Tech Stocks Tumble on AI Bubble Fears—While Crypto Holds Strong Amid Wall Street’s Meme Obsession
Wall Street's latest darling isn't a blue-chip stock or a tech giant—it's Pepe. As traditional equities face a brutal sell-off over AI sustainability concerns, meme coins are bizarrely capturing institutional attention.
Tech Carnage Meets Crypto Resilience
Nasdaq futures plummet 2.3% as investors question whether AI valuations have jumped the shark. Meanwhile, crypto markets show surprising stability—Bitcoin holds above $60K while Pepe Coin rallies 18% on sheer speculative momentum.
The Irony of Institutional Adoption
Hedge funds that once mocked 'internet money' now chase meme coin pumps—proving that when traditional markets sneeze, Wall Street will literally buy cartoon frogs. Classic finance genius: diversify into assets with even less fundamental value.
What's Next—Rational Markets or Meme Mania?
If AI stocks keep bleeding, don't be surprised when pension funds start filing memes as serious investment theses. Because nothing says 'prudent stewardship' like betting retirement funds on frog-themed tokens.
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During Wednesday’s regular trading session, the S&P 500 fell 0.24% for its fourth straight loss, the Nasdaq dropped 0.67%, while the Dow rose slightly. Investors continued to pull money out of many big-name tech companies. Amazon (AMZN), Apple (AAPL), and Alphabet (GOOGL) saw losses exceeding 1%, while Broadcom (AVGO), and Intel (INTC) declined 1.3% and 7%, respectively.
Additionally, minutes from the Federal Reserve’s July meeting, released yesterday, showed that central bankers remain concerned about inflation and tariffs, which could impact future rate decisions.
On the economic front, traders await key reports on the S&P flash manufacturing and services purchasing managers’ index (PMI) reports, existing home sales data, and initial jobless claims for the week ended August 16.
Turning to the earnings season, traders are awaiting retail giant Walmart’s (WMT) results after peers Target (TGT), Home Depot (HD), and Lowe’s (LOW) sent mixed signals on consumer health.
Meanwhile, the U.S. 10-year Treasury yield was up, floating NEAR 4.30%. WTI crude oil futures were trending higher, hovering near $63.22 per barrel as of the last check. Additionally, the Gold Spot U.S. dollar price decreased to nearly $3,381 per ounce on Thursday.
Elsewhere, European stocks opened mixed today following the tech sell-off in its U.S. counterparts. Traders are also awaiting data on the preliminary purchasing managers’ index (PMI) for the Eurozone and the U.K.
Asia-Pacific Markets Traded Mixed Today
Asia-Pacific markets traded mixed today due to mixed regional economic data, investor caution ahead of the Jackson Hole Economic Policy symposium, and tech sell-off in the U.S. market.
Hong Kong’s Hang Seng index fell by 0.24%. In China, the Shanghai Composite ROSE 0.13%, while the Shenzhen Component fell 0.21%. Meanwhile, Japan’s Nikkei declined 0.65%, and the Topix dropped by 0.52%.
