US Futures Drop as AI Worries Linger; Gold Slides: Markets Wrap
(Bloomberg) — US equity futures declined as artificial-intelligence concerns damped sentiment, with Wall Street poised to resume trading after a holiday break. Treasuries edged higher and gold slid.
Contracts on the Nasdaq 100 index retreated 0.8% and those on the S&P 500 dipped 0.4% as all members of the Magnificent Seven US tech stocks declined in premarket trading. A gauge of perceived risk in US high-grade corporate credit reached its highest since Nov. 25. Spot gold dropped toward $4,900 an ounce.
US traders are returning to their desks eying firms’ swelling AI budgets, while also wary of the technology’s potential to hurt industries outside the tech sector. Meanwhile, Iran talked up military drills near the Strait of Hormuz — at the same time that the country is undertaking a fresh round of indirect nuclear negotiations with the US.
There’s “lingering anxiety about whether AI spending will be profitable enough, concerns about competition, and a broader de-risking from the most crowded trades after a very strong run,” said Aneeka Gupta, macroeconomic research director at WisdomTree.
A record number of investors say companies are spending far too much, according to Bank of America Corp.’s latest fund manager survey. A quarter of participants saw an “AI bubble” as the top tail risk to markets, while 30% said capital expenditure on AI by the big tech companies was the most likely source of a credit crisis.
The risk-off mood and last week’s slower inflation print buoyed Treasuries, lowering the yield on the 10-year note two basis points to 4.03%. The yen, historically seen as a haven, strengthened 0.3% against the dollar.
Iranian Drills
Brent pared losses to trade around $68.60 a barrel after Iranian state TV in the Islamic Republic reported that parts of the Strait of Hormuz, one of the world’s most important oil-shipping lanes, will be closed for “several hours” on Tuesday as part of Iran’s military exercises.
The drills, announced previously, come as Iran and the US start a second round of negotiations in Geneva.
US President Donald Trump has threatened to strike Iran unless it agrees to a deal curbing Tehran’s nuclear program in exchange for sanctions relief. He’s mobilized warships and fighter jets near Iran in response to a recent deadly crackdown by the regime there following mass protests.
Data Tuesday showed US private payrolls rose an average of 10,250 per week in the four-week period ending Jan. 31, according to a preliminary estimate from ADP Research and the Stanford Digital Economy Lab.
Investors will be following comments from Fed Governor Michael Barr later in the day on the labor market and AI, while San Francisco Fed President Mary Daly discusses AI and the economy. The minutes from the Fed’s January meeting on Wednesday may also offer a fresh read on the economy.
Elsewhere, other precious metals followed gold’s retreat, with silver tumbling 2% and platinum also falling. Bitcoin dropped 1.1% to $68,091.
China, Hong Kong and several Asian markets are shut for the Lunar New Year.
What Bloomberg Strategists Say:
“After spending most of the last two years favouring risk-off products, speculators’ risk-on exposure has hit its highest level since February 2024. Their timing could be off, however. Stocks are faltering as tech starts to lag, with the market questioning the vast AI infrastructure spending commitments. And 10-year US yields have dropped quite sharply this month. That move appeared to catch macro funds out.”
— Simon White, macro strategist. For the full analysis, click here.
Corporate Highlights:
Warner Bros Discovery Inc. has agreed to temporarily reopen sale negotiations with rival Hollywood studio Paramount Skydance Corp., setting the stage for a potential second bidding war with Netflix Inc. Anthropic PBC has partnered Indian technology firm Infosys Ltd. to develop advanced artificial intelligence solutions for companies across sectors including telecommunications and financial services. Apple Inc. said on Monday it is holding a product launch on March 4, with the company preparing to announce several new devices in the coming weeks. Danaher Corp. is nearing a roughly $10 billion deal to acquire US medical technology firm Masimo Corp., the Financial Times reported, citing unidentified people familiar with the matter. BHP Group’s shares soared after the company said earnings for the six months to the end of December rose by more than a fifth, thanks to a surge in copper prices. Hyatt Hotels Corp. Executive Chairman Tom Pritzker said he’s retiring from his position at the company and won’t stand for reelection to its board, citing an association with the late disgraced financier Jeffrey Epstein. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.4% as of 8:28 a.m. New York time Nasdaq 100 futures fell 0.8% Futures on the Dow Jones Industrial Average fell 0.3% The Stoxx Europe 600 was unchanged The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1827 The British pound fell 0.6% to $1.3541 The Japanese yen rose 0.2% to 153.09 per dollar Cryptocurrencies
Bitcoin fell 1% to $68,137.35 Ether fell 0.7% to $1,984.15 Bonds
The yield on 10-year Treasuries declined two basis points to 4.03% Germany’s 10-year yield declined three basis points to 2.72% Britain’s 10-year yield declined four basis points to 4.36% Commodities
West Texas Intermediate crude rose 1.2% to $63.62 a barrel Spot gold fell 1.5% to $4,918.90 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Aya Wagatsuma.
©2026 Bloomberg L.P.
