#GlobalTechSell-OffHitsRiskAssets

The phrase "Global Tech Sell-Off Hits Risk Assets" captures the dramatic market event from roughly February 3–6, 2026 (with ripples into the weekend), where fears over AI disruption to software businesses, massive unchecked AI capital spending, weak economic signals, and profit-taking triggered a sharp decline in tech stocks. This "risk-off" mood quickly spread to correlated high-risk assets like cryptocurrencies, precious metals, and speculative plays, leading to cascading losses amplified by high volume, thin liquidity, and leverage unwinds.
Here’s the complete, extended explanation with real headlines from major sources (Reuters, CNN, CNBC, Bloomberg, WSJ, Fortune, Business Insider, etc.) integrated for context, plus detailed impacts on prices, percentages, volume, liquidity, and more.
Major Headlines from the Event
"Selloff wipes out nearly $1 trillion from software and services stocks as investors debate AI's existential threat" — Reuters (Feb 4, 2026)
"Global software stocks hit by Anthropic wake-up call on AI disruption" — Reuters
"Dow soars by 1,200 points as Wall Street rebounds from tech meltdown" — CNN Business (Feb 6, 2026)
"The tech stock free fall doesn't make any sense, BofA says in rebuke to investors while doubling down on the sector's longevity" — Fortune (Feb 4, 2026)
"'Sell Everything' Takes Hold As Tech, Crypto, and Metals All Crack" — Business Insider (Feb 6, 2026)
"Equities sink in extended AI rout, bond yields dip, silver savaged" — Reuters (Feb 5, 2026)
"Global tech stocks erase $1.8 trillion in days as U.S. stock futures rebound and AI spending fears rattle markets" — The Economic Times
"Bitcoin drops 15%, briefly breaking below $61,000 as sell-off intensifies, doubts about crypto grow" — CNBC (Feb 5, 2026)
"Bitcoin plummets, driving $2 trillion tumble in crypto market value" — Reuters (Feb 5, 2026)
"Nasdaq Slumps Again as Jobs Data Collides With Tech Selloff" — The Wall Street Journal (Feb 5, 2026)
"Analysis-Investors chase cheaper, smaller companies as risk aversion hits tech sector" — Reuters/US News (Feb 8, 2026)
"Fear of AI Replacing Software Makers Hits Stocks. Here's What to Know." — The New York Times (Feb 6, 2026)
These headlines highlight the core narrative: AI tools (e.g., from Anthropic/Claude) suddenly felt like a real threat to SaaS profitability → massive tech selling → global risk aversion → spillover to crypto/metals.
Core Triggers
AI agents automating software tasks (legal, coding, compliance) raised "existential threat" fears for SaaS models.
Big Tech capex explosions questioned: Amazon ~$200B (2026), Alphabet up to $185B (55% above estimates), total Big Tech >$650B.
Macro: Weak U.S. jobs data, delayed rate-cut hopes, growth scare.
Profit-taking after 2025 rallies.
Tech Stocks Impacts (Epicenter: "SaaSpocalypse")
Software/SaaS:
S&P 500 Software & Services index: Down ~13% over six sessions, ~20-26% from peaks; erased ~$830B–$1T in value.
Headlines: "nearly $1 trillion" wipeout (Reuters); software basket ~$1T loss.
Key stocks: Salesforce/ServiceNow/Adobe/Workday/Intuit/Thomson Reuters down 7-20%+ in sessions; some 16-17%.
ETFs: iShares Expanded Tech-Software (IGV) down >24% YTD/period.
Broader Tech/Indices:
Nasdaq Composite: Worst multi-day routs (worst three-day since April); down 1.4-1.6% on heavy days (e.g., -1.59% to ~22,540 on Feb 5); weekly -1.8%; erased >$1.5T mid-week.
Global tech: $1.8T erased in days (four sessions).
S&P 500: Down 0.8-1.23% key days (to ~6,798); weekly minor loss.
Dow: Resilient; +2.47% (~1,207 points) on Feb 6 to record >50,000 first time.
Volume & Liquidity:
Volume: High on drops (500-600M+ shares Nasdaq heavy days, above average) = panic/forced selling.
Liquidity: Thinned sharply — wider spreads, collapsed order book depth → exaggerated swings, choppy rebounds.
Volatility: VIX >20 briefly.
Spillover to Risk Assets
Cryptocurrencies:
Bitcoin: From ~$126K (Oct 2025) → ~44-50% drop; lows ~$60K–$63K (e.g., $60,057 Feb 5; below $61K briefly).
Single-day: 12-17% falls (largest since 2022/FTX).
Weekly/monthly: Worst since 2022; YTD down 28-30%+.
Broader crypto: $700B–$2T market cap loss since peaks.
Headlines: "Bitcoin drops 15%, briefly breaking below $61,000"; "plummets, driving $2 trillion tumble".
Volume: Massive liquidations ($1B–$5B+ 24h, longs crushed).
Liquidity: Dried up — thin depth + leverage → routs; high correlation to Nasdaq/tech (~0.73–0.91).
Other Risk Assets:
Silver: Down 9-20% (to ~$72 lows); gold sold off.
EVs/speculative: Broad "sell everything" hits.
Rebound & Mechanics
Partial recovery: Feb 6 fierce bounce (Nasdaq +2.18%, S&P +1.97%, Dow +2.47% to 50K+); called "overdone" (BofA/Fortune).
Rotation: To small-caps/value (Russell 2000 outperformed), cyclicals.
Lingering: Software weak; options protection demand high.