Stock Market Impact: Strong U.S. non‑farm payrolls data led to a sharp repricing of Federal Reserve rate‑cut expectations, pushing Treasury yields and the U.S. dollar higher; Nasdaq‑100 fell 4.77% (≈5%) – its steepest decline since April 2025 – and S&P 500 dropped 2.64%, reflecting risk‑off sentiment that also depressed crypto prices.
Listed Companies and Sectors: MicroStrategy Inc (ticker MSTR) saw its shares decline 6.90% after the firm disclosed its first Bitcoin sale since 2022, a small portion of its holdings; semiconductor stocks posted double‑digit losses; broader technology sector under pressure.
Investment Flows: U.S. spot Bitcoin ETFs recorded net outflows over the past two weeks, removing a key demand source; CoinGlass data show approximately $1.6 bn of crypto positions liquidated in the last 24 hours, with Bitcoin accounting for >$500 m and Ether >$400 m; institutional sentiment weakened.
Interest Rates, Inflation, and Liquidity: The payroll surprise caused investors to scale back expectations of imminent Fed rate cuts, effectively tightening monetary outlook; higher Treasury yields signaled reduced liquidity for risk assets.
Fiscal or Monetary Policy: No direct fiscal measures mentioned; the market reaction is driven by monetary‑policy expectations tied to the Federal Reserve’s future rate path.
