Stocks Fall on AI, Tariff Jitters as Bonds Climb: Markets Wrap
(Bloomberg) — Stocks fell and bonds rose as renewed anxiety over the impact of artificial intelligence on company profits joined lingering tariff uncertainty in squelching risk appetites. Bitcoin briefly slid below $65,000. Gold rallied.
As investors weighed the implications of the latest trade developments, the S&P 500 slid about 1%, led by a selloff in software companies. DoorDash Inc. and American Express Co. tumbled after Citrini Research published an article detailing a hypothetical scenario on the impact AI could have on markets and the global economy.
Rising anxiety over the impact of AI disruption on multiple sectors resurfaced, with investors dumping shares of any company seen at the slightest risk of being displaced. Worries also have grown despite solid results from megacaps amid doubts over whether massive investments in the technology will pay off soon.
“The AI disruption story probably hasn’t run its course yet,” said Chris Larkin at E*Trade from Morgan Stanley.
Following the Supreme Court’s decision on Friday to nix President Donald Trump’s “reciprocal” tariffs, the White House swiftly announced plans to replace the prior tariffs with a new, across-the-board 15% levy on US imports.
“The push and pull with tariffs is likely to be a distracting theme for markets for the remainder of the year, albeit with less volatility than the initial shock last April,” said Michael Landsberg at Landsberg Bennett Private Wealth Management.
While Treasury yields dropped, traders are now fully pricing in the next Federal Reserve rate cut only in September. Fed Governor Christopher Waller said his decision on whether to support easing at the next policy meeting will hinge on upcoming jobs data.
The New York Stock Exchange and Nasdaq said they will be operating their markets as normal on Monday as a winter storm sweeps through the New York area.
Corporate Highlights:
Anthropic PBC Chief Executive Officer Dario Amodei will meet with US Defense Secretary Pete Hegseth on Tuesday, according to a senior Pentagon official, as contract talks with the artificial intelligence startup remain deadlocked over the company’s insistence on guardrails for use of its technology. Gilead Sciences Inc. agreed to buy US cancer-focused biotech Arcellx Inc. for as much as $7.8 billion as it seeks to boost its drug pipeline. Merck & Co. is splitting its main pharmaceutical unit in two as it prepares for the approaching patent expiry of its best-selling drug. Novo Nordisk A/S’s next-generation obesity shot delivered less weight loss than Eli Lilly & Co.’s rival blockbuster in yet another blow to the Danish company’s attempts to regain lost ground in the weight-loss market. Estée Lauder Cos. is open to acquisitions as the owner of the Jo Malone and Le Labo brands enters the second year of a turnaround plan under Chief Executive Officer Stéphane de La Faverie. Domino’s Pizza Inc. reported a larger-than-expected rise in comparable sales, as consumers were drawn to the pizza chain’s budget-friendly pies. Jefferies has turned bearish on Deere & Co. after the shares of the agricultural machinery giant rallied to an all-time high last week, saying the stock is pricing in a rebound in the farm economy that appears “elusive.” Live Nation Entertainment Inc. is asking a federal judge to pause the antitrust case brought by the Justice Department and dozens of state attorneys general a week before trial, so it can appeal his ruling last week declining to throw out the case. Honeywell International Inc. has slashed its price to acquire Johnson Matthey Plc’s Catalyst Technologies in a move to save the deal from falling apart. Chevron Corp. signed agreements on Monday to explore taking over Iraq’s West Qurna 2 project, the country’s second-biggest oil field that’s operated by Russia’s Lukoil PJSC. Some of the main moves in markets:
Stocks
The S&P 500 fell 1.2% as of 11:05 a.m. New York time The Nasdaq 100 fell 1.4% The Dow Jones Industrial Average fell 1.6% The Stoxx Europe 600 fell 0.6% The MSCI World Index fell 1% Bloomberg Magnificent 7 Total Return Index fell 1.5% Philadelphia Stock Exchange Semiconductor Index fell 1.4% IShares Expanded Tech-Software Sector ETF fell 5.1% The Russell 2000 Index fell 2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1790 The British pound was little changed at $1.3491 The Japanese yen rose 0.4% to 154.40 per dollar Cryptocurrencies
Bitcoin fell 3.3% to $65,372.54 Ether fell 3.3% to $1,886.6 Bonds
The yield on 10-year Treasuries declined five basis points to 4.03% Germany’s 10-year yield declined three basis points to 2.71% Britain’s 10-year yield declined four basis points to 4.31% The yield on 2-year Treasuries declined three basis points to 3.45% The yield on 30-year Treasuries declined four basis points to 4.69% Commodities
West Texas Intermediate crude was little changed Spot gold rose 1.4% to $5,180.64 an ounce ©2026 Bloomberg L.P.
