Artificial intelligence-focused stocks come under pressure on Friday, dragging technology-related stocks and bitcoin. lower during the early US session.
Chipmaker Broadcom ( AVGO ), the ninth-largest asset by market capitalization, 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. It adds to Oracle’s 10% drop on Thursday and a further 3% drop on Friday as investor concerns mount that the red-hot AI theme that fueled much of this year’s stock market gains may be fizzling out.
Bitcoin, trading around $92,500 overnight, fell 2% after the US stock market recently opened at $89,800, extending the choppy action through the week. A recurring theme this week has been bitcoin making intraday lows during US trading hours, a pattern that has led to the filing of the proposed AfterDark Hours ETF.
Bitcoin miners, some of whom have increasingly leaned on AI for diversification, showed a similar reaction to Broadcom’s miss. Hut 8 (HUT) fell more than 5%. Iren (RIEN) and Riot (RIOT) are down around 4%, while Cipher(CIFR) and Iren (IREN) are both down around 2% over the past 24 hours.
Crypto-related stocks also fell along with the Nasdaq. Robinhood (HOOD) and Strategi (MSTR) both fell nearly 2%. Stablecoin issuer Circle (CRCL) was hit hard, falling more than 5%. Coinbase (COIN) fell slightly.
Markets had already been under pressure following Federal Reserve Chairman Jerome Powell’s speech on Wednesday, which hinted at a possible rate-cutting pause in January. As a result, markets now expect only two rate cuts in 2026 instead of three. However, Chicago Fed President Austan Goolsbee, who opposed a rate cut in December, said he expects more in 2026 than the current median projection.
Several other members of the Federal Reserve will also speak later today 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 to potentially keep interest rates steady in January.
