Veteran economist and gold advocate Peter Schiff has issued a strong warning about the US stock market, according to reports from ET Now. Schiff highlighted that while technology stocks have been under pressure, the broader market has continued to show resilience. He noted that the Dow Jones was up more than 400 points despite the selloff in tech stocks, though he expects this strength may not last for long. The latest developments show Tesla stock closed last week at $313.03, down nearly 18% in five sessions and representing its steepest weekly loss since 2022, with two separate chart breakdowns now pointing to $296 as the next downside target.
Crypto-related stocks outperformed the broader market on Monday as investors shifted money away from artificial intelligence infrastructure companies and into digital asset firms, according to IBTimes. The rotation lifted cryptocurrency-focused companies even as major chip stocks declined and the broader market weakened. Among the biggest winners was Bitmine Immersion, which surged 11% after announcing it had increased its ether holdings by nearly 10,000 ETH, valued at approximately $19.4 million based on current market prices. Sharplink Gaming climbed 6%, while Strategy (formerly MicroStrategy) gained 7%, with the company recently choosing to strengthen its cash position for a fifth consecutive week instead of purchasing additional bitcoin.
Even companies with a primary focus on bitcoin mining were caught in the selloff, with Riot Platforms falling 5%, Mara Holdings declining 3%, and CleanSpark slipping 4%, as reported by IBTimes. Analysts say many of these stocks now trade together through sector exchange-traded funds, thematic investment baskets and algorithmic trading strategies, causing concerns affecting AI infrastructure to spill over into bitcoin miners regardless of their direct exposure to artificial intelligence. Owen Lau, an analyst at ClearStreet, told CNBC that growing worries about circular financing within the AI sector, combined with stronger competition from Chinese chipmakers, accelerated the shift toward alternative investment themes such as cryptocurrency.
As reported by ET Now, Schiff warned that the impact of the tech market weakness could soon spread to the broader equity market. The economist emphasized that the entire US stock market is overpriced, not just tech, suggesting that the current correction has only just begun. His remarks come at a time when technology stocks are experiencing heightened instability, with concerns over stretched valuations remaining large. The broader market concerns are reflected in the current volatility, with investors closely monitoring whether the weakness in technology stocks represents a temporary correction or the beginning of a broader market downturn.
