This came amid a plunge in U.S. stocks. The S&P 500 and technology sector-focused Nasdaq 100 indexes fell more than 1%, helped by renewed weakness in software stocks and private equity firms.
The iShares Expanded Tech-Software ETF (IGV) fell another 5% to a new 52-week low and is now down nearly 35% since October amid concerns that generative AI tools could disrupt traditional software business models.
The iShares Expanded Tech-Software Sector ETF (IGV) is an exchange-traded investment fund from iShares that tracks an index of North American software, interactive media and services companies. The fund provides exposure to the largest U.S. IT corporations, including leaders in the software, cloud and SaaS solutions sectors.
Whether it’s true or not, the current market consensus is that cryptocurrencies are just software, and the recent price movements of bitcoin and IGV correlate almost perfectly.
Adding to all of this is the uncertainty surrounding global tariffs after the Supreme Court limited President Trump’s previous use of broad duties, Joel Krueger, market strategist at LMAX Group, said in a note.
That triggered a classic risk-off situation, Krueger said. “Investors have moved away from speculative assets such as cryptocurrency, with bitcoin behaving more like a high-beta, high-risk asset than digital gold.”
