Fears of Artificial Intelligence in Global Markets: Volatility with Wall Street

AI Doubts Shake Wall Street

Recently, the volatility in Wall Street has led to a significant drop in high-value technology stocks and cryptocurrencies. Fed Governor Christopher Waller indicated that there may be more interest rate cuts, while U.S. Treasuries are trying to recover their losses.

Decline in Technology Stocks

With the erosion of confidence in artificial intelligence companies, a noticeable decline was seen in technology stocks. For instance, Nvidia Corp. shares fell by 3.8%. These developments accelerated losses as the S&P 500 broke through an important technical level, with the index declining by 1.2%. Additionally, the Nasdaq 100 experienced a 1.9% drop.

Global Market Indicators

U.S. futures indices are flat, while European markets are trending upward. The MSCI Asia Pacific Index fell by 0.7%, with South Korea’s Kospi and Japan’s Nikkei 225 indices experiencing losses of over 1%.

Currency and Oil Market Winds

The Bloomberg Dollar Index, which rose by 0.21% on Wednesday, continues to maintain its gains. However, geopolitical risks in Venezuela and Russia overshadow the still weak global supply outlook. Oil prices have also raised attention by increasing for the second consecutive day.

Fluctuations in Oil Prices

Brent crude initially rose to $61, but lost some of its intraday gains due to U.S. President Donald Trump not addressing developments in Venezuela. U.S. crude WTI is trading above $56.