Global Stocks Fall Amid Ongoing AI Concerns in Tech Industry
Global stocks experienced significant declines on Thursday, largely fueled by rising concerns over the financial implications of the ongoing AI boom. The technology sector remains under pressure, prompting worries among investors. Central bank meetings in Europe added to the tension, while silver prices saw a steep decline, plummeting by 10 percent.
Market Overview and Economic Developments
The primary European stock exchanges showed a modest recovery early in the day. Tech stocks in the region rebounded by 1.8 percent, following a challenging period that saw a 7 percent drop over the last two sessions. Despite some stabilization, crucial economic indicators, such as the euro and German Bund yields, remained steady.
- Google’s parent company, Alphabet, announced a capital expenditure plan of up to $185 billion, significantly surpassing analysts’ expectations by 55 percent.
- This announcement resulted in Alphabet shares falling more than 6 percent at one point.
- Chipmaker AMD also faced challenges, with its stock dropping by 17 percent, contributing to a broader selloff in the tech sector.
Impact of Central Bank Decisions
Investors are awaiting significant announcements from central banks, including the Bank of England and the European Central Bank, which are expected to maintain current interest rates.
The euro hovered around $1.18, while the pound faced pressure, trading at $1.358. Gilt yields for both 10-year and 30-year bonds rose to their highest levels since late November.
Political Uncertainties and Their Effects
Political dynamics in Britain, particularly surrounding Prime Minister Keir Starmer’s recent appointments, have heightened uncertainties. Starmer’s choice of Peter Mandelson as the U.S. ambassador has drawn criticism due to Mandelson’s controversial connections, potentially jeopardizing investor confidence.
Commodity Market Trends
Precious metals saw sharp declines again, reversing gains from the previous days. Key price movements included:
- Silver fell by as much as 14 percent, settling at $79.2 per ounce.
- Gold decreased by 1.5 percent, trading at $4,888 per ounce.
- Platinum recorded a 5 percent loss.
Currency and Energy Markets
The U.S. dollar index rose by 0.2 percent, reaching a two-week high, while the Australian and New Zealand dollars dropped by 0.5 percent and 0.3 percent, respectively. The Japanese yen remained steady at 156.82 per dollar, despite four consecutive days of decline ahead of an upcoming election.
In energy markets, oil prices fell by 1.5 percent to $68.5 per barrel following announcements of upcoming talks between the U.S. and Iran. Furthermore, the bitcoin market continues to experience a downward trend as it approaches the $70,000 mark.
Analysts at Deutsche Bank noted that this decline is primarily attributed to substantial withdrawals from institutional ETFs, which have seen billions in outflows since October 2025.
As financial markets brace for potential shifts, investors remain vigilant, monitoring both economic and political developments that could influence market conditions.
