\u201cWe\u2019re seeing a lot of rotation from growth stocks to value stocks, moving from tech into other sectors, and a lot of dispersion of individual stock results,\u201d said Steve Sosnick of Interactive Brokers.<\/p>\n
Investors were spooked on Tuesday by news that AI startup Anthropic \u2013 which created the Claude chatbot \u2013 had unveiled a tool that could be used by firms to carry out legal work.<\/p>\n
The announcement hit firms in the software, financial services and asset management industries, with the tech-heavy Nasdaq Composite ending Tuesday down 1.4%.<\/p>\n
\u201cInvestors fear the AI juggernaut will cut deeply into earnings as agents take over workflows and replace more traditional programmes,\u201d said Susannah Streeter, chief investment strategist at Wealth Club.<\/p>\n
Downbeat sales projections from Advanced Micro Devices compounded the darker mood, with the company\u2019s share price tanking more than 15%.<\/p>\n
Investors will be looking at earnings reports by Google-parent company Alphabet after the close of trading on Wednesday and Amazon on Thursday for indications about AI investment and revenue.<\/p>\n
Massive spending to build data centres to run AI applications helped push equity markets to record highs last year, but recurring concerns that a bubble may be forming have recently prompted volatility.<\/p>\n
These concerns were primarily that the hefty investments in AI may never make returns, while Tuesday\u2019s selloff hit companies that could see their business activity disrupted by the technology.<\/p>\n
Meanwhile, data showed private sector employment in the United States rose by a less-than-expected 22,000 jobs in January.<\/p>\n
The \u201cupdate serves as a reminder that the US remains far from a robust jobs market,\u201d said eToro analyst Bret Kentwell.<\/p>\n
If the jobs report prepared by the US Government, delayed by the shutdown, \u201cshows a similar dynamic, it should at a minimum help keep the Fed from adopting an overly restrictive stance as the first quarter progresses\u201d, he added.<\/p>\n
The US Federal Reserve last week resisted pressure from the Trump Administration to cut interest rates, saying the US economy is expanding at a solid rate.<\/p>\n
Investors expect it may next cut rates in June or July if the weakness in the labour market continues.<\/p>\n
Separate data showed the US services sector maintained growth in January, boosting sentiment.<\/p>\n
In Europe, shares in Danish pharmaceuticals group Novo Nordisk plunged more than 17% in Copenhagen after the maker of Ozempic and Wegovy anti-obesity drugs warned of lower sales this year.<\/p>\n
Official data showed eurozone inflation eased below the European Central Bank\u2019s 2% target in January, with the ECB expected to leave interest rates unchanged on Thursday.<\/p>\n
The Bank of England is also expected to hold borrowing costs the same day.<\/p>\n
Key figures at around 4.30pm GMT<\/p>\n
New York \u2013 Dow: Up 0.7% at 49,605.49 points<\/p>\n
New York – S&P 500: Down 0.2% at 6903.30<\/p>\n
New York – Nasdaq Composite: Down 1.1% at 23,010.07<\/p>\n
London – FTSE 100: Up 0.9% at 10,402.34 (close)<\/p>\n
Paris – CAC 40: Up 1.2% at 8274.56 (close)<\/p>\n
Frankfurt – DAX: Down 0.7% at 24,603.04 (close)<\/p>\n
Tokyo – Nikkei 225: Down 0.8% at 54,293.36 (close)<\/p>\n
Hong Kong – Hang Seng Index: up 0.1% at 26,847.32 (close)<\/p>\n
Shanghai – Composite: up 0.9% at 4102.20 (close)<\/p>\n
Euro\/dollar: down at $1.1798 from $1.1829 on Tuesday<\/p>\n
Pound\/dollar: down at $1.3651 from $1.3701<\/p>\n
Dollar\/yen: up at \u00a5156.71 from \u00a5155.74<\/p>\n
Euro\/pound: up at 86.44p from 86.30p<\/p>\n
Brent North Sea Crude: Down less than 0.1% at $67.27 per barrel<\/p>\n
West Texas Intermediate: Down 0.3% at $63.03 per barrel<\/p>\n
– Agence France-Presse<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cWe\u2019re seeing a lot of rotation from growth stocks to value stocks, moving from tech into other sectors,…\n","protected":false},"author":2,"featured_media":268145,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[152440,138,15293,22048,2550,28164,1437,305,36424,220,111,139,69,90,25259,60045,69723,152441,781,5424,370,152442,16483,13558],"class_list":["post-268144","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-aifuelled","tag-business","tag-continued","tag-disruption","tag-even","tag-fears","tag-global","tag-have","tag-largely","tag-markets","tag-new-zealand","tag-newzealand","tag-nz","tag-on","tag-rolls","tag-selloff","tag-spurred","tag-stabilised","tag-stock","tag-street","tag-tech","tag-techled","tag-though","tag-wall"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/268144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=268144"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/268144\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/268145"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=268144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=268144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=268144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}