AI Fears, Trade War Tensions Drive U.S. Stocks Down
The Dow Jones Industrial Average hemorrhaged 821.91 points — a 1.66 percent decline — closing at 48,804.06. The S&P 500 surrendered 71.76 points, or 1.04 percent, settling at 6,837.75, while the Nasdaq Composite Index shed 258.8 points, or 1.13 percent, to finish at 22,627.27.
Sector performance within the S&P 500's 11 primary groups was sharply divided. Consumer staples climbed 1.46 percent and health gained 1.15 percent, emerging as the session's bright spots. At the other end, financials cratered 3.33 percent and consumer discretionary fell 2.15 percent, pacing the broader retreat.
A deepening "AI scare" seized markets after Anthropic unveiled a new tool capable of automating complex consulting functions. The announcement sent professional services stocks reeling — IBM collapsed 13.15 percent, with Accenture and Cognizant also closing sharply lower.
Trade anxiety compounded the damage. The brief optimism that followed a U.S. Supreme Court ruling Friday — which struck down previous tariffs — evaporated quickly after President Donald Trump unveiled a sweeping new round of "global tariffs." The European Union pushed back forcefully, insisting that "a deal is a deal" and demanding greater clarity from Washington.
Analysts at ING Bank cautioned that the new measures remain legally vulnerable and may reflect calculated political maneuvering rather than firm policy. "Friday's Supreme Court ruling sent a strong signal about the limits of presidential power. It can be seen as evidence that checks and balances in the U.S. still work. However, we don't think that President Trump will use the ruling as a backdoor option to back down on his tariff agenda," the bank's experts stated.
In corporate news, Novo Nordisk's U.S.-listed shares collapsed 16.43 percent to a near five-year low after clinical trial results for its obesity treatment fell short of those posted by rival Eli Lilly, whose stock surged 4.86 percent on the contrast. Meanwhile, Netflix shares dropped 3.37 percent amid intensifying political scrutiny over its board makeup and its pursuit of select assets from Warner Bros. Discovery.
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