Tech Stocks and Fed Uncertainty Drive Market Volatility
Investors faced a turbulent week as tech stocks, led by Nvidia's mixed earnings response, failed to reignite the AI rally. The Nasdaq's modest 2% rebound on Friday paled against historical outperformance, signaling waning momentum. Federal Reserve policymakers remain deeply divided on rate policy ahead of June's meeting, exacerbating market anxiety.
The Cboe Volatility Index spiked to April highs during Thursday's selloff, reflecting growing risk aversion. While AI-related cryptocurrencies like FET, AGIX, and RNDR weren't mentioned in traditional market reports, digital asset traders are watching tech sector weakness for potential spillover effects on crypto markets.
Market structure appears fragile as institutional capital rotates between traditional tech and alternative assets. Crypto-native investors view this uncertainty as a potential catalyst for Bitcoin accumulation, particularly with spot ETF flows showing renewed interest at current levels.