Global Market Fears of Artificial Intelligence: Volatility with Wall Street

AI Doubts Rock Wall Street

Recent volatility on Wall Street has led to a significant decline 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 losses.

Decline in Technology Stocks

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

Global Market Indicators

U.S. futures are trading flat, while European stock markets are in positive territory. The MSCI Asia Pacific Index dropped by 0.7%, with South Korea’s Kospi and Japan’s Nikkei 225 indices experiencing losses 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 continue to overshadow the already weak global supply outlook. Oil prices have also drawn attention by rising for the second day in a row.

Fluctuation in Oil Prices

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