US Stocks Crash as AI Concerns Increase – Nasdaq down 2%
US equity markets took a big hit in trading yesterday as renewed concerns surrounding AI-related costs weighed heavily on investor sentiment. The Dow Jones Industrial Average fell 1.34% to 49,451, while the S&P 500 declined 1.57% to 6,832. The Nasdaq led the way lower, retreating 2.03% to close at 22,597 as growth-oriented names led the downturn. US data compounded the cautious tone, as weekly jobless claims rose more than anticipated. The softer labour market signal prompted a rally in bond markets, with the US 2-year Treasury yield declining 5.4 basis points to 3.456% and the 10-year yield falling 8.3 basis points to 4.098%. Despite the pullback in yields, the US Dollar Index was broadly unchanged, edging marginally higher by 0.02% to 96.92. In commodity markets, prices also moved lower. Oil retreated amid increasing optimism that diplomatic efforts in the Middle East may ease geopolitical tensions, while expectations of excess supply from an IEA report in 2026 further pressured the market. Brent declined 2.54% to US$67.65 per barrel, and WTI dropped 2.55% to US$62.98. Gold also fell in trading, declining 3.19% to US$4,922.19.
Gold Markets Remain Nervous
Gold prices slumped more than 3% yesterday, underscoring the extreme volatility that has gripped the market in recent weeks. The decline appeared driven by a mix of profit-taking and technical selling, with stop orders reportedly triggered below the US$5,000 level. Market participants remain cautious, wary of any move gaining momentum in either direction amid the current choppy conditions. These swings continue to feel flow-driven rather than fundamentally motivated, with risk selling in other assets failing to provide the usual lift for gold. Traders are bracing for further turbulence in the sessions ahead as they assess whether the relentless upward trend seen over the past year has more room to run, or if a broader correction is finally emerging.
Inflation Data in Focus for Markets Today
There is a strong focus on inflation data today in the market, with key numbers due out of both the US and Switzerland, and these releases are likely to play a pivotal role in shaping expectations for monetary policy in both countries. The Asian session is expected to start on the back foot after big losses on Wall Street overnight, and there is little on the macroeconomic calendar to disrupt that sentiment. The London session will see a focus on Swiss markets, with the CPI data (exp 0.0%) due out, and traders are expecting moves in the franc if we see a deviation from expectations, with the risk that a negative number could put pressure on the SNB to move back to negative interest rates. The main event of the day will come early in the New York session, with the key CPI numbers due out, with the market expecting a 0.3% increase for the month-on-month numbers and for the year-on-year figure to drop down to 2.5%. Any misses on these expectations could see the market remain lively through to the closing bell.
The post General Market Analysis – 13/02/26 first appeared on IC Markets | Official Blog.