Global Markets Stumble Amid AI Concerns and Geopolitical Tensions

Global stock markets took a downturn on Wednesday, with growing anxiety over the impacts of artificial intelligence on the tech industry. This was coupled with significant movements in gold prices, as the commodity approached a historic two-day gain.

The introduction of AI plugins by Anthropic for its Claude Cowork agent sparked fears of disruptions in data analytics and software services, resulting in a sharp decline in stocks such as LSEG and RELX in Europe. IG's Chris Beauchamp highlighted the market's demand for these companies to adapt by forming alliances with AI developers.

Amid these financial uncertainties, geopolitical tensions further stirred the markets. The confrontation between the U.S. and Iran briefly pushed oil prices up, while future U.S. Federal Reserve leadership choices added to market instability. Investors await developments to assess the broader economic trajectory.