Nasdaq 100 Slumps 2% as AI Worries Take Hold – US Market Wrap
Prices fell across multiple asset classes as concerns over technology profits and weakness in commodities weighed on stocks. Gold and silver tumbled as investors sought safety in Treasuries, while a selloff in Bitcoin intensified.
The S&P 500 and Nasdaq 100 dropped 1.6% and 2%, respectively. Cisco sank 12% after a subdued margin outlook suggested rising memory-chip costs are pressuring profitability. All megacaps declined, and an ETF tracking software stocks fell 2.7%. Anthropic finalized a deal to raise $30 billion at a $380 billion valuation. Fears about AI disruption spread across sectors from logistics to commercial real estate.
Weeks of rising anxiety over AI’s impact on various industries appeared to evolve into a broader reassessment of risk after more than a year of steady gains across asset classes. Some analysts said gold’s sharp midday drop reflected traders raising cash to cover equity losses.
Despite solid earnings from megacaps, concerns about the durability of AI-driven growth have intensified, prompting widespread selling in technology shares. Worries have also grown that heavy AI-related capital spending could strain credit markets, particularly with risk premiums near their tightest levels since the financial crisis.
Equities posted their biggest decline in more than three weeks. Ahead of key inflation data, the 10-year Treasury yield fell seven basis points to 4.10%. A $25 billion auction of 30-year bonds drew record demand. Bitcoin traded below $66,000. Gold fell under $5,000. Silver plunged 11%, and oil dropped about 3%.
