Global Market Turbulence: AI Boom Costs & Economic Concerns

Global equities took a hit as the MSCI's worldwide gauge dropped 1%, reflecting concerns over the growing expenses tied to the artificial intelligence boom. Alongside this, U.S. Treasuries saw increased demand following weak labor market figures, and silver experienced a significant downturn.

The labor market showed signs of strain, with new unemployment benefits applications rising. The U.S. job openings hit a five-year low, while January layoffs reached a 17-year high, marking a challenging economic atmosphere. Notably, Alphabet's substantial AI investment plan led to a dip in their share prices, adding pressure to technology stocks.

In the commodities sector, oil prices faced a nearly 3% drop ahead of the U.S. and Iran discussions in Oman, easing fears about Iranian crude supply disruptions. Meanwhile, precious metals like silver and gold continued their downward trend, and bitcoin's prolonged selloff persisted, reflecting a broader market volatility.