Nasdaq 100 and S&P500: Tech Stocks and Crypto Dive as Traders Exit High-Beta Names

Nasdaq Slides Over 1% as Traders Dump Tech and Crypto Positions

U.S. stocks moved lower in late trading Tuesday, with the Nasdaq Composite leading the downside, dragged by losses in high-growth tech and crypto-linked names. The Nasdaq dropped over 1.3%, falling to 21,333, while the S&P 500 shed 0.64% and the Dow eased 65 points after hitting an intraday record.

Traders rotated out of risk-heavy positions ahead of key remarks from Federal Reserve Chair Jerome Powell later this week. The shift sent crypto and tech names broadly lower, with profit-taking accelerating across speculative corners of the market.

Why Are Tech Giants and Semis Weighing on the Nasdaq?

Tech led the pullback, with chipmakers and AI-driven stocks bearing the brunt. Nvidia dropped 3%, while AMD and Broadcom lost nearly 5% and 4%, respectively. Palantir sank more than 9%, marking the S&P 500’s steepest single-stock loss.

The sector-wide move dragged the Nasdaq E-mini futures down 1.35%, slipping to 23,476 with support now eyed at 23,421.

After a 40% rally in the Nasdaq since April, some traders are booking profits and repositioning ahead of Powell’s Jackson Hole address. The tech sector, which had outperformed on AI optimism, now faces valuation pressure if rate cut expectations waver.

Is Crypto Following Tech Lower?

Crypto stocks also sold off sharply, echoing the broader risk-off tone. Coinbase and eToro fell more than 5%, Robinhood and Bullish dropped over 6%, and Galaxy Digital tumbled 11%. Strategy and other crypto treasury firms slid 7–15%.

Bitcoin fell 2.55% to $113,319, breaking below its 50-day moving average at $115,867 and heading closer to short-term support near $111,900.  The pullback comes just days after Bitcoin printed a fresh intraday all-time high near $125,000.

Ether dropped over 4%, retreating toward $4,100.

With traders locking in gains and stepping aside ahead of Powell’s comments, digital assets — especially those with high beta to monetary policy — are feeling the pressure.

What’s the Fed Risk for Risk Assets?

The market is pricing in an 83% chance of a rate cut at the Fed’s September meeting, according to CME’s FedWatch. Any hawkish lean in Powell’s Jackson Hole speech could unwind some of the recent rally across risk assets. Traders will also parse his language for signals on longer-term rate policy and the Fed’s inflation stance.

Outlook: Risk Assets Face a Test at Jackson Hole

With both tech and crypto showing signs of exhaustion, traders are likely to stay defensive ahead of Powell’s Friday remarks. Should he affirm the rate cut path, markets may rebound. But if the Fed signals patience, profit-taking could deepen — especially in richly priced sectors like tech and crypto. Short-term support levels are now in play across Nasdaq futures and Bitcoin, with volatility likely to remain elevated.

More Information in our Economic Calendar.