Market Volatility Spikes as S&P 500 Plunges 3.6% Amid Bitcoin's $82,000 Stumble

Wall Street Tumbles as S&P 500 Set to Open Down 3.6%

The US equity markets are expected to open sharply lower today, with the S&P 500 index set to drop 3.6% at the opening bell. This would be the largest single-day decline for the index since October 2020, and the biggest top-10 all-time daily drop since the index's inception in 1957.

The sudden downturn in the markets comes as investors grapple with concerns over the ongoing impact of the COVID-19 pandemic, as well as the potential for interest rates to rise in the coming months. The Dow Jones Industrial Average is also expected to open down around 3.2%, while the Nasdaq Composite is set to drop 3.9%.

The decline in the markets is being led by a sell-off in technology and growth stocks, which have been among the best-performing sectors in recent years. The likes of Amazon, Microsoft, and Alphabet are all down by around 4% or more in early trading.

Meanwhile, in the cryptocurrency space, Bitcoin is attempting to hold above the $82,000 level. The world's largest cryptocurrency by market capitalization has been trading in a tight range in recent days, with many investors eyeing the $82,000 level as a key support zone.

The sudden volatility in the markets has left many investors scrambling to adjust their portfolios. "This is a classic example of a market correction," said one market analyst. "We've seen a lot of speculation and momentum-driven buying in recent months, and now we're seeing the opposite. It's a good opportunity for investors to take a step back, reassess their portfolios, and look for opportunities to buy quality stocks at discounted prices."