Wall Street plummets: Artificial intelligence and the Fed shake global markets

 

Los temores por el avance de la inteligencia artificial impulsan ventas masivas en sectores como software, servicios financieros y gestión patrimonial (Reuters)

Wall Street Plunges, Dragging Down Global Markets Amid Fears Over Artificial Intelligence and Fed Rates

By Anastacio Alegría

**NEW YORK, February 12 (IPU NEWS)** — Major U.S. stock indexes registered significant losses on Thursday as investors assessed the impact of **artificial intelligence (AI) on strategic sectors** and concerns about the **Federal Reserve's** monetary policy resurfaced.

The **S&P 500** fell 1.8%, the **Dow Jones Industrial Average** dropped 1.5%, and the **Nasdaq Composite**, heavily influenced by technology stocks, lost 2.3%. The decline spread to international markets, affecting European and Asian stock exchanges in a domino effect that reflects global financial interconnectedness.

La publicación de balances y los datos de inflación definen el ánimo de los inversores en un contexto de alta incertidumbre (Reuters)

Impact of Artificial Intelligence

Analysts point out that the current volatility is linked to the rapid adoption of AI in key industries, generating uncertainty about employment, productivity, and profitability for both technology and traditional companies. Sectors such as manufacturing, finance, and services are reviewing their investment and operational strategies to adapt to automation and advanced algorithms, which in turn is putting pressure on stock prices.

Doubts about Interest Rates

At the same time, investors are watching closely for potential moves by the Federal Reserve, which has maintained high interest rates to contain inflation. Recent comments from central bank officials have suggested that the Fed could maintain its restrictive monetary policy longer than expected, adding pressure to stock valuations.

“The combination of disruptive advances in AI and uncertainty about the Fed’s direction is generating a risk adjustment in the markets,” said Jessica Huang, a market analyst at a New York-based investment fund. “Investors are reassessing how much they are willing to pay for future growth in companies, especially in technology.”

El desplome de las acciones tecnológicas intensifica la volatilidad en Wall Street y genera presión global sobre los mercados bursátiles (Reuters)

Global Repercussions

The Wall Street sell-off immediately impacted Europe and Asia. London’s FTSE 100 fell 1.2%, Frankfurt’s DAX lost 1.5%, and Tokyo’s Nikkei 225 closed down 1.8%. Emerging market currencies also depreciated against the dollar, reflecting global investors’ risk aversion.

Analysts expect volatility to persist in the short term as markets adjust their expectations regarding the effects of AI and US monetary policy. Some investors are seeking refuge in safer assets, such as Treasury bonds or gold, while they assess the resilience of their portfolios in the face of increasing uncertainty.

“We are entering a period of readjustment, where prudence and diversification will be key to dealing with the volatility that will likely continue in the coming weeks,” Huang concluded.