The stock market continued its plunge Feb. 5 amid investor concerns that experts attributed to increased uncertainty in the cryptocurrency and artificial intelligence worlds.
The Nasdaq Composite was down 0.8% shortly after 12:30 p.m., while the Dow Jones Industrial Average and S&P 500 each fell 0.7%, according to CNBC. The drops were similar on MarketWatch, which reported the same daily loss to the Nasdaq and declines of 0.6% for the other two indexes.
Shares of bitcoin dropped below $67,000, CNBC said, the lowest mark since President Donald Trump was elected to his second term in November 2024. The steep decline eliminated gains that had risen to more than $126,000 in October.
The trend appears to signal a growing pessimism about cryptocurrency after its popularity through most of 2025. Investors may also be wary after Nevada filed a lawsuit Feb. 4 against the crypto exchange Coinbase, alleging some of its event contracts violate state law.
Another factor behind the stock market struggles may be the growing impact of artificial intelligence, CNBC said. Google’s parent company Alphabet, one of the “Magnificent 7” stock companies, projected a significant increase in AI spending in its latest earnings result that likely scared off some investors.
Microsoft, another member of the prominent stock group, reported a similar outlook for its AI infrastructure Jan. 29. Shares were down 12% following the announcement, on track for the company’s worst day since March 2020.
This article originally appeared on NorthJersey.com: Stock market down, Bitcoin down, what are the reasons?