United States
Wall Street endured a bruising session overnight as a potent cocktail of artificial intelligence disruption fears and renewed tariff uncertainty sent investors scrambling for safety.
The S&P 500 tumbled 1.2% to around 5,900-handle territory, while the Dow Jones Industrial Average shed 1.7% and the tech-heavy Nasdaq 100 dropped 1.5%. The Russell 2000 small-cap index also fell 1.8%, underscoring the breadth of the selling.
Software stocks bore the brunt of the damage after Citrini Research published a note outlining the potential for AI to disrupt a swathe of industries. The iShares Expanded Tech-Software Sector ETF plunged 5.1%, putting it on track for its worst month since 2008. IBM was the session’s biggest casualty, cratering 13% after Anthropic revealed its Claude Code tool can help modernise COBOL, the legacy programming language that underpins much of IBM’s mainframe business. It was the stock’s worst day in more than 25 years.
Payments and delivery names were also caught in the crossfire, with DoorDash and American Express both sinking more than 6.5%. Visa lost 4.7%, JPMorgan fell 4.1% and Goldman Sachs dropped 3.6%.
Adding to the unease, the White House moved to replace President Donald Trump’s “reciprocal” tariffs, which were struck down by the Supreme Court last Friday, with a new across-the-board 15% levy on all US imports. The tariff pivot kept traders on edge, though some strategists played down the economic impact.
Haven assets were the clear beneficiaries. A rally in Treasuries pushed the benchmark 10-year yield down five basis points to 4.03%, while gold surged to fresh records above $US5,200. Fed Governor Christopher Waller indicated his March rate decision would hinge on upcoming jobs data, reinforcing expectations the central bank will remain in wait-and-see mode.
Looking ahead, Trump’s State of the Union address tonight and Nvidia’s earnings on Wednesday loom as the next major catalysts.
Europe
European equities retreated as Trump’s tariff manoeuvres added another layer of complexity to an already nervous market.
The Stoxx Europe 600 fell 0.5%, with financial services, media and travel stocks among the weakest performers. Trade-sensitive sectors including autos and industrials also lagged, while personal care and utilities provided some defensive shelter.
The European Parliament’s main political groups announced they would suspend legislative work on approving the US trade deal, a direct response to the latest tariff escalation. Investors are also monitoring the resumption of US-Iran diplomatic talks scheduled for Thursday.
Novo Nordisk was the session’s standout decliner, plunging 16% to its lowest level since 2021 after its next-generation obesity drug CagriSema delivered less weight loss than Eli Lilly’s rival tirzepatide in a head-to-head trial. The result raises serious questions about Novo’s competitive positioning in the booming weight-loss market.
Elsewhere, Johnson Matthey tumbled 16% after the chemicals firm agreed to sell its Catalyst Technologies division to Honeywell at a lower price than originally planned. Swiss heating and cooling equipment maker Belimo dropped 10% after analysts flagged concerns over its 2026 guidance and the delayed impact of tariff decisions on its business.
Australia
Australian shares are set for a mildly positive open despite the Wall Street weakness, with S&P/ASX 200 futures pointing up 23 points, or 0.3%, to 9,000 near 7am AEDT.
The local market slipped 0.6% on Monday to 9,026 as Trump’s tariff revival weighed on sentiment, though gold miners provided a bright spot. Ramelius Resources surged 8.2%, Greatland Resources added 6.4% and Newmont climbed 4.9% as bullion prices pushed higher. Heavyweight BHP touched a fresh high of $54.75 before settling 1.3% higher.
Technology stocks continued their recent slide, with WiseTech dropping 5.2%, NextDC falling 4.1% and TechnologyOne losing 5.2% as AI disruption fears reverberated through the sector. The big four banks also weighed, led by ANZ’s 2.3% decline.
It was a busy day for corporate results. Reece rallied 13.9% after its first-half earnings beat consensus by around 5%, driven by better-than-expected cost management. Nuix rocketed 15.1% on a strong swing to profit, while Guzman y Gomez bounced 8.6% as analysts upgraded the stock following last week’s results.
On the other side of the ledger, Perenti tumbled 13.8% after trimming full-year guidance, Austal dropped 11% despite higher revenue, and Lendlease fell 7.2% after swinging to a $200 million operating loss on significant writedowns.
Tuesday’s reporting calendar is packed, with Woodside Energy, NextDC, HMC Capital, Nine Entertainment, Scentre and Viva Energy among the names due to update the market.
Commodities and currencies
Gold was the undisputed star of the session, rallying 2.3% to $US5,224 an ounce as investors sought haven assets amid the tariff and AI uncertainty. Strategists noted that ongoing geopolitical volatility and central bank buying continue to underpin the precious metal.
Oil prices were marginally softer despite the broader risk-off mood. West Texas Intermediate crude eased 0.1% to $US66.40 a barrel, while Brent slipped 0.4% to $US71.48. Iron ore edged 0.5% higher to $US95.85 a tonne.
The Australian dollar weakened 0.4% to 70.56 US cents as the greenback firmed, while the euro held steady at $US1.1792 and the Japanese yen gained 0.2% to 154.68 per dollar.
Bitcoin copped a hiding, tumbling 5.4% to $US63,952 as risk appetite evaporated, with ethereum falling 5.2%.
Economic Calendar
US:
- ADP Employment 00:15
This article was written by Calvin Curdie, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
