Global Stocks Mixed as AI Fears Hit US Markets, Asia Gains

Global stock markets showed mixed performance on Tuesday as U.S. shares fell due to fears over artificial intelligence (AI) and new tariffs, while Asian markets and tech-related stocks gained.

U.S. markets slumped after a report from Citrini Research warned that AI could disrupt the human-centric economy, potentially hurting jobs and companies unable to adapt. The report also highlighted the risk of a deflationary spiral due to slow policy responses.

In Europe, early trading saw small losses: Germany’s DAX fell 0.2% to 24,952.11, France’s CAC 40 dipped less than 0.1% to 8,491.94, and Britain’s FTSE 100 closed down slightly at 10,673.99.

Asian markets mostly rose. Tokyo’s Nikkei 225 surged 0.9% to 57,321.09, led by chip testing equipment maker Advantest (up 4.5%) and machinery maker Disco Corp. (up 2.1%). South Korea’s Kospi climbed 2.1%, driven by Samsung Electronics (+3.6%) and SK Hynix (+5.7%). Taiwan’s Taiex gained 2.8%, while mainland China’s Shanghai Composite rose 0.9%. Hong Kong’s Hang Seng fell 1.8%, and India’s Sensex dropped 1.3%.

On Wall Street, the S&P 500 fell 1% to 6,837.75, the Dow Jones dropped 1.7% to 48,804.06, and the Nasdaq sank 1.1% to 22,627.27. Companies potentially threatened by AI faced steep losses: CrowdStrike fell 9.8% (25.3% down for the year), while AppLovin dropped 9.1% (43.5% down for the year). Investors await Nvidia’s profit report on Wednesday amid concerns over heavy AI-related chip spending by major tech firms.

U.S. markets were also impacted by President Donald Trump’s announcement of temporary 15% tariffs on certain countries, following a Supreme Court ruling that struck down his broader “reciprocal” tariffs. Traders remain cautious amid trade uncertainty.

In commodities, U.S. crude rose 31 cents to $66.62 per barrel, and Brent crude gained 30 cents to $71.41, fueled by concerns over potential military action by Trump against Iran.

Currency and crypto markets saw the U.S. dollar rise to 155.86 Japanese yen, while the euro fell to $1.1783. Bitcoin dropped 4.3% to $63,180.