AI Jitters Shake Wall Street as Stocks See Slight Gains Amid Global Uncertainty

Wall Street stocks presented modest gains on Tuesday as investors grappled with the implications of the artificial intelligence boom. Concerns over supply and the ongoing nuclear discussions between the U.S. and Iran contributed to fluctuations in major U.S. stock indexes.

The rise of AI has sparked investor anxiety, with debates over its potential impact on employment shaping market dynamics. Federal Reserve Governor Michael Barr acknowledged potential short-term labor market disruptions due to AI, despite possible long-term benefits. This theme, alongside monetary policy considerations, has shaped recent financial trends.

Geopolitical developments, particularly U.S.-Iran relations, also played a significant role, while European stocks were buoyed by strong performances in the financial and healthcare sectors. The dollar retained strength in light of global uncertainties, influencing commodity prices, including oil and gold.