Market Highlights

Stocks fell and bonds rose as renewed anxiety over the impact of artificial intelligence on company profits joined lingering tariff uncertainty in squelching risk appetites. Bitcoin dropped below $65,000. Gold rallied. The S&P 500 slid 1%. Tech, delivery and payment shares got hit as Citrini Research laid out the potential AI risks to various industries. DoorDash Inc. and American Express Co. sank over 6.5%. An ETF focused on software firms lost 4.8%. International Business Machines Corp. tumbled 13% in its worst day since October 2000 as Anthropic said its Claude Code can help modernize COBOL, a programming language mainly run on IBM computers. The artificial intelligence-driven “scare trade,” fueled by concern over the impact of the technology on companies, showed signs of cooling as Asian shares and US equity-index futures advanced.

Stocks advanced while bonds and the dollar slipped as traders deemed the rejection of Donald Trump’s tariff program to be a potential stress on government financesthat is unlikely to change the economy’s course. After a brief drop, the S&P 500 bounced. The president, rebuked by Supreme Court justices earlier in his bid to impose far-reaching tariffs, said he’ll impose a 10% global levy on trading partners, and claimed that various categories of his existing program remain in place. Still, uncertainties about any potential budget shortfall kept a lid on the greenback and Treasuries. The dollar and S&P 500 futures declined as ambiguity over trade policy damped sentiment toward US assets and raised the prospect of heightened volatility across global markets.

A rebound in stocks gained traction amid easing jitters around artificial-intelligence disruption while a slew of data showed the US economy is holding up. Treasuries fell for a second straight day. Oil jumped. About 320 shares in the S&P 500 rose. That’s even as minutes of the last Federal Reserve meeting showed “several” officials suggested the central bank may need to raise rates if inflation stays above their goal. After a rout fueled by AI concerns, investors are seeking signs of a bottom. A gauge of chipmakers climbed 1% and an ETF tracking software firmsjumped 1.3% Stocks built on their technology-led rally as volatility tied to bets on artificial intelligence subsided, removing a key source of recent market anxiety.

Traders struggling to assess the outlook for artificial intelligence whipsawed stocks in another volatile session on Wall Street. Gold and silver tumbled. Bitcoin extended its February rout. The S&P 500 erased a nearly 1% slide, but almost gave up its gain in the last stretch of trading. A closely watched ETF tracking software firms slipped 2.2%. In late hours, Meta Platforms Inc. said it agreed to deploy “millions” of Nvidia Corp. processors over the next few years. US equity-index futures edged higher along with Asian stocks as the recent selling pressure tied to artificial intelligence appeared to stabilize. Precious metals rebounded.

Stocks and bonds posted small moves amid muted holiday trading after Friday’s benign US inflation data reinforced expectations that the Federal Reserve will cut interest rates this year. Futures on the S&P 500 were flatand Europe’s Stoxx 600 index gained 0.1%. NatWest Group Plc climbed 4.8% after Citigroup Inc. raised its price target on the UK lender. German bunds and Treasury futures were steady after US yields touched the lowest since December on Friday. With the US observing the Presidents’ Day holiday and mainland China’s markets closed for Lunar New Year holidays, trading volumes were thin. Still, the path of US interest rates remains in focus following the slower- than-expected US inflation print as traders fully price a Fed cut in July and the strong chance of a move in June

Wall Street got a degree of relief as relatively tame inflation data spurred bigger bets on Federal Reserve rate cuts, with bond yields falling. While most stocks gained, weakness in tech giants kept a lid on the market. Treasury two-year yields dropped to their lowest level since 2022 as traders priced in higher chances the Fed will slash rates more than twice this year. About 370 shares in the S&P 500 rose, but the gauge closed little changed at the end of its worst week since November. A gauge of megacaps lost 1.1%. Amazon.com Inc. saw its longest slide in almost 20 years. The Russell 2000 index of small firms climbed 1.2%. Bitcoin jumped. The consumer price index rose 0.2% in January, the smallest gain since July and restrained by lower energy costs. While services costs picked up last month, prices of core goods remained stable. The core CPI rose from a year ago by the least since 2021. The overall gauge also eased on an annual basis.

Prices buckled across several asset classes as concern about tech profits and weakness in commodities sent stocks down the most in over three weeks. Gold and silver tumbled as traders plowed money into the perceived safety of bonds. A rout in Bitcoin deepened. The S&P 500 and the Nasdaq 100 slipped 1.6% and 2%, respectively. Cisco Systems Inc. plunged 12% as a tepid margin outlook signaled higher memory-chip prices are taking a toll. All megacaps fell and an ETF tracking software firms slumped 2.7%. Worries about artificial-intelligence disruption engulfed industries from logistics to commercial real estate. In late hours, Applied Materials Inc. gave an upbeat forecast. Wall Street’s jitters over the outlook for the industry that has powered the bull market have grown despite solid results from megacaps, with traders dumping a broad range of tech shares. Besides all the worries over whether AI investments will pay off, fears about disruption have been mounting. The key event for traders on Friday will be the release of US January inflation data. The median forecast is predicting a year-over-year increase of 2.5% for the core consumer price index, which strips out food and energy.

A stronger-than-anticipated US jobs report spurred a slide in Treasuries as traders pared bets on Federal Reserve rate cuts in 2026. An initial rally in major stock benchmarks waned. Cryptocurrencies slumped. Short-dated Treasuries were hit the hardest, with two-year yields hovering near 3.5%. Money markets priced in the Fed’s next cut in July, from June previously. Almost 300 shares in the S&P 500 rose on hopes economic growth will fuel earnings, but the gauge was little changed as most megacaps fell. An ETF tracking software firmsslid 2.6%. Bitcoin sank to about $67,500. Asian equities advanced for a fifthday, stretching their lead over US peers this year as relatively cheaper valuations and firmergrowth prospects lured buyers. Treasuries held their losses after stronger US jobs data.

Wall Street traders gearing up for the key jobs report drove a rally in Treasuries after weak retail sales bolstered the case for the Federal Reserve to lower interest rates this year. Still, those bets weren’t enough to lift the S&P 500 to fresh all-time highs. Bitcoin sank. Ten-year yields dropped to the lowest in about a month, with money markets seeing slightly higher odds of three Fed cuts in 2026 - with two already fully priced in. About 300 shares in the US equity benchmark rose, but the gauge lost steam amid weakness in several tech names. A gauge of chipmakers dropped while an ETF tracking software firmstrimmed most of its earlier surge. Asian equities climbed to a record and the dollar declined ahead of Wednesday’s US jobs report after weak retail sales reinforced bets that the Federal Reserve will cut interest rates later this year.

Another rally in tech companies after an artificial intelligence-driven rout drove stocks higher ahead of economic data that will help shape the Federal Reserve outlook. Gold topped $5,000. The dollar fell. Following a surge that added $1 trillion to the S&P 500’s value at the end of last week, the index kept rising to approach its all-time highs. A gauge of chipmakers climbed 1.4% while an ETF focused on software names extended a back-to-back advance to almost 7%. Oracle Corp. jumped 9.6%. Alphabet Inc. embarked on a global bond spree to fund its AI ambitions. Equities extended their rally to an all-time high as a rebound in US technology shares gathered pace, easing pressure on markets after worries over outsized spending on artificial intelligence.