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AI Fears Tank Asian Markets, Gold Surges
24 Feb
Summary
- Asian shares fell amid AI profit impact fears on Wall Street.
- US 10-year Treasury yields dropped, while gold prices climbed.
- New US tariffs and upcoming Nvidia results add to market jitters.
Asian equity markets opened with declines on Tuesday, mirroring a fresh wave of anxiety originating from Wall Street concerning the profit implications of artificial intelligence across various industries. This uncertainty spurred a rally in safe-haven assets, with Treasuries and gold prices seeing significant gains, while Bitcoin experienced a slump.
US markets saw the S&P 500 slide on Monday, with technology, delivery, and payment sectors bearing the brunt of the selloff. International Business Machines Corp. experienced a substantial drop following news regarding AI's potential to modernize COBOL programming language. This reflects a broader market trend where companies perceived to be at risk of AI disruption are facing intense selling pressure.
The macroeconomic outlook is further complicated by shifts in US trade policy, with plans for new across-the-board tariffs potentially impacting international trade relations. In addition, upcoming corporate events, such as Nvidia's earnings report and key economic data releases, are adding to market speculation and influencing Federal Reserve rate-setting considerations.
Commodities experienced mixed movements, with oil fluctuating amidst ongoing US-Iran talks and copper facing pressure due to demand uncertainties linked to US tariff policies. Several corporate announcements also shaped market sentiment, including positive outlooks from JPMorgan Chase and Paramount Skydance's revised offer for Warner Bros. Discovery.
