Monday, February 2, 2026

Stocks Recoup Losses After Volatile Day; AI Narratives Diverge

U.S. equities closed Monday's tumultuous session effectively unchanged, managing to claw back deep pre-market losses that were fueled by pervasive fears of an 'AI bubble' and escalating geopolitical anxieties. The day ultimately highlighted a market with a highly selective appetite for risk, rewarding strong corporate narratives while punishing perceived weaknesses.

The artificial intelligence sector continued its highly divergent performance. Data analytics firm Palantir (PLTR) extended its significant post-market surge, buoyed by robust Q4 earnings and an upbeat outlook driven by accelerating AI demand. Similarly, Alphabet's (GOOGL) autonomous driving unit, Waymo, secured a substantial $16 billion in funding, now valued at $126 billion, affirming confidence in big tech's 'other bets.' Adding to the positive AI-related news, semiconductor equipment maker Teradyne (TER) soared on an 'absolute blowout' forecast fueled by AI demand, and Sandisk (SNDK) was noted for its 143% January surge driven by rising memory prices.

However, not all AI-linked names fared as well. Chip leader Nvidia (NVDA) remained under pressure throughout the day amidst reports that OpenAI is actively seeking alternative chip suppliers, raising questions about concentration risk and its premium valuation. Meanwhile, electric vehicle giant Tesla (TSLA) plummeted, grappling with reports of sharp sales declines in Europe and China, a price target cut, and news of a collapsed multi-billion dollar supplier deal, highlighting broader challenges in the EV market.

Beyond tech, Intel (INTC) provided a positive counterpoint, confirming a memory chips collaboration with Softbank (SFTBY). The broader market found crucial support from stronger-than-expected ISM Manufacturing PMI data earlier in the day and significant M&A activity in the energy sector. Precious metals also saw a rebound after an earlier 'historic wipeout,' with analysts citing a positioning reset. The day underscored a cautious market, quick to penalize perceived weaknesses but ready to reward compelling growth stories.

AI Narrative Continues to Divide Post-Close; Intel Confirms Chip Deal

U.S. equities closed Monday's tumultuous session largely unchanged, having clawed back deep pre-market losses. The post-market session continues to highlight a market grappling with stark divergences, particularly within the technology and AI sectors, as investors remain highly selective in rewarding corporate news.

A significant development came late, with Intel (INTC) and Softbank (SFTBY) announcing a memory chips collaboration, providing a fresh positive catalyst for the semiconductor giant and validating earlier rumors. This bright spot for Intel comes amidst analyst commentary suggesting long-term bullishness for Microsoft (MSFT), offering a counter-narrative to earlier scrutiny over its AI investments.

Meanwhile, crude oil prices stabilized after earlier tumbles driven by eased U.S.-Iran tensions. On the downside, insider selling weighed on several names in post-market headlines, with major share disposals reported for Charles Schwab (SCHW) and Ionis Pharma (IONS), adding to individual stock pressures. The day's mixed bag of news points to a cautious yet active market as the trading week progresses.

Market Closes Flat After Wild Session; AI Narrative Divides, Intel Shines

U.S. equities closed Monday's tumultuous session largely unchanged, successfully clawing back deep pre-market losses driven by 'AI bubble' fears and geopolitical anxieties. The day was defined by significant internal rotation and a stark divergence in the highly scrutinized artificial intelligence sector, with investors selectively rewarding strong corporate narratives.

The AI landscape presented a mixed picture. Data analytics firm Palantir (PLTR) extended its post-market surge after reporting robust Q4 earnings and an upbeat outlook, buoyed by accelerating AI demand. Similarly, Alphabet's (GOOGL) autonomous driving unit, Waymo, secured a substantial $16 billion in funding, valuing the venture at $126 billion, affirming confidence in big tech's 'other bets.' Tech giant Apple (AAPL) also delivered record-breaking Q1 earnings, propelled by strong iPhone demand and services growth, further underscoring pockets of strength.

However, the sector faced headwinds elsewhere. Chip leader Nvidia (NVDA) remained under pressure from reports that OpenAI is seeking alternative chip suppliers, intensifying competition concerns. Meanwhile, Tesla (TSLA) plummeted on reports of sharp sales declines in Europe and China, a price target cut, and news of a collapsed multi-billion dollar supplier deal, highlighting challenges in the EV market.

Beyond tech, Intel (INTC) jumped on rumors of a major manufacturing deal and insider buying, providing a fresh positive corporate story. The broader market also found support from a stronger-than-expected ISM Manufacturing PMI and optimism surrounding a new U.S.-India trade deal, helping to counter the day's early gloom. However, underlying macroeconomic concerns persisted, with a Federal Reserve official publicly dissenting against the recent interest-rate pause, advocating for further cuts and signaling ongoing debate within the central bank. The day ultimately reflected a cautious market, quick to punish perceived weakness but ready to reward compelling growth stories.

Market Ends Flat After Volatile Session; AI Narrative Divides Post-Close

U.S. equities closed Monday largely flat, managing to recover from a tumultuous pre-market plunge driven by 'AI bubble' fears and geopolitical anxieties. However, the post-market session continued to highlight a market grappling with stark divergences, especially within the artificial intelligence sector, as investors selectively rewarded strong narratives while remaining cautious.

The AI sector saw both continued strength and underlying scrutiny. Data analytics firm Palantir (PLTR) extended its post-market surge, buoyed by robust Q4 earnings and an upbeat outlook driven by accelerating AI demand. Further validating big tech's 'other bets,' Alphabet's (GOOGL) Waymo unit is reportedly targeting a significant $16 billion funding round at a $110 billion valuation, with Alphabet itself contributing a substantial portion, underlining confidence in its autonomous driving ambitions. Additionally, Google Cloud struck a five-year AI partnership with Liberty Global. Elsewhere, materials science company Corning (GLW) landed a substantial $6 billion AI deal with Meta Platforms (META), underscoring the ongoing demand for infrastructure buildout.

Beyond AI, other corporate actions captured attention. Abbott Laboratories (ABT) saw its CEO make a personal $2 million stock purchase after a post-earnings dip, signaling strong insider confidence following the company's Q4 report. However, the broader macro environment presents lingering uncertainties: a Federal Reserve official publicly dissented against the recent interest-rate pause, advocating for further cuts, while reports indicated foreign investors are scaling back U.S. exposure amid fiscal concerns and trade policy uncertainty continues to disrupt global production networks. The day ultimately reflected a cautious market, selectively rewarding strong corporate stories while remaining sensitive to broader macroeconomic headwinds.

Post-Market Buzz: Palantir Soars, Apple Shines, AI Narrative Diverges

U.S. equities closed Monday largely flat, recovering from a tumultuous pre-market plunge, but the post-market session brought significant individual stock movement and further clarity on the prevailing AI narrative. While the broader indices ended unchanged, the day underscored a market grappling with stark divergence.

Data analytics giant Palantir (PLTR) stole the post-market spotlight, surging significantly after reporting robust Q4 earnings and offering an upbeat outlook, driven by accelerating demand for its AI tools. This provides a strong positive counterpoint to earlier 'AI bubble' fears. Likewise, Apple (AAPL) delivered record-breaking Q1 results, fueled by surging iPhone and Services revenue, with management highlighting its AI strategy including a collaboration with Google's Gemini.

However, the AI picture remains nuanced. Chip leader Nvidia (NVDA) remained under pressure as reports indicated OpenAI is actively seeking alternative chip suppliers, intensifying competition concerns. Similarly, Microsoft (MSFT) faced scrutiny over its massive AI infrastructure spending and reliance on OpenAI, with its stock experiencing a notable one-day dip. Further validating big tech's 'other bets,' Alphabet's (GOOGL) Waymo unit secured new funding at an increased $126 billion valuation.

Beyond tech, Elon Musk confirmed a massive merger between his rocket company SpaceX and AI startup xAI (X), reportedly at a $1.25 trillion valuation, signaling further consolidation in the private AI space. Elsewhere, specialty retailer MarineMax (HZO) soared on news of an exclusive $1 billion buyout offer, while New Jersey Resources (NJR) rose after raising its guidance. Conversely, trading platform Robinhood (HOOD) slid, weighed down by crypto weakness and broader risk-off sentiment impacting retail-focused assets, capping a day of significant internal churn across the market.

Stocks Flat After Volatile Day; Palantir Soars Post-Market, Robinhood Slides

U.S. equities closed a tumultuous session largely unchanged, successfully clawing back deep pre-market losses driven by 'AI bubble' fears and geopolitical anxieties. The day was marked by significant internal rotation, showcasing a market with a highly selective appetite for risk.

In post-market trading, the divergence within the tech sector continued. Data analytics firm Palantir (PLTR) surged significantly after reporting strong Q4 earnings and providing robust guidance, driven by accelerating AI demand. This positive AI story offered a counterpoint to some of the sector's earlier jitters. Conversely, trading platform Robinhood (HOOD) tumbled nearly 10%, weighed down by crypto weakness and a broader risk-off sentiment impacting retail-focused assets. Chip giant Nvidia (NVDA) also remained under pressure from reports that OpenAI is actively seeking alternative chip suppliers, intensifying competition concerns.

Elsewhere, specialty retailer MarineMax (HZO) soared on news of an exclusive $1 billion all-cash buyout offer from Donerail, while New Jersey Resources (NJR) rose after raising its guidance. The automotive sector saw some clarity as Ford (F) and Xiaomi firmly denied reports of a joint EV manufacturing venture in the U.S. Adding to macro concerns, Boeing (BA) and GE identified a potential issue with the 777X engine seal, and the looming threat of a government shutdown continued to cast a shadow over upcoming economic data releases.

Stocks End Flat After Volatile Day; Tech Dissent vs. Energy Strength

U.S. equities closed out a tumultuous session largely unchanged, effectively erasing a deep pre-market plunge driven by fears of an 'AI bubble' and geopolitical anxieties. While the major indices ended flat, the day was marked by significant internal rotation and a stark divergence within key sectors.

The technology sector experienced a day of stark contrasts. Electric vehicle leader Tesla (TSLA) was a significant laggard, plummeting on reports of sharp sales declines in Europe and China, a price target cut, and news of a collapsed multi-billion dollar supplier deal. Conversely, other AI-focused giants found support; Oracle (ORCL) surged after announcing plans to raise billions for its AI and cloud infrastructure buildout, while Amazon (AMZN) gained on reports it's in talks to invest up to $50 billion in OpenAI. Meanwhile, Alphabet's (GOOGL) Waymo unit is reportedly seeking $16 billion in funding, though Google's new 'Project Genie' tool weighed on gaming engine developer Unity Software (U).

Providing a crucial counterbalance to the tech turbulence was strength in the 'old economy' and industrials. A massive $58 billion merger between Devon Energy (DVN) and Coterra (CTRA) ignited the energy sector. Domestic economic resilience was further underscored by stronger-than-expected ISM Manufacturing PMI data. Individual stocks also rallied to new highs, with Walmart (WMT) hitting an all-time peak on membership growth, and Timken (TKR), Teekay Tankers (TNK), and Merck (MRK) all reaching 52-week or all-time highs. Biotech firm GeneDx (GNX) also highlighted its strong outlook, projecting significant revenue growth in rare disease diagnosis. The broader market demonstrated resilience, but the day underscored the market's current cautious and selective appetite for risk.

Market Churns Near Flatline Amid AI Crosscurrents

U.S. equities are going nowhere in afternoon trading, with the S&P 500 locked in a tight range around the unchanged mark. The placid surface masks a fierce tug-of-war underneath, as investors rotate capital, aggressively rewarding some corporate narratives while punishing others.

The divergence within the technology and semiconductor space is telling. Oracle (ORCL) is a standout gainer, with investors cheering the company's plan to raise billions to fund its AI and cloud infrastructure buildout. This suggests a continued appetite for AI-related capital spending. In sharp contrast, chipmaker Qualcomm (QCOM) is under pressure after multiple analysts lowered price targets ahead of earnings, citing concerns over a slowdown in the global handset market.

Adding to the cautious mood is fresh uncertainty out of Washington. Reports that a potential government shutdown could delay the release of key economic data, including the jobs report, are giving investors a reason to pause. This "data blackout" prevents a clear reading on the economy, contributing to the market's current state of indecision.

Markets Churn as Oracle Rallies, Tesla Slides

U.S. equities are locked in a tight, directionless range in afternoon trading, with the S&P 500 hovering right at the flatline. The market's placid surface belies a turbulent rotation underneath, as investors aggressively reward some tech narratives while punishing others, and positive macro news provides a floor against broader selling pressure.

The divergence within the AI trade is stark. Oracle (ORCL) is a standout performer, surging after the company announced it's raising billions to fund its AI and cloud infrastructure buildout. This indicates that investor appetite for AI-related capital expenditure remains strong, provided the strategy is clear.

In the other corner is Tesla (TSLA), which is acting as a major drag on the Nasdaq. The stock is falling sharply after reports of an EV sales slump in China, a price target cut from analysts, and news that its primary Chinese rival, BYD (BYDDY), also saw sales tumble. This flurry of negative data points is amplifying concerns about slowing global EV demand.

Helping to offset this tech weakness is a more constructive geopolitical tone, with reports of a new U.S.-India trade deal boosting sentiment and helping the market digest the session's sector-specific headwinds.

Markets Stall as Energy M&A Battles Tech Weakness

U.S. equities are locked in a sideways churn midday, with the S&P 500 hovering near the flatline after successfully fighting off a deep pre-market slide. The current price action reflects a market grappling with major crosscurrents, as strength in the energy sector is offsetting persistent weakness in high-profile tech names.

The biggest catalyst driving the session is a massive merger in the energy patch, with Devon Energy (DVN) and Coterra (CTRA) announcing a $58 billion deal that is lifting both stocks and buoying the sector. This follows reports of a government-led initiative to stockpile rare earth minerals, providing a tailwind for industrial and materials companies like MP Materials (MP).

This 'old economy' strength is providing a crucial offset to continued pressure on key tech stocks. Tesla (TSLA) is trading sharply lower after fresh data revealed significant sales declines in both China and Europe, fueling concerns about slowing EV demand. Meanwhile, AI bellwether Nvidia (NVDA) remains volatile amid conflicting reports about its investment strategy, keeping the broader tech sector on edge.

Market Churns as Tech and Industrials Diverge

U.S. equities are treading water at midday, holding near the flatline after successfully shaking off a deep pre-market panic. The narrative has shifted from the overnight's global risk-off fears to a domestic tug-of-war, with strong economic data and pockets of corporate strength battling persistent weakness in key technology names.

The AI sector remains a key battleground. While fears of a bubble are pressuring chip giant Nvidia (NVDA) following reports of stalled investment talks with OpenAI, other players are surging. Snowflake (SNOW) is a notable outperformer after announcing its own major partnership with OpenAI, creating a clear divergence within the AI trade.

Meanwhile, strength in the 'old economy' is providing crucial support for the broader market. Retail behemoth Walmart (WMT) is trading at all-time highs after reporting record membership growth, while industrial bellwether Caterpillar (CAT) is also gaining on a significant analyst price target increase. This resilience is keeping the major indices afloat as tech finds its footing.

Strong Manufacturing Data Quells Overnight Fears

Following a volatile pre-market session that pointed to a sharp sell-off, U.S. markets are showing resilience, fighting back to near the flatline. The key catalyst for the rebound appears to be a much stronger-than-expected ISM Manufacturing PMI report, which registered its highest reading since 2022. This sign of domestic economic strength is directly countering the overnight narrative of a global risk-off move driven by fears of an AI bubble and geopolitical tensions.

The strong economic print is giving investors a reason to look past the weakness in Chinese markets, where EV makers like BYD reported weak January sales. Here at home, big-cap energy is providing support, with ExxonMobil (XOM) trading higher after a strong earnings beat and a commitment to aggressive share buybacks. Meanwhile, positive analyst notes are helping stabilize tech giants like Amazon (AMZN) after a shaky pre-market.

Market Fights to Stabilize After Overnight Rout

U.S. equities are opening on a surprisingly steady note, attempting to shake off a deeply negative pre-market session that saw a global flight from risk. The sharp plunge forecasted by futures overnight has not materialized at the opening bell, as investors digest a wave of conflicting headlines centered on the artificial intelligence sector.

The key counterbalance to the overnight "AI bubble" fears comes from fresh reports of massive potential capital injections. News that Amazon (AMZN) is in talks to invest up to $50 billion in OpenAI is directly offsetting earlier anxiety about a stalled Nvidia (NVDA) deal. Separately, Alphabet (GOOGL) is getting a lift from reports its Waymo unit is seeking funding at a massive $110 billion valuation, reframing the narrative around its 'other bets' segment.

However, the pre-market pessimism has not entirely evaporated. Lingering concerns over the return on investment from heavy AI spending are weighing on names like Microsoft (MSFT). Meanwhile, Tesla (TSLA) is under significant pressure, grappling with the fallout from a collapsed multi-billion dollar supplier contract and reports of slowing growth.

Tech Wreck Looms as AI Anxiety Boils Over

The market is poised for a brutal opening bell, with U.S. futures indicating a sharp drop led by the tech sector. The risk-off sentiment that began overnight in Asia has intensified, driven by a dramatic reversal in the artificial intelligence narrative that has propped up valuations for months.

Fears of an AI bubble are now the primary catalyst for the sell-off. Investor confidence was shaken by reports that a major investment from Nvidia (NVDA) into OpenAI has stalled, coupled with growing concerns over the return on investment from massive AI spending at companies like Microsoft (MSFT). Adding to the sector's woes, Tesla (TSLA) is under pressure following a report detailing the collapse of a multi-billion dollar supplier deal and separate data showing weak European registrations.

While tech is the epicenter of the rout, there are isolated pockets of strength. Rare earth and industrial stocks are seeing pre-market interest following reports of a Trump administration plan to stockpile strategic minerals, with automakers like General Motors (GM) and Stellantis (STLA) said to be involved. On the earnings front, Tyson Foods (TSN) posted a strong beat, but bellwether Disney (DIS) delivered a mixed report with a profit miss, failing to provide any meaningful offset to the overwhelmingly negative macro mood.

Tech Leads Futures Lower as AI Doubts Mount

U.S. stock futures are pointing to a sharply lower open, extending a global rout as the narrative shifts from AI enthusiasm to acute anxiety. The tech-heavy Nasdaq 100 is leading the declines, with futures down nearly 1%, as specific, negative catalysts begin to hit the sector's biggest players.

The "AI bubble" fears that sparked the overnight sell-off in Asia have been given fresh ammunition. A key report indicates that a potential mega-investment from chip leader Nvidia (NVDA) into OpenAI has stalled, raising questions about the sustainability of the sector's sky-high valuations. This is compounding pressure on other mega-caps, with Tesla (TSLA) also trading lower on data showing weak European registrations.

This tech-specific weakness is piling onto the broader macro fears that have defined the overnight session, including jitters over a more hawkish Fed and rising geopolitical tensions. However, the first wave of pre-market earnings is providing some counterpoints. Tyson Foods (TSN) posted a strong beat on both revenue and profit, citing solid demand. Meanwhile, Disney (DIS) delivered a mixed report, with strong theme park revenue offset by a decline in net profit due to higher costs, failing to inspire confidence in the current risk-off environment.

AI Hype Hits a Wall, Deepening Pre-Market Rout

U.S. futures are pointing to a sharply lower open as the global flight from risk intensifies, with the artificial intelligence narrative that previously buoyed markets now becoming a primary source of anxiety. The latest blow comes from reports that a potential mega-investment from Nvidia (NVDA) into OpenAI has stalled, directly fueling the "AI bubble" fears that first sparked the sell-off in Asian markets overnight.

The souring sentiment is being compounded by fresh negative data points from overseas. Chinese EV makers are flashing warning signs after market leader BYD reported a 30% year-over-year drop in January sales, adding a layer of global economic concern to the tech-specific anxiety. This follows a brutal session in Asia that saw a trading halt in Korea and warnings from Chinese property developers.

Even companies aggressively pursuing AI are facing investor skepticism. Oracle (ORCL) is trading lower in the pre-market despite announcing a multi-billion dollar plan to expand its cloud business, as investors appear more focused on the immense cost and delayed profitability. This environment is punishing any company-specific negative news, with names like Ford (F) also under pressure following the announcement of a major NHTSA probe.

Futures Dive as Hawkish Fed Fears Join Global Rout

U.S. stock futures are extending their deep overnight losses as a new catalyst—fear of a more hawkish Federal Reserve—is being added to the potent cocktail of anxieties gripping global markets. The pre-market session indicates a sharply negative open as the flight to safety accelerates.

Reports are now explicitly citing President Trump's nomination of perceived hawk Kevin Warsh to chair the Fed as a primary trigger for the sell-off. This has sparked fears of a less accommodative monetary policy, fueling liquidation across rate-sensitive assets. The rout in commodities has deepened, with both gold and crude oil tumbling as investors dump assets across the board.

This Fed-related anxiety is piling on top of the themes that have dominated the overnight session: concerns of an AI bubble that sparked a sell-off in Asia and rising geopolitical tensions. The result is a classic risk-off environment where even good news, like a strong UK manufacturing PMI report, is being completely ignored.

Even mega-caps are caught in the chaotic news flow. Amazon (AMZN) is facing conflicting headlines, with a price target increase from Citizens clashing with reports that its partnership with Saks will end during the retailer's bankruptcy.

Futures, Commodities Tumble in Global Sell-Off

The pre-market session is awash in red, with U.S. futures indicating a sharply negative open as a wave of selling that began in Asia now grips European markets. The risk-off sentiment is fueled by a potent mix of fears, starting with a rout in Asian tech stocks over concerns of an AI bubble, which was then amplified by geopolitical anxiety following the expiration of a key U.S.-Russia nuclear arms treaty.

The flight from risk is also hammering the commodity complex. Crude oil has plunged more than 3% after reports of potential progress in U.S.-Iran talks eased supply fears. In a sign of broad-based liquidation, gold is also trading sharply lower, with the negative price action overpowering a fresh price target increase from JPMorgan. Investors appear to be selling anything not nailed down to raise cash.

Amid the macro turmoil, some company-specific news is attempting to break through. Alphabet (GOOGL) is seeing pre-market interest on reports its Waymo unit is seeking funding at a $110 billion valuation. Similarly, M&A activity is providing a potential lift for Teck Resources (TECK) and BARK Inc. (BARK). However, these individual stories face a significant headwind from the overwhelmingly negative market mood.

Analyst Calls Clash With Overwhelming Risk-Off Tone

The pre-market session is dominated by the ongoing global flight from risk, with U.S. futures pointing to a sharply lower open. The narrative established overnight remains firmly in place: fears of an AI bubble, triggered by a rout in Asian tech, are being compounded by geopolitical anxiety surrounding a lapsed U.S.-Russia nuclear treaty.

This macro-driven sell-off is creating a difficult backdrop for company-specific news. While JPMorgan issued a significant upgrade for Autodesk (ADSK) to 'Overweight,' citing its industry leadership, such positive catalysts are struggling to gain traction. Conversely, the same bank's downgrade of Signify (LIGHT) to 'Neutral' after a Q4 miss is finding a more receptive, pessimistic audience.

Elsewhere, positive regulatory news for AstraZeneca (AZN) is also being overshadowed. The key takeaway for investors is that the broad market sentiment is overwhelmingly negative, and individual stock stories are taking a back seat to the larger rush for safety ahead of the opening bell.

Global Rout Spreads as Europe Braces for Plunge

The wave of selling that swept through Asian markets overnight is now crashing on Europe's shores, with futures indicating a sharply lower open across the continent. This extends the deeply negative tone set early Monday, where a flight from risk has become the market's only theme, effectively erasing last week's AI-driven optimism.

The rout is being driven by a potent cocktail of fears. What began as a sell-off in Asian tech centered on a potential AI bubble has been magnified by significant geopolitical jitters following the expiration of a key U.S.-Russia nuclear arms treaty. The earlier trading halt in Korea and loss warnings from Chinese property developers have only solidified the risk-off mandate for global investors.

This macro-driven panic is completely overshadowing any positive corporate news. Reports of a new $400 million funding round for EV maker Polestar (PSNY) and strong earnings from Italian bank Intesa Sanpaolo (ISP.MI) are being largely ignored as investors prioritize capital preservation ahead of what looks to be a volatile week.

Futures Plunge as Geopolitical Fears Fuel Rout

The risk-off wave that swept through Asian markets overnight is intensifying, with U.S. futures pointing to a sharply lower open. The sell-off, initially sparked by concerns over an AI bubble which led to a trading halt in Korea, is now being amplified by a significant escalation in geopolitical tensions.

The primary new catalyst for the flight to safety is the expiration of a key U.S.-Russia nuclear arms treaty, stoking fears of a renewed arms race. This macro-level anxiety is compounding existing market worries, providing investors another clear reason to shed exposure ahead of the U.S. open.

The negative sentiment is being reinforced by further poor data from Asia, where Chinese property giant China Vanke issued a stark loss warning, adding to regional instability. The widespread pain is evident across asset classes, with commodities and cryptocurrencies like Bitcoin (BTC) continuing their sharp descent as capital flees to traditional safe havens.

Global Sell-Off Deepens as Korean Market Halts Trading

The risk-averse tone set in early futures trading has escalated into a full-blown rout across Asian markets. The most dramatic development occurred in South Korea, where the Kospi index plunged sharply enough to trigger a market-wide, sell-side circuit breaker, temporarily halting all trading. The move highlights the severity of the sell-off, which appears centered on the very technology and AI-related names that led global markets higher in previous weeks.

Adding to the turmoil, commodity markets are also under severe pressure. Crude oil has plummeted over 4%, as fears of a supply shock from Middle East tensions have eased significantly. The catalyst appears to be comments from former President Trump indicating that Iran was engaged in serious talks with Washington, reducing the immediate geopolitical risk premium. Precious metals and other risk assets like Bitcoin (BTC) are also caught in the downdraft, suggesting a broad flight to safety.

This widespread liquidation across equities and commodities is setting a deeply negative backdrop for the upcoming U.S. session. The AI enthusiasm that propped up the market last week has quickly curdled into anxiety about stretched valuations, and investors are now shedding risk wherever they can find it.

Futures Slump as Risk-Off Mood Grips Global Markets

The trading week is starting on a decidedly negative note as U.S. stock futures are pointing to a lower open, following a sharp sell-off across Asian markets. Overnight trading has been dominated by a flight from risk, with assets like Bitcoin also tumbling.

The primary catalyst appears to be a resurgence of anxiety over a potential bubble in the artificial intelligence sector. This narrative is being fueled by heavy losses in Asian chipmakers, with South Korea's Kospi index tumbling as giants like Samsung (SSNLF) and SK Hynix (HXSCF) posted significant declines. This sentiment marks a sharp reversal from last week, where AI enthusiasm was a key pillar of support for the market.

This defensive posture comes at a critical juncture, as investors brace for a wave of earnings reports from major tech players this week. Reports from Google (GOOGL), AMD, Amazon (AMZN), and Palantir (PLTR) will be scrutinized not just for their performance, but for any signs that the AI-driven rally has gotten ahead of fundamentals.