S&P 500, Dow Jones, Nasdaq to open lower at U.S. Stock Market today as AI fears grip Wall Street investors

U.S. futures fell in the pre-market on Friday. The future for the S&P 500 fell less than 0.1 per cent, while that for the Dow Jones Industrial Average was 0.1 per cent lower. Nasdaq futures remained at the lower trajectory.

Fears of AI disruptions across industries in recent days have hit investor confidence in companies, especially in software stocks. Some analysts say uncertainties surrounding the AI disruption risk are likely to go on for a while. Many remained concerned about whether massive AI investments by companies will eventually pay off.

But other analysts are more optimistic. Economists at Capital Economics, for example, argue that they still believe in the AI rally, and that this year will be a “good year” for the S&P 500, building on the technology-led gains.


On Thursday, Wall Street saw sharp losses as AI worries dampened sentiment. The S&P 500 fell for its second-worst day since Thanksgiving, dropping 1.6 per cent, or 108.71, to 6,832.76, but it's still near an all-time high that was set last month. The Dow Jones Industrial Average was down 1.3 per cent, or 669.42, to 49,451.98. The Nasdaq composite lost 2 per cent, or 469.32, to 22,597.15.

American technology giant Cisco Systems sank 12.3 per cent even though it reported better-than-expected quarterly results, as investors were concerned about its ongoing profitability.

Shares of technology company AppLovin plunged 19.7 per cent despite better-than-expected quarterly profits as worries over AI undercutting its business weighed on its stock price.