Market Jitters: Tech and Crypto Take a Hit

Monday started on a rocky note for investors. Major stock indexes like the Dow, S&P 500, and Nasdaq all took a dip. The Dow dropped by 705 points, while the S&P 500 and Nasdaq fell by 1. 39% and 1. 45% respectively. The fear index, VIX, spiked by 15%, and the Fear and Greed index showed extreme fear, hitting a low not seen since April. Tech stocks have been under pressure due to concerns about their high valuations and massive spending plans. Bitcoin also saw a decline, falling below $92, 000 and erasing its gains for the year. The cryptocurrency has lost over 25% of its value in just six weeks after reaching a record high in early October. The S&P 500 and Nasdaq dipped below their 50-day moving averages, a key support level. Stocks had a volatile week last week, with tech stocks taking a hit before investors bought the dip on Friday. Investors are keeping an eye on Nvidia, which is set to report earnings on Wednesday. Nvidia shares fell by 2. 9% on Monday, affecting the broader market. The recent stock market rally is also being tested as investors adjust to the possibility that the Federal Reserve might pause its interest rate cut cycle. Investors have been rotating out of high-flying tech stocks and moving into sectors that have lagged behind. This rotation is seen as a way to unwind some of the market's frothiness and allow the bull market to catch its breath.