Markets declined Thursday afternoon as concerns over artificial intelligence’s rapid expansion and its potential to disrupt multiple industries weighed on investor sentiment.
Bitcoin, the largest digital asset by market value, fell 2.5% to trade below $66,000, dragging the broader crypto market lower. Ethereum changed hands near $1,900 as digital assets tracked equity losses.
The S&P 500 shed 1.1% while the Nasdaq dropped more than 1.4%. Among the mega-cap technology names, Apple retreated 5%, Tesla lost 3%, and both Meta and Amazon slid 2.5%. Nvidia dipped 0.5%, with Alphabet and Microsoft flat on the day.
Commodities suffered steep declines. Gold fell 3% to roughly $4,930, and silver tumbled nearly 10% to $76.
Software stocks extended a punishing stretch tied to fears that new AI tools could replicate core offerings or squeeze margins. Salesforce slipped 2% on the session and has now lost more than 31% since January. The iShares Expanded Tech-Software Sector ETF fell 3% and sits approximately 32% off its recent peak.
Attention now turns to Friday’s inflation data. Economists polled by Dow Jones forecast January consumer prices rising 0.3% on a monthly basis for both headline and core measures.
The U.S. dollar index edged higher to 96.93, signaling a move toward defensive positioning.