Tech stocks sell off along with Bitcoin and gold

Markets just experienced a rough week, their biggest turbulence since November, and many popular assets fell sharply at the same time. Tech stocks, Bitcoin, gold, and silver all dropped hard in a matter of days.

Precious Metals and BTC take a hit

Silver plunged 30% in one day — its worst drop since 1980. Gold fell 15%. Bitcoin dropped below $64,000, wiping out all its gains since President Trump’s election. This kind of broad selloff usually signals rising uncertainty among investors.

Trump's Fed nomination

One major trigger for crashing markets was President Trump’s nomination of Kevin Warsh to replace Jerome Powell as Federal Reserve Chair. Investors worry that Warsh, who has previously held hawkish (rate-hiking) views, could change the direction of interest rate policy. Even though some believe he may cut rates more aggressively, the sudden change created uncertainty — and markets dislike uncertainty.

The stock market suffered a tech-led selloff. The S&P 500 went negative, and software stocks alone lost over $1 trillion in value in just one week. The Nasdaq and S&P 500 fell for three consecutive days, while the Dow dropped nearly 600 points in one session.

AI a concern?

Artificial intelligence (AI), which had been one of Wall Street’s favorite investment themes, suddenly became a concern. After Anthropic announced new AI tools for legal automation, investors started worrying that AI may replace existing businesses rather than simply improve them. That fear triggered heavy selling across software, legal tech, and financial services stocks.

The selling then spread to semiconductor companies. AMD fell 17% in one day after weak earnings. Micron, Palantir, and Nvidia also dropped sharply. Amazon slid 10% after announcing very high spending plans for the year.

Rotation out of tech to value stocks?

We’re now seeing a rotation in the market. Investors are moving money out of high-growth tech stocks and into more stable “value” sectors like energy, consumer staples, industrials, and financials. Energy is currently the best-performing sector this year. International markets in Japan, Europe, and China are also outperforming the U.S.

Warning signs in the U.S. labor market?

Meanwhile, the labor market is weakening. Job growth came in below expectations, layoffs have surged, and job openings are declining. This adds another layer of concern for investors.

The Bottom Line

Corrections are normal. Every bull market experiences pullbacks. The Fear & Greed Index has fallen from 51 to 45. That shows rising caution, but not full panic.

Instead of panic selling, focus on preparation. Make a list of high-quality companies you would like to own long term. If fear increases and strong businesses become undervalued, that could create opportunity.

Successful investing isn’t about reacting emotionally. It’s about staying patient, disciplined, and ready when opportunity appears.