The US stock market witnessed significant turmoil on February 28, with all three major indices experiencing considerable declines. The Dow Jones Industrial Average fell by 0.43%, while the S&P 500 Index suffered a 1.59% drop, and the Nasdaq Composite fell sharply by 2.78%. The technology sector was particularly impacted, with major players losing a staggering $550 billion in total market capitalization. In particular, Nvidia’s recent earnings fell short of expectations, resulting in an initial stock price uptick of 2% before a dramatic decline of over 8% by day’s end, erasing more than $270 billion in market value.
The cryptocurrency market followed suit, experiencing sharp declines linked to the tech sell-off. Bitcoin dipped below $80,000, marking its lowest level since November, while Ethereum fell to approximately $2,100, erasing significant gains made since last August. Additionally, SOL dropped beneath $130, marking its five-month low. Compared to prior highs, Bitcoin has decreased by over 25%, Ethereum by more than 45%, and SOL has plummeted more than 55%. The prevailing market sentiment is one of extreme fear, with no immediate signs of recovery.
In the realms of forex and commodities, the US dollar strengthened by over 0.7% amid clearer tariffs under Trump’s administration, while oil prices surged by over 2.5%. The stronger dollar contributed to a 1.3% drop in gold prices, reaching a two-week low. As concerns about a weakening US economy grow, coupled with uncertainty surrounding Trump’s policies, market anxiety is palpable. Both US equities and cryptocurrency markets are under heavy pressure, prompting 4E, a financial trading platform, to introduce a new USDT stablecoin product offering an 8% annualized return, providing investors with potential hedging opportunities amidst market volatility.