BREAKING: Nasdaq leads sharp sell-off as tech rout spreads to crypto and metals
The Nasdaq is sliding hard today, pulling the broader market lower as a tech-led sell-off accelerates. Risky assets are under pressure across the board. Bitcoin slipped below 70,000, and silver is getting hit again. This is a clean risk-off move, and it is picking up speed.
Market snapshot
Selling started in tech and did not stop. The Nasdaq is taking the brunt, with megacap names and chip stocks dragging the tape. The S&P 500 is in the red. The Dow is weaker too. Futures hinted at this overnight, and cash trading confirmed it.
Investors are cutting exposure to the high-growth parts of the market. The trigger is fresh guidance on AI spending from big platforms. The message is simple. The AI buildout will cost more, take longer, and weigh on margins in the near term. That is a problem for stocks that were priced for smooth and fast payoffs.
Why AI capex headlines rattled markets
The market had embraced a neat story. Spend big on AI now, enjoy fat profits soon. New signals from one of the largest AI players broke that script. Our reporting shows Google flagged heavier AI investment than investors expected. That raised a hard question. How quickly will all this spending turn into cash flow?
For tech investors, return on investment is now front and center. If capex rises faster than revenue for a few quarters, earnings per share will feel it. That is enough to shake confidence in the AI trade of the year.
The earnings math just changed
Capital spending is not bad. It is necessary. But the timing matters. If AI costs land before AI revenue scales, profit margins compress. Analysts will revisit models for cloud, search, and ad budgets tied to AI tools. Chipmakers face a similar issue. Orders remain strong, but hyperscalers are pushing for price, power efficiency, and proof of value.
The market is shifting from AI excitement to AI accountability. Expect more questions about cash returns, not just growth stories.
Cross-asset moves scream risk-off
This is not just a tech story. Bitcoin dropped below 70,000. Silver sold off sharply. Those are classic risk barometers. When both fall with growth stocks, it signals de-risking, not a sector wobble.
What is driving the cross-asset slump:
- Higher uncertainty around AI returns and tech margins
- Positioning that leaned heavy into growth and chips
- Tightening financial conditions as liquidity fades at the margin
- A flight to cash while investors reassess risk
Investors often sell what is liquid first. Mega cap tech, crypto, and metals fit that bill. That helps explain the speed of the move.
What it means for portfolios
The AI theme is intact over the long run. The pathway is messy in the short run. Markets are doing what they do when narratives get tested. They reset prices and demand proof.
For diversified portfolios, this pullback forces choices. Do you buy the dip in quality AI names, or do you wait for estimates to come down? Balance sheets matter now. So do free cash flow and pricing power. Companies that can fund capex from cash, without heavy dilution or debt, will hold up better.
Focus on profitable growth, not just growth. Seek firms with clear AI payback, steady cash flow, and disciplined spending.
Defensive sectors have a bid as money rotates. Utilities, consumer staples, and parts of healthcare look steadier. Even so, the first step in a risk-off wave is often to raise cash, not to rotate. Expect choppy trade and sharper intraday swings.
What to watch next
Earnings calls will decide the next leg. Management teams must explain AI costs, timing of returns, and pricing strategy. Look for details on compute intensity, unit economics, and when customers will start to ramp paid usage. Watch cloud backlog and AI attach rates to see if demand is translating into revenue.
Keep an eye on:
- Guidance revisions on capex and margins from top platforms
- Orders and lead times for high-end chips and networking gear
- Cash flow trends at AI heavyweights
- Volatility spikes that signal forced selling versus orderly repositioning
If companies can show proof of return, the market will stabilize. If not, the Nasdaq could see another leg lower as estimates reset.
The bottom line
The Nasdaq is under pressure because the cost of the AI future just got real. Cross-asset declines confirm a broad risk-off turn, not a single stock scare. The long AI cycle remains in place, but the market is no longer paying up for promises. It wants receipts. Investors who separate durable cash generators from high-burn stories will be in the best position when the dust settles.
