Bitcoin (BTC) is heading for its worst weekly performance since November 2022, down around 15% week-to-date as of Friday.

BTC/USD weekly chart Source: TradingView

BTC was trading near $62,500 after briefly dropping toward $61,000 earlier in the session. The roughly $1,500 rebound showed bulls are still trying to defend the psychologically important $60,000 support level.

How low can Bitcoin go if it breaks below $60,000?

Key takeaways:

• Bitcoin is testing its 200-week SMA near $61,800, a level that has historically acted as major cycle support.
• Analyst says $55,000 may be Bitcoin’s worst-case downside if the 200-week SMA continues to hold.

Bitcoin to $55,000 is the worst-case scenario: Analyst

Bitcoin may print a brief wick below $60,000 before finding stronger demand, according to analyst Radz.

In a Friday post, he said $55,000 could mark the “worst” downside scenario for Bitcoin, citing the 200-week simple moving average (200-day SMA, pink) as the core reason behind his bullish outlook.

BTC/USD weekly chart. Source: BarChart/TradingView

That level has historically acted as one of Bitcoin’s strongest long-term support zones. Previous retests of the 200-week moving average in 2019, 2020, 2022 and 2023 either marked major cycle lows that preceded strong recovery phases.

In February 2026, Bitcoin rose by over 37% after testing the 200-week SMA as support too. This week is BTC’s second attempt this year to hold above the pink line, as it treads around $62,000.

Bitcoin bear flag warns of deeper correction toward $50,000

A maturing bear flag on Bitcoin’s chart suggests the correction may extend well below the $55,000 area.

As of Friday, BTC had broken below the flag’s lower trend line, with rising trading volume showing stronger conviction behind the move. In technical analysis, a bear flag forms when the price consolidates higher inside a narrow channel after a sharp decline, before resuming the prior downtrend.

The measured target is calculated by subtracting the height of the preceding decline from the breakdown point. In Bitcoin’s case, that projects a downside target near the $50,000–$51,000 support zone.

That area also aligns with previous horizontal support, making it the next major level to watch if BTC fails to reclaim the flag’s lower trend line over the next few days.

Bitcoin onchain data points to $50,000–$54,000 target

Bitcoin’s onchain data points to a similar target as the bear flag setup.

Glassnode’s MVRV pricing bands show BTC’s realized price (purple) near $53,740. In simple terms, realized price is the average price at which the Bitcoin supply last moved onchain. In the past, this level acted like a major support level during correction cycles.

BTC MVRV extreme deviation pricing bands. Source: Glassnode

The same chart also shows another key support level (blue) near $50,560, where Bitcoin would look much cheaper based on onchain valuation.

Related: Bitcoin fell 21% after Strategy’s debt buyback news: Is Terra Luna-style doom loop next?

Together, these levels create a support zone between roughly $50,000 and $54,000. That lines up closely with the bear flag target near $50,000 to $51,000.

Bitcoin cup-and-handle breakdown risks drop toward $33,000

Bitcoin’s weekly chart is showing another bearish setup: a possible cup-and-handle breakdown.

The pattern shows BTC forming a rounded top, followed by a smaller rebound attempt inside the handle. Bitcoin price is now weakening near the lower end of that handle, close to the 200-week SMA and the $60,000 support level.

BTC/USD weekly chart. Source: TradingView

If Bitcoin breaks below this area decisively, the downside target from the pattern sits near $33,000.

Some of the largest US banks are reportedly planning to launch a tokenized deposit network in the first half of 2027 in response to growing competition from blockchain companies expanding into traditional finance. 

The network will be operated by The Clearing House, the bank-owned payments operator, and will connect traditional payment rails with digital asset infrastructure for 24/7 settlement, CEO David Watson told The Wall Street Journal.

The Clearing House is co-owned by some of the largest US banks, including JPMorgan Chase, Bank of America, Citibank, Barclays, BNY and Wells Fargo, among others, according to its website.

The plan shows how banks are trying to keep deposits inside regulated banking channels while offering some of the speed and programmability that have made stablecoins attractive for settlement and treasury use.

Cointelegraph reached out to The Clearing House for comment but had not received a response by publication.

US banks have pushed back against US crypto market legislation, which could allow stablecoin issuers to pay users yield on their holdings, similar to interest on traditional bank deposits.

The report comes after JPMorgan CEO Jamie Dimon said that the banking industry would continue to “fight” against the current version of the Digital Asset Market Clarity Act (CLARITY) and said that crypto companies that want to offer yield-bearing products should apply for banking charters, Cointelegraph reported in late May.

The comments followed a May committee vote to advance the CLARITY Act in the Senate Banking Committee, but the bill still needs to pass through both chambers of Congress before going to US President Donald Trump.

The Clearing House, owner banks. Source: TheClearingHouse.org

The plan shows that banking giants are “reacting to where value is already moving,” Carl Grimstad, CEO of digital asset infrastructure provider Lydian, said, adding:

“This announcement shows that 24/7 programmable settlement is becoming increasingly important.”

While banks have experimented with tokenization in controlled environments, public blockchain networks have settled value at a global scale, said Grimstad, adding that the real question is how value will move across an “increasingly fragmented mix of bank ledgers, public chains and digital assets.”

Related: US financial markets ‘poised to move on-chain’ amid DTCC tokenization greenlight 

Wall Street participants accelerate tokenization initiatives

Other Wall Street banks are also accelerating tokenization initiatives.

On March 24, the New York Stock Exchange (NYSE) partnered with tokenization platform Securitize to develop blockchain-based trading infrastructure for Wall Street by enabling the minting of tokenized shares of stocks and exchange-traded funds (ETFs).

Days earlier, on March 18, the US Securities and Exchange Commission (SEC) gave the regulatory green light to Nasdaq’s pilot proposal to support the trading of tokenized versions of high-volume stocks and securities.  

Earlier in January, the NYSE’s parent company, the Intercontinental Exchange (ICE), shared plans for a tokenized securities venue designed for 24/7 trading, instant settlement, stablecoin-based funding and onchain settlement.  

Over in Asia, South Korea’s Ministry of Economy and Finance announced a pilot project that will use tokenized deposits to execute government operational spending, with a full rollout set for the fourth quarter of 2026, Cointelegraph reported on April 16. 

Magazine: Can Robinhood or Kraken’s tokenized stocks ever be truly decentralized? 

Kraken has opened access to the upcoming SpaceX IPO through tokenized shares across more than 110 markets, bringing a traditionally exclusive Wall Street process to retail investors.

According to an announcement from Kraken, SpaceX will become the first company offered through its new xStocks IPO Access program, a service that lets eligible retail investors apply for IPO allocations using tokenized equity instruments rather than traditional brokerage channels.

Users must hold a verified Kraken account through the exchange’s mobile application and submit an IPO access request before shares become available.

Kraken said the service is currently accessible across the European Economic Area and more than 110 international markets, while users in the United States, Canada, Australia, and the United Kingdom remain excluded because of regulatory restrictions.

Investors who receive allocations will be issued SPCXx, a tokenized representation of SpaceX equity backed one-for-one by underlying shares. According to Kraken, those tokens will be tradable around the clock on Kraken and other platforms participating in the xStocks network.

The launch places Kraken in direct competition with a long-standing Wall Street practice in which IPO allocations are typically reserved for institutional investors and wealthy clients.

Earlier this week, Kraken-affiliated Payward Services said customers of Kraken and selected xStocks Alliance members would be able to register interest in upcoming U.S.-listed IPOs before companies begin trading publicly.

According to Payward Services, successful applicants will receive tokenized shares at the IPO offering price on listing day, with the underlying stock held by a regulated custodian. The company said the structure is intended to provide retail investors with access that has historically been difficult to obtain through conventional public offering processes.

SpaceX listing attracts strong demand

Bloomberg reported that SpaceX is expected to begin trading publicly on June 12 and is seeking to raise approximately $75 billion at a valuation exceeding $1.8 trillion. According to Bloomberg, investor demand has already surpassed the number of shares available.

If completed at that scale, Bloomberg said the transaction would become the largest IPO on record, surpassing the $29.4 billion listing completed by Saudi Aramco in 2019.

Much of the company’s valuation has been linked to the growth of Starlink, its satellite internet business. At the same time, SpaceX continues to invest heavily in launch services, spacecraft development, and other capital-intensive operations that could influence how public market investors assess the company after trading begins.

AI infrastructure contracts add another growth driver

Beyond its aerospace operations, SpaceX has expanded into AI infrastructure services through large compute agreements with technology companies.

According to a recent regulatory filing, Google has agreed to pay SpaceX $920 million per month from October 2026 through June 2029 for access to roughly 110,000 NVIDIA GPUs, CPUs, memory, and related equipment.

Google said the arrangement will help meet stronger-than-expected demand for its Gemini Enterprise products while additional internal capacity is developed.

Shortly before that agreement, SpaceX disclosed a separate deal with Anthropic. Under that contract, Anthropic agreed to pay $1.25 billion per month through 2029 for compute capacity from the Colossus 1 data center near Memphis, Tennessee.

The SpaceX offering also arrives as Kraken continues expanding beyond cryptocurrency trading. In late 2025, the exchange acquired xStocks operator Backed Finance and later announced plans to introduce regulated Bitcoin perpetual futures in the United States using infrastructure obtained through its acquisition of Bitnomial.

Bitcoin (BTC) has fulfilled two of three key conditions to spark the next BTC price “rally,” new analysis says.

Key points:

• Bitcoin whales on Hyperliquid and Bitfinex are already pointing to the beginning of a BTC price uptrend, according to the latest findings.
• Bitcoin markets now need demand to return in the form of the Coinbase and Kimchi Premium.
• Other preconditions for a bear market bottom are also in the process of forming.

Bitcoin price comeback hinges on US, Korea demand

Bitcoin whale traders are laying the foundations for BTC price relief, even as BTC/USD plumbs four-month lows.

In an X post on Friday, trader CW confirmed that Bitcoin whales on both Hyperliquid and Bitfinex are signaling a market rebound.

BTC/USD long positions on Bitfinex. Source: CW/X

CW notes that Hyperliquid whales have adopted a “bullish stance” on the market, while on Bitfinex, long positions have tailed off. The latter is a classic sign that an uptrend is due next.

“What remains is for the Kimchi Premium and Coinbase Premium to turn positive,” he commented.

The Coinbase Premium is the difference in price between Coinbase’s and Binance’s BTC/USDT pairs and has been mostly negative in 2026.

Bitcoin Coinbase Premium Index. Source: CryptoQuant

A negative premium reflects weak US demand, while the Kimchi Premium monitors the South Korean exchange sector.

Once demand returns across the board, Bitcoin has a better chance of reentering a sustainable uptrend.

CW acknowledged that the Kimchi Premium has already “decreased significantly” versus earlier in the week.

Bitcoin starts its latest “bottoming out” phase

As Cointelegraph reported, consensus overall favors a macro bottoming phase playing out for BTC/USD next.

Related: Trump says Iran will ‘work out well’: Five things to know in Bitcoin this week

The week has seen the pair touch a key bear-market trend line in the form of its 200-week simple moving average (SMA) — another essential ingredient in a bottom formation.

“Bitcoin has only just started deviating below the 200-week SMA,”  trader and analyst Rekt Capital emphasized to X followers on Friday.

“The significance of this is that historical Bear Market Bottoming out formations have started to develop via such deviations.”

BTC/USD one-week chart with 200SMA. Source: Rekt Capital/X

Earlier, trader Leviathan described BTC price action as copying the 2022 bear market “almost perfectly.”

Ether (ETH) slid to a 13-month low near $1,540 on Friday as risk-off sentiment seeped through crypto markets. The move came amid a cascade of derivative-driven liquidity drains and fresh security worries that have kept bulls on the back foot even as ETH trades well below its late-2025 highs. In parallel, a critical vulnerability in Zcash’s shielded pool—exposed by AI-driven tooling—fed fears of broader contagion across blockchains and DeFi protocols.

On the macro side, derivatives data painted a decidedly bearish picture. Futures markets showed negative funding rates, signaling higher demand for short exposure, while a wave of leveraged longs was liquidated, eroding any quick relief rally. The market backdrop was underscored by a sharp pullback in ETH’s real-use case metrics, with Ethereum’s Total Value Locked (TVL) signaling a pullback in DeFi activity and wallet flows remaining strained.

Key takeaways

• Ether derivatives tilt bearishly as cascading liquidations erase attempts at relief, with leveraged longs cut by over $1.28 billion across a five‑day window.
• Negative annualized funding rates for ETH perpetual futures indicate continued appetite for short bets, reinforcing a risk-off posture among traders.
• Demand for downside protection spikes in options, with Deribit ETH put-to-call premium reaching multi‑week highs, signaling growing hedging interest amid uncertain momentum.
• Ethereum’s on-chain activity frays as TVL sinks to the weakest level since February 2024, with notable DApps posting multi‑tens of percent contractions in user and capital inflows.
• A AI‑driven discovery of a Zcash vulnerability stokes fears of systemic risk, as investors question whether other networks could harbor similar blind spots.

Derivatives signal a risk-off regime for ETH

Market data show a clear tilt toward selling pressure in ether derivatives. The perpetual futures market turned negative on Friday, reflecting a thinning of upside conviction and a shift toward hedges or outright shorts. This dynamic is particularly concerning for bulls, given that ETH had already traded about 67% below its all‑time high from August 2025.

In the backdrop, roughly $1.28 billion in highly leveraged long positions were liquidated over five days, dimming prospects for a swift bounce. While price action remains volatile, the combination of losses and negative funding metrics underscores a fragile balance for those seeking risk-on momentum in ETH.

The derivatives picture is complemented by a rising demand for downside hedges in the options market. Data show the ETH put-to-call premium on Deribit climbing to roughly 3.7x on Friday, with the metric lingering at elevated levels since early in the week. This pattern points to a crowded hedging psyche among market participants and suggests that casual bidders may remain reluctant to chase rallies in the near term.

ETHTVL and DeFi activity: a pullback across the ecosystem

The retreat in on-chain activity is visible in Ethereum’s ecosystem metrics. DefiLlama data indicate Ethereum’s network TVL has slid to its lowest level since February 2024, a development that cynically reduces the available on-chain liquidity for users and dampens the revenue prospects for DApps built on the network.

Top ETH-based decentralized applications have also borne the brunt of this shift. Spark, Ether.fi, EigenCloud, and KernelDAO each reported double-digit declines in TVL, reflecting a broader correction in DeFi liquidity as funds migrate away from riskier protocols amid higher macro uncertainty.

The timing of this TVL erosion intersects with a broader narrative about security and risk in DeFi: a bug in Zcash’s shielded pool was discovered to enable unlimited minting, a finding attributed to AI-powered review tooling. While the vulnerability relates to Zcash specifically, it has intensified concerns about whether other chains harbor hidden flaws that could catalyze outflows and force risk repricing across ecosystems. The exposure was reported on a May 29 discovery using Anthropic’s Opus 4.8 AI model, amplifying market nerves about cross-chain contagion.

Beyond the immediate concern about security, April’s hack-and-exploit wave continued to color risk assessments. Across 25 protocols, hacks by KelpDAO and Drift Protocol accounted for a large share of losses—together around $573 million—illustrating how breaches have stressed a broad set of networks and liquidity pools, and implying that risk management remains a central topic for users and builders alike.

Supply dynamics and what they imply for ETH risk and recovery

On-chain supply metrics add another layer to the bear case. Glassnode data show that only about 30% of ETH supply remains profitable relative to the last time those coins moved. This kind of supply dynamic has historically preceded meaningful price action, contrasting with episodes where a larger portion of supply was profitable and markets traded in a more constructive fashion. In the current context, a limited pool of “on‑the‑move” ETH suggests fewer buyers stepping in to relieve selling pressure unless a catalyst appears.

Further complicating the outlook is the scale of unrealized losses in top ETH treasury holders. Bitmine (BMNR US), the largest ETH treasury holder, reportedly sits on an unrealized loss of about $10.5 billion, representing roughly 4.5% of the entire ETH supply. If the market continues to tighten and lenders and lenders’ risk appetites stay constrained, such concentrated exposure can amplify downside volatility during forced liquidations or correlated de-risking waves.

Taken together, these data points suggest a fragile recovery path for ETH at present. Prices could press lower toward key levels, with the psychological threshold near $1,550 providing a potential point of relief if buyers emerge. However, the confluence of weak on-chain activity, persistent derivatives headwinds, and the specter of cross-chain vulnerabilities keeps the risk skewed to the downside in the near term.

For readers tracking risk and opportunity, the next few weeks will be telling. Watch for fresh data on DeFi liquidity, any new security alerts across major networks, and whether cross-chain risk dynamics begin to stabilize as market participants reassess hedging needs and capital allocation.

Source-style data points cited include Laevitas on ETH futures funding (see https://app.laevitas.ch/assets/perpswaps/ETH/funding), DefiLlama for on-chain TVL shifts, and Glassnode’s profitability metrics (https://studio.glassnode.com/charts/supply.ProfitRelative?a=ETH&mScl=lin&resolution=24h). The Zcash vulnerability and related AI-review context were reported in coverage noting an AI-assisted discovery of a vulnerability that enabled unlimited minting, with a related Cointelegraph reference to the broader security implications of such flaws (see https://cointelegraph.com/news/zec-tanks-30-after-ai-security-review-discovers-critical-zcash-vulnerability).

According to a fiscal year 2027 budget bill passed by the Illinois General Assembly, the state is moving forward with a new tax on cryptocurrency transactions that would apply to digital asset brokers operating in Illinois.

Included within the state’s $56 billion budget package, the proposal introduces a 0.2% tax on crypto transactions under a provision known as the Digital Asset Privilege Tax Act. Lawmakers approved the measure along party lines on Monday, leaving only Governor JB Pritzker’s signature before it can become law.

State budget documents estimate the tax could generate approximately $60 million in revenue. Under the proposal, any entity classified as a digital asset broker would be required to register with the state before facilitating covered crypto transactions.

Failure to comply could carry criminal consequences. The legislation states that brokers operating without meeting registration requirements after Jan. 1 may face Class 3 felony charges, which in Illinois can result in prison sentences ranging from two to five years and fines of up to $25,000.

Industry groups have opposed the proposal

Opposition emerged shortly after the bill cleared the legislature. In a joint letter released on Wednesday, the Digital Chamber and the Illinois Blockchain Association urged state officials to reject the Digital Asset Privilege Tax Act, arguing that the proposal would harm the local digital asset industry.

The organizations said the measure was introduced without meaningful consultation with industry participants and noted that no other U.S. state currently imposes a comparable tax on crypto transactions.

Separately, the Digital Chamber stated in a post on X that the proposal raised concerns because stakeholders received little advance notice before lawmakers incorporated it into the budget package. The group described the tax as economically damaging and called for its removal before final approval.

Attention has also focused on the way the measure advanced through the legislature. Critics have argued that the crypto tax was embedded within a 1,624-page budget bill rather than being debated as standalone legislation.

States and Congress are increasing scrutiny of digital assets

The Illinois proposal arrives as policymakers across the United States examine new approaches to digital asset oversight and taxation.

Earlier this year, Governor Pritzker signed Executive Order 2026-04 prohibiting Illinois state employees from using nonpublic information obtained through their official duties to trade prediction market contracts or assist others in doing so. According to the governor’s office, the order was intended to strengthen ethics safeguards as prediction markets continue to expand.

A similar measure was adopted in New York one day later when Governor Kathy Hochul signed Executive Order 60, which bars state officials from using confidential government information for personal gain in prediction markets and authorizes disciplinary action for violations.

Meanwhile, federal lawmakers are considering separate crypto tax proposals. On June 5, the U.S. House Ways and Means Committee released seven discussion drafts covering subjects including stablecoin payments, staking rewards, mining income, DeFi lending, wash-sale rules, charitable donations, and voluntary disclosure programs for crypto taxpayers.

According to the committee, the proposals will be discussed during a June 9 congressional hearing and draw from ideas previously included in the PARITY Act and legislation introduced by Senator Cynthia Lummis.

Governor Pritzker has publicly indicated that he intends to sign Illinois’ budget package, though the measure had not yet received final approval as of Friday morning.

Key Takeaways

• FuelCell Energy releases fiscal Q2 2026 earnings before markets open Monday, June 8
• Wall Street forecasts a loss of $0.43 per share with revenue reaching $40.51 million
• Shares have surged more than 190% in 2025, propelled by AI infrastructure power needs and renewable energy momentum
• First quarter fiscal 2026 delivered 61% revenue increase to $30.5M year-over-year, though gross margin losses expanded
• Analyst community remains divided — ratings range from Hold to Sell, with recent insider selling activity and zero insider purchases over three months

FuelCell Energy (FCEL) will unveil its fiscal second quarter 2026 financial performance before trading begins on Monday, June 8.

FuelCell Energy, Inc., FCEL

Analyst consensus points to an anticipated per-share loss of $0.43 against projected revenue of $40.51 million.

The stock has emerged as one of 2025’s standout performers, climbing north of 190% since January. This remarkable ascent has been primarily powered by market excitement surrounding artificial intelligence data center energy requirements and accelerating clean energy adoption.

However, a closer examination of the company’s financial health reveals a more nuanced picture.

Top-Line Expansion Masks Profitability Struggles

During the first quarter of fiscal 2026, FCEL achieved impressive 61% year-over-year top-line expansion, generating $30.5 million in revenue. At first glance, this appears encouraging.

The challenge lies in the company’s worsening gross margin performance. Market observers have highlighted that the first quarter’s revenue spike stemmed from one-time project work rather than new agreements tied to AI infrastructure or data center contracts.

This differentiation is critical. Project-based revenue streams don’t establish the sustainable, repeating business framework that long-term investors seek.

The company currently holds a GF Score of 61 out of 100, with profitability metrics scoring only 2 out of 10. Its financial strength registers at 5 out of 10. These figures paint a concerning portrait for risk-averse investors.

Wall Street’s Cautious Stance

Seeking Alpha’s quantitative rating system assigns FCEL a Hold designation. Seeking Alpha’s analyst consensus tilts toward Sell. The broader Wall Street community maintains a Hold rating.

One market analyst stated bluntly: “There is no denying that this is a risky investment. Most conservative investors would exclude FuelCell from the investment universe after glancing at the financial statements for 30 seconds.”

The analyst further emphasized that for the stock’s current valuation to be justified, management must demonstrate at least two back-to-back quarters of positive EBITDA alongside a concrete strategy for scaling its Torrington manufacturing capacity to 350 MW.

That represents a substantial hurdle for an organization still generating quarterly losses.

Throughout the previous three months, earnings per share projections have received two upward adjustments with zero downward changes. Revenue forecasts, conversely, paint the opposite picture — one revision higher, four revisions lower.

Regarding insider transactions, the past three months witnessed one insider sale involving 2,500 shares. No insider purchase activity has been documented during this period.

FCEL has historically surpassed EPS expectations 88% of the time across the past two years, a noteworthy track record heading into Monday’s announcement. The company has exceeded revenue projections 50% of the time.

The stock currently trades at a price-to-sales multiple of 3.7. With a market capitalization hovering around $1.13 billion, the market is clearly betting on substantial future expansion — yet the underlying financial performance remains unproven.

TLDR

• Major indices tumbled Friday with Nasdaq sinking 2.1%, S&P 500 declining 1.1%, and Dow losing 140 points
• Employment data revealed 172,000 new positions in May, significantly exceeding the 88,000 anticipated
• Robust labor market pushed Federal Reserve rate hike probability to 68.3%, eliminating prospects for immediate cuts
• Semiconductor stocks declined following Broadcom’s disappointing earnings performance
• The S&P 500 faces potential end to its 9-week rally, which would be the longest advance since 1985

Equity markets experienced significant declines Friday following employment data that exceeded analyst projections, simultaneously driving up interest rate hike expectations while technology stocks faced renewed pressure over artificial intelligence investment concerns.

The Nasdaq Composite plummeted 2.1%. The S&P 500 declined 1.1%. The Dow Jones Industrial Average retreated approximately 140 points, representing a 0.3% decline.

The market downturn resulted from two distinct pressures converging simultaneously.

Employment Data Surprises Markets

The May nonfarm payrolls release revealed American businesses added 172,000 positions during the month. Analysts had projected approximately 88,000 additions. The jobless rate remained unchanged at 4.3%.

The unexpectedly strong employment figures altered market expectations regarding Federal Reserve monetary policy. Market participants rapidly adjusted positioning to account for at least one interest rate increase before year-end.

Probability of a rate hike surged to 68.3%, climbing from 50.4% just one day earlier. This development essentially eliminates any possibility of rate reductions in the near term.

Eric Winograd, chief US economist at AllianceBernstein, said the data shows the economy is still holding up. “That’s enough to keep the Fed on hold,” he wrote.

This development occurs while President Trump maintains public pressure for rate reductions. Kevin Warsh, Trump’s appointee, has recently assumed the role of Fed chair.

Semiconductor and AI Stocks Extend Declines

Broadcom shares had already experienced substantial losses Thursday after releasing quarterly results. Friday brought additional selling pressure.

The wider semiconductor industry mirrored these losses. Market participants have adopted a more cautious stance regarding artificial intelligence capital expenditures, with Broadcom’s financial results amplifying these apprehensions.

Technology equities had experienced robust gains throughout recent weeks, providing substantial support to benchmark indices. This positive momentum has now dissipated.

The Nasdaq had emerged as a primary beneficiary of AI-related enthusiasm. It now faces the steepest losses as market sentiment reverses.

Historic Rally Faces Termination

The S&P 500 began Friday positioned to achieve a tenth consecutive week of advances. Such an achievement would have represented the longest winning sequence since 1985.

That remarkable streak now confronts potential termination.

The benchmark index has retreated as multiple adverse factors materialized simultaneously — escalating rate anxieties, technology sector vulnerability, and geopolitical instability.

News regarding stalled US-Iran ceasefire discussions contributed to the cautious atmosphere permeating Wall Street. President Trump characterized negotiations as entering their “final” phase, though considerable uncertainty persists.

Equity futures had already signaled weakness before the employment report’s release, with Nasdaq 100 futures spearheading morning session declines.

The convergence of an overheated labor market, hawkish monetary policy expectations, and a stumbling artificial intelligence rally left limited havens within equity markets Friday.