S&P 500 and Nasdaq close sharply lower as AI selloff drags market

The S&P 500 and Nasdaq closed sharply lower as a selloff in AI-related stocks dragged the broader market down. The decline reflects heightened market volatility and investor caution, which could weigh on future tech investments and IPO valuations amid economic uncertainty. Crypto traders often treat sharp equity drawdowns as a risk-off signal, since tech-led selloffs have historically correlated with pressure on bitcoin and other digital assets.