Overview
The U.S. stock market closed lower, driven by fears of AI tools threatening established software companies. This resulted in heavy selling across software and fintech sectors, affecting major alternative investment firms on Wall Street.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News Story
The launch of Anthropic's AI tools intensified concerns, leading to significant declines in affected stocks. While AI was previously a growth driver, the focus has shifted to companies potentially destabilized by AI. FedEx and Walmart, however, witnessed gains due to improved performances, with Walmart breaking the $1 trillion market cap.
Tomorrow's Economic Indicators
| Time (EST) | Event |
|---|---|
| 9:00 AM | US MBA Mortgage Applications |
| 10:15 AM | US January ADP Nonfarm Employment Change |
| 11:45 AM | US January S&P Global Services PMI |
| 12:00 PM | US January ISM Services PMI |
| 3:30 PM | US EIA Crude Oil Inventories |
General Opinion
As AI developments create turbulence, the market is witnessing a rotation into cyclical stocks, reflecting optimism about the U.S. economy's recovery. Investors are adjusting portfolios, engaging in careful AI sector investments, and discerning potential winners from losers amidst growing market volatility.
