n Some tech stocks are also taking a pause as investors look for opportunities in other sectors, according to Daniel Skelly, head of Morgan Stanley\u2019s wealth management market research and strategy team.\n <\/p>\n \n \u201cIt\u2019s notable that rotation is also happening within tech itself, as investors flee software because of continued AI-disruption fears, and move toward other momentum winners, like memory,\u201d Skelly said.\n <\/p>\n \n The Nasdaq, which last hit a record high in October, is down 3.18% from its peak. The Dow, which just hit a record high in January, is less than 1% from its peak.\n <\/p>\n \n Tech stalwarts Microsoft (MSFT<\/a>) and Amazon (AMZN<\/a>) fell 2.87% and 1.79%, respectively. Nvidia (NVDA<\/a>), the star of the AI trade, fell 2.84%, weighing on markets.\n <\/p>\n \n There have been lingering concerns on Wall Street about just how profitable the AI boom will prove to be, and whether companies\u2019 enormous amounts of spending will ultimately be justified. Microsoft shares dropped 10% on Thursday, erasing nearly $360 billion in market value, after the company reported less growth in cloud sales than expected and increased AI spending.\n <\/p>\n \n Wall Street is in the midst of corporate earnings season, and traders are digesting results for the last quarter. Investors are increasingly scrutinizing spending forecasts and focusing on how companies will be able to turn a profit to justify their expenditures.\n <\/p>\n \n While markets were lower, Walmart shares (WMT<\/a>) gained 2.94%, lifting the company\u2019s market value above the $1 trillion mark for the first time.\n <\/p>\n \n Markets extended their losses and volatility picked up after reports that the United States shot down an Iranian drone<\/a> that had been approaching a US aircraft carrier.\n <\/p>\n