S&P 500, Nasdaq Drop as Chip Rally Fades; Bitcoin Holds $60K
U.S. stocks fell on Tuesday, with the S&P 500 down 0.9%, the Nasdaq down 1.8%, and the Dow slipping slightly. The main drag came from the tech sector, especially semiconductors, as the iShares Semiconductor ETF dropped nearly 6% after a rebound that already looked stretched.
Micron fell more than 6% following a sharp Monday bounce, after a rough prior week that included about a 20% two-day drop (and a 13% selloff on Friday). Broadcom also gave back gains, dropping more than 4% after its own steep two-day slide.
Oil moved lower, briefly supporting parts of the market. West Texas Intermediate crude fell about 5% to around $86 a barrel after comments tied to the Strait of Hormuz and a possible U.S.-Iran deal timeframe were discussed by Chris Wright and Donald Trump. Even with the weaker oil price, tech weakness outweighed the relief.
The S&P 500’s energy names fell about 2%, real estate received support from better-than-expected existing home sales, but information technology declined nearly 4%.
In crypto, Bitcoin climbed back above $60,000 after dipping below that level Friday. BTC is down roughly 27% in 2026 and about 50% below its all-time high. Options activity remained active: the iShares Bitcoin Trust ETF (IBIT) ranked among the most popular options tickers by volume, while Strategy and Coinbase featured in large options trades.
Bottom line: fading chip momentum and risk-off pressure in tech drove the S&P 500 selloff, while Bitcoin’s stability around $60K suggests traders are watching for the next catalyst rather than fully exiting risk.
Bearish
The article frames the selloff in U.S. equities as primarily driven by tech/semiconductor weakness—i.e., the semiconductor rebound “lost steam.” That typically increases risk aversion across assets, and crypto often trades as a high-beta risk proxy. Even though oil fell (which can be a mild tailwind), the market response in the tech sector dominated, keeping the tone cautious.
For Bitcoin, the story is mixed: BTC recovered above $60K, but it remains down ~27% in 2026 and ~50% below its all-time high—so it’s not signaling a full risk-on regime. The mention of active BTC options (IBIT volume, Strategy/Coinbase large trades) suggests traders are positioning for continued volatility rather than calm.
Short-term: bearish bias. Tech drawdowns and semiconductor volatility can pressure broader sentiment and tighten liquidity expectations, which often weighs on BTC during market-wide de-risking.
Long-term: mildly bearish-to-neutral. If lower oil and easing Middle East tension translate into sustained macro relief, it could stabilize risk assets and reduce downside pressure on crypto. But as long as semiconductor momentum remains fragile, the equity-led risk-off impulse is likely to cap any sustained crypto recovery.