The Nasdaq Composite closed June 23 down 2.21%, shedding 579.56 points to finish at 25,587.04. The S&P 500 dropped 1.44% to 7,365.47. The Dow Jones slipped just 0.09%, indicating concentrated pain in technology.
The Philadelphia Semiconductor Index fell 7.9%. The S&P 500 Information Technology sector decreased by 3.7%, dragging the broader index lower.
Market participants priced in an 85% probability of at least one Federal Reserve rate hike, up from 60% the prior week, explaining the velocity of the selloff.
Bitcoin dropped 2.5% to $62,300, while Ether fell over 4% to $1,650, with $717 million in liquidations across the altcoin market in a single session.
This is not an isolated event. On June 5, the Nasdaq fell 4.18%, driven by similar headwinds from the semiconductor sector. Two notable tech-led selloffs within three weeks suggest a concerning trend for investors.
The shift in Fed rate hike probabilities is critical, affecting valuations. A 7.9% drop in the Philadelphia Semiconductor Index reflects heightened vulnerabilities.
Furthermore, the $717 million in altcoin liquidations may indicate forced selling. While this can stabilize the market temporarily, it can also lead to cascading selloffs if prices breach technical levels.