US Stock Market and Bitcoin Correction Raises Questions about Monetary Policy and AI Boom

The US stock market experienced a significant downturn following a strong jobs report, with the S&P 500 posting its biggest one-day drop since October 2025.

Despite setting a new all-time high just days prior, the market reacted to the data showing an increase of 731,000 job openings in April and a total of 7.6 million job openings, the highest level since May 2024.

The strong jobs report forced investors to reassess their expectations for the future policy of the US Federal Reserve, with analysts predicting a tighter monetary policy scenario instead of the rate cuts previously expected.

Bitcoin extended its decline amid worsening sentiment towards risk assets, falling more than 53% from its all-time high in October 2025 and contributing to a broader crypto market decline of roughly $2.5 trillion over the same period.