US Tech Stocks Decline as Wall Street Worries Persist; Asian Markets Drop for Lunar New Year
Stock futures in the US declined Tuesday, with the S&P 500 futures down 0.4%, Nasdaq 100 futures down 0.8%, and Dow Jones futures down 83 points or 0.2%. Technology stocks, including Meta Platforms, Nvidia, Palantir, Micron, and Sandisk, faced declines amid fears of AI disruption impacting industry-specific software providers. The iShares Expanded Tech-Software Sector ETF (IGV) fell 1%, extending its 21% loss this year. Last week, major indices, including the S&P 500 and Dow, dropped over 1%, with the Nasdaq falling more than 2%, marking its longest losing streak since 2022. Concerns about AI's impact on sectors like real estate, trucking, and finance overshadowed recent softer consumer price index data and a strong jobs report. The volatility index (VIX) rose above 20 to 22.5, indicating increased market fear. Meanwhile, silver and gold prices declined, with silver falling 4% to $74.7 per ounce. In Asia, Japan’s Nikkei 225 dropped about 1% following weak economic data and profit-taking after recent gains, while markets in Australia and India showed slight movements. Most Asian markets were closed for Lunar New Year holidays. Oil prices were mixed, with US crude rising to $63.54 per barrel and Brent falling slightly. The US dollar weakened against the yen, and gold and silver prices dropped significantly. Investors remain cautious amid inflation concerns and ongoing AI investment fluctuations.
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