Global Market Fears of Artificial Intelligence: Volatility with Wall Street

AI Doubts Shake Wall Street

Recently, the volatility experienced on Wall Street has led to a significant decline in high-value technology stocks and cryptocurrencies. Fed Governor Christopher Waller indicated that further interest rate cuts may be possible, while U.S. Treasury bonds are trying to recover their losses.

Decline in Technology Stocks

With the erosion of confidence in AI companies, there has been a noticeable drop in technology stocks. For instance, shares of Nvidia Corp. decreased by 3.8%. These developments accelerated losses as the S&P 500 broke through a significant technical level, causing the index to decline by 1.2%. Additionally, the Nasdaq 100 lost 1.9%.

Global Market Indicators

U.S. futures indexes are stable, while European stock markets are trending up. The MSCI Asia Pacific Index fell by 0.7%, while South Korea's Kospi and Japan's Nikkei 225 indexes experienced 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 still overshadow the already weak global supply outlook. Oil prices have also drawn attention by rising 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's lack of comment on developments in Venezuela. U.S. crude oil WTI is trading above $56.