U.S. equities saw a sharp broad-based sell-off, with roughly $1 trillion in market value erased in a single session. The S&P 500 and Nasdaq 100 both closed at their lowest levels since September, reflecting heightened risk aversion across technology, consumer, and growth-oriented sectors. Analysts attribute the downturn to tightening financial conditions and renewed macroeconomic uncertainty.
The downturn extended beyond equities, with the global crypto market cap falling by an additional $120 billion over the past 24 hours. Major digital assets declined in tandem with traditional markets as leveraged positions were unwound and liquidity thinned. Traders report increased volatility across Bitcoin, Ethereum, and large-cap altcoins.
Market observers note that cross-asset weakness is signaling a broader shift toward defensive positioning, with institutional flows rotating away from high-beta sectors. The coming days are expected to test market resilience as investors reassess risk exposure heading into year-end and reduce speculative allocations amid elevated volatility.
At the same time, investors are pulling out of U.S. tech companies at a record pace. Over the past four weeks, average outflows have reached -$2.5 billion — the largest level since 2008 and roughly $800 million higher than the previous record set in 2021. The accelerated retreat underscores a significant reset in risk appetite as markets confront tighter financial conditions and weakening sentiment across major asset classes.
