Artificial intelligence-focused stocks are under pressure on Friday, dragging down technology-related stocks and Bitcoin It declined during the early US session.
Chipmaker Broadcom (AVGO), the ninth-largest asset by market cap, fell 10% despite strong earnings as its outlook disappointed investors’ lofty expectations.
The Nasdaq index fell more than 1% in the first hour of the session. Add that to Oracle’s 10% decline on Thursday and another 3% drop on Friday, with investors growing concerned that the hot topic of artificial intelligence that has fueled much of this year’s stock market gains may fizzle out.
Bitcoin, which traded at about $92,500 overnight, fell 2% after the US stock market opened at $89,800 recently, extending the week’s choppy move. A consistent theme this week has been Bitcoin setting intraday lows during US trading hours, a pattern that led to the proposed proposal being introduced. After Dark Hours ETF.
Bitcoin miners, some of whom are increasingly turning to artificial intelligence for diversification, showed a similar reaction to Broadcom’s failure. Hut 8 (HUT) fell more than 5%. Shares of Iren (RIEN) and Riot (RIOT) are down about 4%, while shares of Cipher (CIFR) and Iren (IREN) are down about 2% over the past day.
Cryptocurrency-related stocks also fell along with the Nasdaq. Robinhood (HOOD) and Strategy (MSTR) are both down nearly 2%. Stablecoin Issuer Circle (CRCL) was hit hard and fell by more than 5%. Coinbase (COIN) is down slightly.
Markets were already under pressure after Federal Reserve Chairman Jerome Powell’s speech on Wednesday, in which he hinted at the possibility of halting interest rate cuts in January. As a result, markets now expect only two interest rate cuts in 2026 instead of three. President of the Federal Reserve Bank of Chicago East GoolsbyHowever, he, who was against cutting interest rates in December, said he expects more in 2026 than the current average forecast.
Several other members of the Fed will also speak throughout the day as the central bank’s blackout period after its December meeting ends on Wednesday. Traders will be looking for any guidance on whether Fed officials agree with Powell on potentially keeping interest rates steady in January.
