Dow tumbles more than 800 points as tariff uncertainty and AI disruption fears
a day ago
- #AI-disruption
- #stock-market
- #tariffs
- Stocks fell due to uncertainty about President Trump's new proposed tariffs and concerns about artificial intelligence.
- The Dow closed lower by 823 points (1.66%), marking its worst day in one month. The S&P 500 fell 1.04%, and the Nasdaq Composite dropped 1.13%.
- Trump announced a tariff hike to 15% on imports after the Supreme Court struck down previous tariffs.
- The VIX (Wall Street’s fear gauge) jumped 12%, surpassing 20 points, signaling elevated market volatility.
- Tech and AI stocks showed lingering weakness, with the Nasdaq down 5.8% since late October.
- AI disruption fears contributed to declines in stocks like American Express (-7.2%), DoorDash (-6.6%), and KKR (-8.89%).
- IBM shares dropped 13.15% after Anthropic's blog post about AI tool Claude impacting COBOL modernization costs.
- Gold rose 3.4%, surpassing $5,200 per troy ounce, as investors sought safe havens.
- Bitcoin dropped over 4%, hovering around $64,600, down nearly 50% from its October peak.
- The US dollar weakened slightly, and Treasury yields fell as investors bought bonds.