The stock market experienced another significant decline on February 12, reflecting ongoing volatility and rising investor anxiety surrounding the implications of artificial intelligence (AI) technologies. The Nasdaq Composite index decreased by 1.5%, while the broader market index and the Dow Jones Industrial Average fell by 1.1%; the Dow lost 530 points. The S&P 500 also saw a drop of approximately 1.04%, and Bitcoin declined by 2.45%.
Experts cited concerns over the evolving role of AI in various industries as a principal factor contributing to the overall drop in stock prices. The market has been in a turbulent phase, with a notable plunge occurring on February 5, which was briefly followed by a rebound the next day after tech industry leaders downplayed fears about AI disrupting their business operations. However, investors have become increasingly apprehensive, worrying about potential adverse effects on business models and rising unemployment rates linked to the adoption of AI technologies.
In earnings reports from leading companies like Microsoft and Alphabet, the parent company of Google, there were projections of significant increases in AI-related spending. Despite this optimism regarding technological investment, Microsoft’s share price suffered a considerable 12% drop on the announcement, marking its worst trading day since March 2020. This reaction illustrates the market’s sensitivity to perceived risks associated with AI, fueling a broader trend of declines and uncertainty in the investment landscape.
