Tech Stocks Dive; Bitcoin Hits Lowest Since May

Market Overview: Declining Stock Futures and Bitcoin Slump

Stock futures are signaling another challenging session as declines persist across major indices. Futures tied to the tech-heavy Nasdaq dropped 1.5%, while S&P 500 and Dow Jones futures fell 1.1% and 0.7%, respectively. This follows steep losses in the previous session, with the Dow shedding over 800 points and the Nasdaq down 2.3%.

Bitcoin has also extended its decline, sinking to $95,000—its lowest level since May. The cryptocurrency's downturn is impacting related stocks, with shares of Coinbase, Robinhood, and Marathon Digital Holdings posting significant premarket losses. Bitcoin's continued weakness reflects broader risk-off sentiment in the market, with investors retreating from speculative assets amid economic uncertainty.

Tech Sector Selloff and Rate-Cut Concerns

The tech sector remains a focal point for market turbulence, as high valuations in companies like Tesla and Nvidia weigh heavily on sentiment. Tesla saw a 4% decline in premarket trading after falling over 6% in the prior session, while Nvidia shares are down 3%, continuing a broader selloff in AI-related stocks.

Adding to market jitters are waning hopes for a Federal Reserve rate cut in December. CME Group's FedWatch tool now indicates less than a 50% probability of a rate cut, a stark drop from 95% just a month ago. Federal Reserve officials, including Minneapolis Fed President Neel Kashkari, have expressed concerns about inflation resilience, further dampening rate-cut expectations. This shift has led to increased volatility, particularly in high-growth sectors like technology.

Corporate Updates: Walmart and Crypto-Linked Stocks

Walmart announced that CEO Doug McMillon will retire on January 31, 2026. He will be succeeded by John Furner, the current CEO of Walmart U.S., effective February 1, 2026. McMillon, who has served as CEO for a decade, will remain on Walmart’s board until June 2026 to ensure a smooth leadership transition. Shares of Walmart fell 3% following the announcement.

Meanwhile, crypto-linked stocks are under significant pressure as Bitcoin's slump deepens. Coinbase shares dropped 7% in premarket trading, while Robinhood and Marathon Digital Holdings fell 5% and 11%, respectively. The broader cryptocurrency market has seen $19 billion in liquidations this month, amplifying concerns about the sector’s near-term stability. These developments underscore the fragile state of speculative investments in the current risk-averse environment.