Market Slumps as Tech Stocks Weaken and Tensions Rise Between US and China

The stock market took a hit on Thursday, July 16, with the Nasdaq falling 1.5% and the S&P 500 dropping 0.5%. The Dow Jones also declined by 0.2%, or 105 points. Tech stocks were among the biggest drags on the indexes, with Nvidia and Broadcom leading the way down.

The tech sector has been a key driver of the market's recent gains, but its narrow leadership role is now weakening. As a result, the broader indexes are feeling the pressure. Despite this, more stocks within the Dow and S&P 500 actually closed higher than lower on the day.

In other markets, Bitcoin took a hit as well, falling below $63,000 after the U.S. launched fresh airstrikes on Iran. The cryptocurrency had already fallen nearly 1.4% on Thursday from around $65,000. Oil markets were relatively calm in response, with WTI crude holding steady at around $79 per barrel.

The recent escalation of tensions between the U.S. and China is also putting pressure on risk assets like Bitcoin. President Trump's announcement that he would declassify intelligence reports alleging Chinese election interference added to the concerns ahead of a planned meeting between Trump and Chinese President Xi Jinping in September.