Stocks Make a Wary Comeback Following AI Unrest – Europe Market Wrap
Stocks made a faint return after fears about the disruptive influence of AI fuelled a broad selloff.
S&P 500 futures increased 0.2% on Tuesday, after falling 1% the day before following a Citrini Research research describing probable AI-fueled structural disruptions. Gold was marginally lower, but it maintained most of Monday’s haven-driven gains. The Yen plummeted as PM Takaichi expressed opposition to additional interest rate increases.
The so-called AI fright trade has emerged as a major trend in stock markets, with selling spreading beyond software to insurance brokers, private credit, cybersecurity, and even real estate. The flight is just one of several developments taking place beneath the surface of a US market that will remain mostly unchanged in 2026 after years of tech-driven growth.
Most tech megacaps advanced little ahead of Nvidias reports on Wednesday. Nasdaq 100 futures were up 0.2%. Treasuries were unchanged, with the 10-year yield at 4.04%. The Dollar remained unchanged.
After Trump’s new 10% worldwide tax went into force on Tuesday, and a schedule for a projected 15% rate is still unclear, investors will be looking for any additional comments on trade in his State of the Union address.
