Key points:

• Stock futures dive
• Busy week ahead
• Gold plunges by $100

AI is acting like a double-edged sword. It’s able to boost productivity gains, but it could also destroy whole business industries. What are stocks to do?

🤖 AI Angst Hits Futures

• S&P 500 futures swung sharply lower Tuesday morning, losing around 0.5% to 0.6%, as traders reassessed the “AI fixes everything” narrative. Nasdaq contracts slid nearly 1%, while Dow futures eased 0.3%. Enthusiasm is cooling as some side effects come into focus.
• Markets were already thin with US exchanges closed for Presidents Day Monday, amplifying the mood shift. In quieter conditions, even moderate selling can look dramatic, especially when sentiment is fragile.
• Both the S&P 500 and Nasdaq now sit in negative territory for the year. The AI trade that once powered record highs is morphing into a debate about who wins and who gets automated out of relevance.

⚔️ Productivity vs. Disruption

• Artificial intelligence promises higher productivity, faster workflows and fatter margins. That is the bullish case. The bearish one is simpler: entire software, legal, financial and logistics segments could see pricing power erode.
• Investors have sold off software, wealth management and even trucking stocks in recent sessions. The worry is not whether AI works. It is whether it works so well that it compresses fees and commoditizes services.
• Capital expenditure, or capex, remains a pressure point. Hyper-scalers are spending hundreds of billions on data centers and chips. If returns lag those investments, earnings multiples may need recalibration.

📊 Data to Steal the Spotlight

• The week ahead brings a first look at fourth-quarter US growth, with GDP expected near a 2.8% annualized pace. Strong but cooling growth could reshape the risk narrative beyond AI headlines.
• Housing, manufacturing and services reports are also on deck, alongside the Fed’s preferred inflation gauge and meeting minutes. Looks like macro is ready to reclaim center stage.
• Earnings season is in its final lap, with roughly 80% of S&P 500 companies beating or matching expectations so far. Walmart, Moody’s and DoorDash are among those still to report.
• Bitcoin hovered near $68,000, gold slipped toward $4,900, and silver dipped to the low $70s as traders trimmed risk across the board.

Source: Tradingview