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 noted that further interest rate cuts could be possible, while U.S. Treasury bonds are trying to recover their losses.

Decline in Technology Stocks

As confidence in AI companies wavers, a noticeable decline in technology stocks has occurred. For instance, Nvidia Corp. shares dropped by 3.8%. These developments accelerated losses after the S&P 500 breached an important technical level, causing the index to decline by 1.2%. Additionally, the Nasdaq 100 lost 1.9%.

Global Market Indicators

U.S. futures indices are flat, while European markets are showing gains. 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 rose by 0.21% on Wednesday and 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 not commenting on developments in Venezuela. U.S. West Texas Intermediate (WTI) crude is trading above $56.