Global markets reel as tech stocks, cryptocurrencies, and silver tumble, raising fears of a multi-asset correction after a year of extraordinary gains
Global financial markets are under pressure, with technology stocks, cryptocurrencies, and precious metals all seeing sharp declines. Investors are debating whether this is a short-term correction or the deflation of long-standing price bubbles.
The sell-off follows a year of extraordinary gains across multiple asset classes. Tech equities soared on the back of post-pandemic stimulus and AI optimism.
Cryptocurrencies reached new highs, while silver and other precious metals enjoyed historic rallies.
But recent downturns have left market participants surprised and concerned. Major US indices have fallen for several sessions. On Thursday, the S&P 500 dropped 1.2 per cent, the Nasdaq fell 1.6 per cent, and the Dow Jones lost 1.2 per cent.
Tech sector leads the decline
The technology sector has borne the brunt of the sell-off. Software and semiconductor companies were particularly hard hit as investors reassessed valuations after months of aggressive gains. Weak labor market data has added to the selling pressure, while rising yields are reducing support for high-growth stocks, triggering a rotation out of riskier, high-beta assets.
Stocks that surged during the AI-led rally are now under scrutiny, as earnings growth fails to meet lofty market expectations. Some tech giants are reporting slowing revenue growth, prompting analysts to cut price targets and fueling further declines.
Cryptocurrency volatility persists
Bitcoin fell below $60,000 on Friday before recovering to the mid-$60,000 range, marking its weakest weekly performance since late 2022. Ethereum also declined, trading near $1,920. Both coins have shown high intraday swings, reflecting ongoing market volatility.
Data from CoinGecko shows the global crypto market has lost nearly $2 trillion since its October 2025 peak of $4.379 trillion, with more than $1 trillion erased in the past month alone.
Silver enters correction mode
Silver has seen a sharp pullback after an extraordinary rally earlier this year. On India’s MCX, prices fell 6 per cent on Friday to ₹2,29,187 per kilogram, taking weekly losses to nearly 16 per cent. Since its 2026 peak, silver has dropped roughly 45 per cent.
Exchange-traded silver funds also fell between 5–8 per cent on Friday as investors exited crowded positions, amplifying volatility. Silver, which briefly ranked among the world’s most valuable assets by market capitalization, has recently lost ground to tech peers such as Nvidia.
Global risk-off sentiment
The synchronized decline across tech stocks, cryptocurrencies, and silver reflects broader risk-off sentiment. Rising interest rates, a strong US dollar, and concerns over earnings sustainability are key drivers. Asian markets extended losses alongside US futures, while silver and Bitcoin also declined, highlighting the global nature of the correction.
Markets appear to be correcting after a period of rapid, price-driven momentum rather than fundamental weakness alone. High-growth tech stocks are undergoing valuation recalibration as post-pandemic AI enthusiasm pushed multiples to extreme levels. Some software and semiconductor companies have seen double-digit declines from recent highs, suggesting earlier optimism may have been overextended.
Rising interest rates, strong dollar dynamics, and weak economic data are weighing on investor confidence. Liquidity conditions are tightening, prompting caution across speculative assets.
Are bubbles bursting?
Market participants are debating whether this is a multi-asset bubble bursting or just a correction. The simultaneous pressure on tech, crypto, and precious metals points to a broader adjustment rather than isolated asset failures.
Upcoming tech earnings will be closely watched for revenue growth, guidance, and margin trends. How companies navigate slowing growth could shape broader market sentiment.
Monetary policy decisions will also be pivotal. Fed guidance on interest rates could either stabilize or further pressure risk assets. Markets remain sensitive to any signs of accelerated tightening or dovish pauses.
If declines persist, the narrative of a multi-asset correction may solidify, marking a recalibration after more than a year of extraordinary price momentum.
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