Markets Overview

  • ASX SPI 200 futures up 0.5% to 8,943.00
  • S&P 500 up 0.3% to 6,855.44
  • Dow Average up 0.2% to 49,599.24
  • Aussie up 0.2% to 0.7083 per US$
  • US 10-year yield little changed at 4.0521%
  • Australia 3-year bond yield fell 3.3 bps to 4.21%
  • Australia 10-year bond yield fell 2.4 bps to 4.68%
  • Gold spot down 2.2% to $4,880.88
  • Brent futures down 1.9% to $67.37/bbl

Economic Events

  • 10:30: (AU) Jan. Westpac Leading Index MoM, prior 0.08%
  • 11:00: (AU) Australia to Sell A$1.2 Billion 4.25% 2036 Bonds on Feb. 18
  • 11:30: (AU) 4Q Wage Price Index QoQ, est. 0.8%, prior 0.8%
  • 11:30: (AU) 4Q Wage Price Index YoY, est. 3.4%, prior 3.4%

Traders struggling to assess the outlook for artificial intelligence whipsawed stocks in another volatile session on Wall Street. Gold and silver tumbled. Bitcoin extended its February rout.

The S&P 500 erased a nearly 1% slide, but almost gave up its gain in the last stretch of trading. A closely watched ETF tracking software firms slipped 2.2%. In late hours, Meta Platforms Inc. said it agreed to deploy “millions” of Nvidia Corp. processors over the next few years.

The turmoil unleashed by AI reflects concerns that are increasingly at odds. One is that it’s set to disrupt segments of the economy so deeply that investors dump stocks of any company seen at the slightest risk of being displaced. The other is a skepticism that AI spending will pay off soon.

In what’s turning out to be a great quarter for corporate earnings growth, mentions of AI disruption on management calls almost doubled compared to the previous quarter, a Bloomberg News analysis of transcripts shows.

Markets could face more near-term volatility because of concerns about AI disruption and capital expenditures, “weak seasonals and crowded momentum trades,” according to Morgan Stanley’s Michael Wilson.

The market is still close to records, but it may not feel that way to some investors because of the sharp selloffs that seem to derail upswings almost as soon as they begin, noted Chris Larkin at E*Trade from Morgan Stanley.

“If that theme persists, it could result in a bumpy road for the market, even if the overall trend is to the upside,” he said.

The S&P 500 rose 0.1%. The index briefly breached its average price of the past 100 days. The yield on 10-year Treasuries advanced one basis point to 4.06%. The dollar wavered. The pound slid as data showing UK unemployment at a five-year high prompted bigger bets on rate cuts.