Stock Rotation Hits Tech Giants as Small Caps Rise: Markets Wrap

A tech selloff dragged down stocks from near-record levels amid a rotation into economically sensitive shares. A flare-up in geopolitical risks lifted oil while gold bounced after a historic rout. Bitcoin hit the lowest since November 2024.

The plunge in software makers came as Anthropic’s automation tool heightened concerns their core businesses are at risk. The S&P 500 fell 0.8% and the Nasdaq 100 slid 1.6%. News the US Navy shot down an Iranian drone headed toward an aircraft carrier in the Arabian Sea also weighed on sentiment. In late hours, Advanced Micro Devices Inc. gave a disappointing forecast.