The NASDAQ 100 fell 2.1% in recent trading, extending losses as Wall Street grapples with higher-for-longer interest rates. The selloff hit information technology stocks hardest, with the broader Nasdaq Composite sliding 1.39%.
Recent US inflation reports came in hotter than expected, pushing back the timeline for rate cuts. That dynamic is particularly damaging for growth stocks, which rely on future earnings that are worth less when rates remain elevated. The index is heavily weighted toward companies trading on growth expectations rather than current profitability.
Notably, Take-Two Interactive rose 6.8% intraday, bucking the broader decline. But disappointing earnings guidance from several major tech firms compounded the damage, as the AI trade-a key driver of valuations-shows signs of fatigue.
The NASDAQ 100 serves as a key macro benchmark for risk sentiment in the crypto market. Higher rates make risk-free assets like Treasury bonds more attractive relative to speculative investments, pressuring both tech and digital assets like Bitcoin and Ethereum.