AI Fears, Tariff Uncertainty Hit Stocks; Gold Surges – US Market Wrap

Stocks declined and bonds rallied as renewed concerns about the impact of AI on corporate profits combined with lingering tariff uncertainty to dampen risk appetite. Bitcoin fell below $65,000, while gold advanced.

The S&P 500 dropped 1%. Technology, delivery and payments stocks were among the hardest hit after Citrini Research outlined potential AI-related risks across multiple industries. DoorDash and American Express fell more than 6.5%. An ETF tracking software companies slid 4.8%. IBM tumbled 13% in its worst session since October 2000 after Anthropic said its Claude Code can help modernize COBOL, a programming language widely used on IBM systems.

Rising fears of AI disruption have led investors to sell shares of companies perceived to be at risk of displacement. Those concerns have intensified despite solid results from megacaps, amid skepticism about how quickly large AI investments will translate into returns.

Investors also assessed fresh trade developments. Following the Supreme Court’s decision on Friday to block Trump’s reciprocal tariffs, the White House said it would replace them with a new blanket 15% tariff on US imports.

As caution prevailed, haven currencies outperformed and gold climbed above $5,200. Treasuries rallied, sending 10-year yields down five basis points to 4.03%.

Key events this week include Trump’s State of the Union address, Nvidia earnings on Wednesday and Friday’s producer price data. Fed’s Waller said his decision on rates in March will depend on incoming jobs data.