NEW YORK, Feb 17 – U.S. stocks decline in early trading on Tuesday amid ongoing debates over artificial intelligence’s impact, while gold prices slide following progress in U.S.-Iran nuclear negotiations.
Market Overview
The major U.S. indexes reverse early gains as investor caution grows. The Dow Jones Industrial Average drops 319.99 points, or 0.64%, to 49,181.86. The S&P 500 falls 58.83 points, or 0.85%, to 6,778.24, and the Nasdaq Composite sheds 262.64 points, or 1.15%, to 22,286.53. The Philadelphia SE Semiconductor index lags significantly behind.
AI-Driven Investor Concerns
Recent worries center on excessive corporate spending in AI and its potential to disrupt job markets across industries. “The conversation about AI rose to the top of market concerns about two weeks ago, regarding the negative effect on employment in a broad variety of industries, and it’s continuing,” states Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “There’s a lot of validity in that AI will result in less demand for certain types of workers. It clearly has affected the tone of the market over the last couple of weeks.”
Federal Reserve officials address these issues today, with Governor Michael Barr discussing “Artificial Intelligence and the Labor Market” and San Francisco Fed President Mary Daly covering AI’s economic implications.
US-Iran Nuclear Talks Advance
Progress emerges in U.S.-Iran discussions, with both sides agreeing on “guiding principles” for ongoing nuclear dispute negotiations, though a final deal remains distant, according to Iran’s Foreign Minister Abbas Araqchi. Tuz views this positively: “It’s an optimistic starting point. It’s way too early to tell, but the fact that they’re talking and haven’t gotten more aggressive is positive.”
Global Market Reactions
European and global markets show mixed responses while monitoring U.S.-Iran developments and AI’s business effects. MSCI’s world stock gauge slips 7.68 points, or 0.74%, to 1,034.96. The pan-European STOXX 600 edges down 0.02%, and FTSEurofirst 300 holds flat at a 0.00% change. Emerging market stocks dip 2.34 points, or 0.15%, to 1,555.52. Asia-Pacific shares outside Japan rise 0.04% to 796.06, but Japan’s Nikkei falls 239.92 points, or 0.42%, to 56,566.49.
Currencies and Commodities
The dollar strengthens ahead of Federal Reserve meeting minutes that may signal interest rate moves. The dollar index climbs 0.45% to 97.54, with the euro down 0.37% at $1.1806 and the dollar up 0.23% against the yen at 153.86.
Bitcoin drops 2.86% to $66,873.69, and Ethereum falls 2.4% to $1,950.90.
U.S. Treasury yields vary: the 10-year note yield decreases 1.7 basis points to 4.039%, the 30-year falls 2.9 basis points to 4.6701%, and the 2-year rises 1.2 basis points to 3.422%.
Crude oil eases on reduced supply fears from U.S.-Iran talks, with U.S. crude down 1.53% to $61.93 per barrel and Brent declining 2.56% to $66.89. Gold hits a one-week low, with spot prices falling 2.56% to $4,865.59 per ounce and U.S. futures dropping 3.31% to $4,855.90.
