Wall Street reversed its recent momentum on Friday, pushing the S&P 500, Nasdaq, and Dow Jones lower as investors retreated from a stretched technology rally. The sell-off gathered pace alongside rising Treasury yields, with the 30-year yield moving above 5.1% amid inflation worries. Oil surged after Trump’s comments on Iran, lifting West Texas and Brent above key thresholds. Market hopes were also dampened by a Trump-Xi summit that delivered fewer breakthroughs than traders expected.
Investor Michael Burry, known for “The Big Short,” says the Nasdaq 100 could be heading for a sharp downturn. He compares today’s “parabolic” tech surge to the dot-com bubble’s peak, citing surging chip stocks and stretched valuations. Burry argues Wall Street may be overestimating earnings and urges caution, including profit-taking, ahead of a likely correction.
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New-age tech stocks ended the week higher amid Q4 FY26 earnings optimism, with 40 of 56 names gaining. ideaForge led the charge, soaring 33.74% after a sharp profit swing, while Urban Company fell nearly 8% on widening losses in its InstaHelp quick services business. Market cap for covered firms also climbed, despite FIIs selling and West Asia-driven volatility.
With global markets at record highs driven by AI-fueled tech enthusiasm, billionaire investor Paul Tudor Jones says the current phase still has room to run for about a year or two. Drawing parallels to Microsoft’s early rise and the internet boom, he also cautions that this momentum could eventually flip into a major downturn similar to the dot-com bubble’s collapse.
Chinese blue-chip stocks surged to a four-year high as investors piled into technology shares fueled by global artificial intelligence optimism. Domestic economic resilience also helped sentiment, with services activity expanding faster in April. Huawei’s expected AI chip revenue growth added momentum, while energy stocks fell as Middle East tensions eased.
Asian markets bounced back as tech shares surged on strong earnings, boosting investor risk appetite. Japan stepped in to support the yen after its sharp slide, while oil eased from four-year highs despite ongoing geopolitical stress. Central banks’ hints at possible rate hikes also swayed currencies, keeping traders cautious.
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Despite a big Friday jump in the S&P 500 and Nasdaq, the Dow Jones is lagging. Tech stocks are driving most of the gains, lifting the broader indexes where growth and software-heavy names carry more weight. The Dow’s different mix of legacy industrial and financial stocks can make it move differently, even on the same trading day.
The S&P 500 closed at a record high, accelerating a market rally powered by technology stocks. Investors remain upbeat as company earnings hold up and growth expectations stay firm, even as global tensions linger in the background. The index has surged by roughly $7.6 trillion since March, and optimism is growing that the uptrend can continue if earnings momentum persists.
Bitcoin took a sharp nosedive on Thursday, dragging the broader crypto market as value slid by about $2 trillion. A wave of red spread beyond digital assets, hitting tech stocks and even precious metals. The selloff deepened as investors grew wary over potential shifts in Federal Reserve policy, undercutting risk appetite across markets.
Bitcoin fell to a 16-month low, hovering close to the $60,000 level as investors retreat from higher-risk assets. The pressure follows broad selloffs in technology stocks that have spilled into crypto markets. Ether also dropped, and the wider cryptocurrency sector has erased trillions of dollars from its all-time high, underscoring a tough stretch for digital assets.
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Since October 2024, global crypto markets have shed a staggering $2 trillion, with Bitcoin and Ether both sliding sharply. Analysts point to institutional investors pulling out of crypto exchange-traded funds as a key catalyst, compounded by a broader weakness in tech stocks. The shakeout raises urgent questions on what investors should do next.
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