U.S. stock markets finished sharply lower on Thursday as losses in technology shares and a steep selloff in cryptocurrencies combined with fresh signs of labor market weakness to weigh on investor sentiment. The decline extended a volatile week for global markets, pushing major U.S. indices to their lowest levels in weeks.
The S&P 500 fell 1.23 percent, closing at a one-and-a-half-month low, while the Dow Jones Industrial Average declined 1.20 percent. The Nasdaq 100 dropped 1.38 percent, sliding to a two-and-a-half-month low as technology stocks remained under pressure. Futures tracking the S&P 500 and Nasdaq mirrored those losses, reflecting persistent caution among traders.
Technology stocks led the downturn. Semiconductor shares weakened after Qualcomm warned that second-quarter revenue would come in below expectations, sending its stock down more than eight percent. Broader chip names followed lower, while cybersecurity stocks also suffered heavy losses. CrowdStrike dropped about nine percent, dragging peers across the sector as investors reassessed valuations after a strong run earlier in the year.
Economic data added to the negative tone. Challenger job cut announcements surged more than 117 percent year over year in January, marking the highest level of January layoffs since 2009. Weekly initial jobless claims rose to an eight-week high, while December JOLTS job openings unexpectedly fell to their lowest level in more than five years. Together, the figures pointed to cooling conditions in the U.S. labor market.
Federal Reserve commentary reinforced uncertainty around the policy outlook. Fed Governor Lisa Cook said she supported holding interest rates steady, citing risks tilted toward higher inflation and the need to preserve the central bank’s credibility. Her remarks dampened hopes for near-term rate cuts, even as markets continue to price in a modest chance of easing later in the spring.
Cryptocurrencies added another layer of pressure. Bitcoin plunged more than 12 percent on Thursday, falling to a one-and-a-quarter-year low and extending its decline to nearly 50 percent from its October peak. Outflows from U.S. spot bitcoin exchange-traded funds have accelerated, with roughly $2 billion withdrawn over the past month and more than $5 billion over the past three months, according to Bloomberg data.
The crypto rout spilled over into equities tied to digital assets. Shares of Strategy, MARA Holdings, Galaxy Digital, Riot Platforms, and Coinbase all posted double-digit percentage losses, compounding weakness in the Nasdaq 100.
Despite the broader selloff, earnings season continues to provide selective support. Nearly 80 percent of S&P 500 companies reporting so far have beaten expectations, and overall fourth-quarter earnings growth is projected at 8.4 percent year over year. Excluding large-cap technology names, growth is still expected to exceed four percent.
Global markets were also lower. European stocks closed in the red, Asian indices declined, and investors moved into government bonds as a safe haven. U.S. Treasury yields fell sharply, with the 10-year yield dropping to its lowest level in more than two weeks as demand for bonds increased.
With volatility elevated, investors are now focused on upcoming economic data, consumer sentiment readings, and continued earnings reports to assess whether markets can stabilize or if further downside lies ahead.
