Investors are increasingly cautious about how fast artificial intelligence could reshape business models, which is pressuring software firms and anything seen as vulnerable to automation. At the same time, the release of new AI models and solutions keeps concerns elevated over the erosion of the competitive edge of current leaders. Key stocks such as Nvidia, Meta, and Alphabet were lower at the open, reinforcing the risk-off bias.
The markets are ending the week on a low note as the global selloff continued in Asia and Europe this morning, prompted by rising uncertainty stemming from the U.S. economy. Doubts about a much-anticipated December interest rate cut from the Fed are mounting, with the likely outcome obscured by patchy data after Washington's government shutdown. Wall Street was bumpy yesterday. The S&P 500 and Dow Jones posted contractions of more than 1.6%, while the Nasdaq Composite fell by 2.3%.
Bitcoin traded higher on Thursday, holding near USD 103,000, as markets welcomed news that US President Donald Trump signed a bill ending the record 43-day government shutdown. The resolution lifted sentiment, with traders now turning their focus to the backlog of data releases. The data could offer new insight into labor market conditions and could influence the Federal Reserve's next policy move. Softer figures could reinforce expectations for another rate cut in December, lending support to Bitcoin and other risk assets.
Gold edged slightly higher above USD 4,000 per ounce on Monday, stabilizing after a period of selling pressures. Gold benefited from the Federal Reserve's rate cut but could come under pressure as markets consider Powell's comments. The Fed Chair suggested that further easing in December was not guaranteed. Markets now price in roughly a 70% probability of another reduction, down from more than 90% before his comments.
JPMorgan Chase CEO Jamie Dimon issued a sobering assessment of the American economy in an interview with CNBC on Tuesday, acknowledging clear signs that it's growing weaker and expressing uncertainty over its future trajectory. Still, he stopped short of making a recession call, saying that there is such a range of data that it's hard to parse. "We get data like you wouldn't believe. The government data is important. Our own data is important."
Stocks were poised to add to recent gains as futures ticked higher ahead of crucial inflation reports. The consumer price index will provide clues on tariffs' impact on inflation.
