AI infrastructure stocks, including HUT 8, IREN, and Cipher Mining, tumbled after AMD plunged 14% following weaker-than-expected fourth-quarter results.
Bitcoin (BTC $68,561.87) slipped back below $74,000 early in the U.S. session, erasing Tuesday’s bounce as tech sector weakness pressured crypto.
The Nasdaq 100 dropped 1% after a 1.5% decline the day before. Software stocks continued their selloff, with the iShares Expanded Tech-Software ETF (IGV) falling another 4%, down 17% over just more than a week amid concerns that AI could disrupt the sector.
Crypto miners, increasingly tied to AI infrastructure, mirrored the slide. Cipher Mining (CIFR), IREN, and Hut 8 (HUT) all fell more than 10%, reflecting the fallout from AMD’s disappointing guidance.
Gold also gave back overnight gains, dropping below $5,000 after briefly touching $5,113 per ounce.
Mixed U.S. economic signals
The ISM Services PMI for January held steady at 53.8, matching December’s revised reading and slightly exceeding expectations, pointing to continued growth in services.
Private job growth, however, slowed sharply, with ADP reporting just 22,000 new jobs—well below forecasts of 48,000 and December’s 37,000. The official January jobs report, normally due Friday, has been delayed until next week due to a short government shutdown.
“Manufacturing has lost jobs every month since March 2024’s Main Street recession, and now professional services and large employers are showing weakness,” said Lekker Capital CIO Quinn Thompson, who also noted that markets may be underestimating potential Fed stimulus in 2026.
