Wall Street Faces Second Day of Losses Amid AI Concerns

US markets experienced a second consecutive day of losses on Thursday, with investors expressing ongoing concerns about the potential disruptions posed by artificial intelligence. The Dow Jones Industrial Average and the S&P 500 both fell by 1.1%, while the Nasdaq Composite saw a sharper decline of 1.5%. This downturn reflects broader anxieties regarding the impact of AI on employment and traditional business models.

The technology sector emerged as a significant contributor to the day’s losses. According to CNBC, most of the so-called “Magnificent Seven” stocks, which include major tech firms, faced pressure, each slipping between 2% and 3% during the session. This downturn highlights the fragility of investor confidence in tech giants amid evolving market dynamics.

In contrast, European markets showed resilience. The pan-European Stoxx 600 index closed up 0.7% on Thursday, buoyed by a series of encouraging corporate earnings reports. While performance varied across exchanges, some European stocks reached record highs, fueled by a significant asset-manager acquisition and positive results from two leading French companies.

Asian markets mirrored Wall Street’s lackluster performance. Tokyo’s Nikkei 225 ended the day virtually unchanged, while Hong Kong’s Hang Seng index fell 0.9%. In Shanghai, the exchange managed a slight gain of 0.1%. On the other hand, the S&P/NZX50 in New Zealand rose by 0.18%, reaching a three-week high, albeit with a narrow margin of gainers to decliners, at 65 to 69.

In corporate news, global rubber goods supplier Skellerup reported record half-year earnings, upgrading its full-year forecast. The company noted an 11% increase in revenue to $183.47 million and a 20% rise in after-tax profit to $28.93 million for the six months ending December. Other notable performers included ANZ Banking Group, which increased by 8.95%, and KMD Brands, which saw a rise of 3.92%.

Conversely, several companies faced significant declines. Eroad fell by 6.73%, followed by Pacific Edge with a 4.35% drop, My Food Bag at 4.08%, and Green Cross Health down 3.38%.

In Australia, the S&P/ASX200 index closed up 0.32%, initially on track for a record high before a substantial sell-off of technology stocks tempered gains.

Meanwhile, Mercedes-Benz Group reported a substantial financial hit, citing $1.2 billion in tariff costs that contributed to a 57% decline in full-year profit. The German automotive manufacturer’s operating profit for 2025 was recorded at 5.8 billion euros ($11.4 billion), falling below analyst expectations of 6.6 billion euros. The company attributed these challenges to competitive pressures in China, rising production costs, and currency fluctuations, which reflect broader industry struggles.

In a significant move regarding digital communication, Russia has blocked access to WhatsApp, affecting an estimated 100 million users. The Kremlin has promoted a state-backed messaging service named Max as an alternative. WhatsApp has criticized this action as a backward step in user privacy and safety, asserting that it will strive to maintain connectivity for its users. The move follows accusations from Russia’s telecom regulator, Roskomnadzor, regarding compliance failures related to data storage and security measures.

In today’s coverage, various issues are highlighted, including a grieving father’s petition to Parliament for banks to restrict alcohol transactions on children’s payment cards and discussions around superfast bank payments. Reports indicate that Stats NZ will release December migration figures today, while Oceania Healthcare is set to inaugurate a new retirement village in Pukekohe, and South Port will publish its half-year financial results.

This latest market activity indicates a complex interplay of technological anxiety, corporate performance, and regulatory developments that continue to shape the global economic landscape.