Catenaa, February 08, 2026 – U.S. technology stocks and bitcoin rallied strongly on Friday, ending three days of heavy selling that rattled investors.
The Nasdaq Composite climbed 2.2 percent, cutting its weekly loss to 1.8 percent. Leaders such as Nvidia, Broadcom, and Intel drove gains, while Bitcoin jumped about 12 percent to above $70,000.
Despite Friday’s rebound, underlying market stress remains. Prior sessions saw deep declines in software and AI-linked stocks amid concern about lofty valuations. Analysts say the bounce likely reflects bargain hunting as much as fundamental improvement.
Major indices also rallied. The S&P 500 gained about 2 percent, and the Dow Jones Industrial Average topped 50,000 for the first time ever. The Russell 2000, tracking smaller companies, advanced around 3.6 percent.
Still, the week’s losses point to deeper investor skepticism about the tech sector’s near-term prospects. Software stocks, which posted steep declines earlier, also weakened overall sentiment.
Some strategists see a potential sector rotation, with buyers shifting from expensive AI-linked shares into cyclicals and value stocks. This pattern could broaden the rally beyond a narrow group of megacaps.
Bitcoin’s resurgence alongside equities suggests that risk appetite has not fully evaporated but remains fragile. Crypto markets have struggled in recent months amid dwindling speculative activity.
Investors will closely watch upcoming earnings and economic data. A sustained tech rebound may depend on clearer profit signals and progress in AI monetization. Broader market strength similarly hinges on resilient consumer demand. Analysts warn that short-term rallies can mask deeper structural shifts in tech valuations.
