BY EMMANUEL OGBONNA
Global equities traded unevenly on Friday as investors grappled with renewed volatility in technology stocks, triggered by concerns that rapid advances in artificial intelligence could disrupt established business models and undermine future earnings.
Futures for major U.S. indexes pointed modestly lower in early trading. Contracts tied to the S&P 500 slipped less than 0.1%, while futures for the Dow Jones Industrial Average edged down 0.1%, suggesting cautious sentiment ahead of the opening bell.
In Europe, markets showed mixed performance in early dealings. Germany’s DAX was little changed, inching up less than 0.1% to 24,860.94. Britain’s FTSE 100 rose 0.2% to 10,424.39, supported by gains in consumer and energy shares. France’s CAC 40 slipped 0.2% to 8,323.44, reflecting broader caution across the region.
Asian markets were predominantly lower, extending losses after Wall Street’s sharp decline. Japan’s Nikkei 225 dropped 1.2% to 56,941.97. Shares of SoftBank Group, a prominent investor in artificial intelligence ventures, tumbled 8.9%. The decline came despite the company reporting a quarterly profit of $1.6 billion, bolstered by gains tied to investments including its stake in OpenAI. Market participants appeared to focus less on recent earnings and more on longer-term uncertainties surrounding AI-driven competitive shifts.
South Korea’s Kospi fell 0.3% to 5,507.01 after earlier gains faded. Technology heavyweight Samsung Electronics bucked the trend, rising 1.5% as investors weighed its positioning within the semiconductor and AI supply chain.
In Hong Kong, the Hang Seng Index declined 1.7% to 26,567.12, while mainland China’s Shanghai Composite Index lost 1.3% to 4,082.07. Australian equities were also under pressure, with the S&P/ASX 200 down 1.4%. India’s BSE Sensex retreated 1.1% amid broader regional weakness.
The cautious tone followed a steep sell-off on Wall Street a day earlier, when technology stocks led a broad retreat. The S&P 500 fell 1.6%, or 108.71 points, to 6,832.76 — marking its second-worst session since late November — though it remains near record highs reached last month. The Dow Jones Industrial Average dropped 1.3%, shedding 669.42 points to 49,451.98. The tech-heavy Nasdaq Composite slid 2%, losing 469.32 points to 22,597.15.
Among individual movers, networking giant Cisco Systems plunged 12.3%, despite reporting quarterly results that exceeded analysts’ expectations. Investors expressed concern over the sustainability of its profit margins in an increasingly AI-driven technology landscape. Shares of AppLovin sank 19.7% even after posting stronger-than-anticipated earnings, as investors questioned how artificial intelligence could reshape digital advertising and software monetization.
The recent volatility underscores a broader debate within financial markets about the durability of the AI-driven rally that has propelled equities to record levels over the past year. Some analysts argue that the transformative potential of AI introduces structural risks that could upend incumbent firms, particularly in software and digital services. Others maintain that the technology sector’s scale, capital strength, and adaptability position it to continue leading gains.
Economists at Capital Economics said they remain constructive on equities, contending that a sustained downturn would likely require a more pronounced correction within the technology sector itself. They continue to forecast solid performance for the S&P 500 this year, building on momentum generated by innovation-led growth.
Outside of technology, select consumer stocks offered support. Shares of McDonald’s rose 2.7% after the company reported quarterly profits that surpassed expectations, signaling resilient consumer demand. Walmart advanced 3.8%, reflecting strength in discount retailing amid shifting spending patterns.
Investors are also closely monitoring upcoming U.S. inflation data due later Friday, which could influence expectations for monetary policy. Economists broadly anticipate that the Federal Reserve will maintain a cautious stance, with the likelihood of additional interest rate cuts in the near term viewed as limited unless inflation shows clearer signs of moderating.
In commodity markets, U.S. benchmark crude oil slipped 0.1% to $62.75 per barrel. Brent crude, the international standard, eased less than 0.1% to $67.46 per barrel. Precious metals moved higher, with gold rising 0.4% to $4,970.30 per ounce after recently pulling back from the $5,000 threshold. Silver gained 1% to $76.45 per ounce.
In currency trading, the U.S. dollar strengthened to 153.38 Japanese yen from 152.72 yen. The euro edged lower to $1.1857 from $1.1871, reflecting modest dollar resilience amid global market uncertainty.
As investors weigh the promise and peril of artificial intelligence, markets appear poised for continued volatility, with sentiment shifting rapidly in response to earnings signals, economic data, and evolving expectations about the pace of technological disruption.
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