U.S. stock futures rose late on Monday as markets attempted to stabilize amid renewed tariff scare, mounting fear of market disruption by AI, and a slate of upcoming product launches and earnings announcements.
Nasdaq 100 futures were up 0.4%, while S&P 500 futures were up by 0.3%, and Dow futures were up 0.1%. During Monday’s session, the Dow Jones Industrial Average had fallen 1.7%, while the S&P 500 slipped 1%, and the Nasdaq Composite declined 1.1%.
AI Ghost Scare Shakes U.S. Market
The main catalyst of the decline is fear surrounding the AI sector’s lightning growth. Pressure intensified after Anthropic hinted at new programming capabilities of its Claude model, raising concerns that the scale of development could disrupt large segments of the software, cybersecurity, financial services, and logistics industries.
Shares of Microsoft (MSFT), IBM (IBM), and CrowdStrike (CRWD) fell by 13%, 3%, and 10%, respectively. Meanwhile, American Express (AXP) and Mastercard (MA) dropped by about 7% and 6%.
Global capital market commentary, The Kobeissi Letter, said in an X post that Anthropic is “literally” targeting a new trillion-dollar industry every day, and added that every time a new Claude-based AI tool is released, stocks in that specific industry lose over $100 billion worth of market cap.
Traders are looking forward to the Anthropic event today, where new product announcements and demonstrations of Claude’s latest capabilities are expected.
In a recent report, Citrini Research suggested that widespread AI adoption could push unemployment levels towards 10%, adding fuel to the fire over concerns of the broader economic impact of the technology.
Trump’s 15% Tariffs Could Bring Greater Clarity to Global Trade
Meanwhile, trade tensions have returned after U.S. President Donald Trump announced plans to set the standard global tariff rate to 15%. This comes following the U.S. Supreme Court’s ruling that struck down the IEEPA emergency tariffs. This uncertainty, as well as the European Union’s decision to pause the ratification of its trade agreement with Washington, weighed on investor sentiment.
Wedbush Global’s head of tech research, Dan Ives, wrote in an X post that the tariff uncertainty, combined with the “AI ghose trade,” could pile more pressure on tech stocks in the near term. However, he suggested that the outcome could ultimately benefit tech supply chains through greater clarity on tariffs and their legal guardrails.
Investors Look Forward to U.S. Earnings Calls and Consumer Confidence Data Release
In broader markets, the yield on the benchmark 10-year U.S. Treasury note was around 4.03%, while gold traded near $5,240 an ounce after extending its gains for the fifth-consecutive session. Silver hovers around $88.05 an ounce.
Asian markets remained mostly high on Tuesday, with shares opening higher in Japan, South Korea, and Australia, but Hong Kong declined. Markets in Mainland China are set to reopen this week after the Lunar New Year holiday.
Investors and analysts are looking forward to the consumer confidence data release, wholesale inventories, and Home Depot’s earnings call on Tuesday. Meanwhile, Salesforce (CRM) and Snowflake (SNOW) earnings are due on Wednesday, followed by Nvidia (NVDA).
