AI Fears Trigger Broad Market Selloff as Tech Rotates

Stocks fell broadly as AI disruption fears spooked investors, with the S&P 500 down about 0.8%, the Dow off 0.3%, and the Nasdaq 100 down around 1.5%. An initial tech rally faded as investors rotated into cyclicals after Anthropic’s AI tool signaled intensified competition. Data-service, software and chip names led declines, while gold and silver miners rose and crypto-exposed stocks declined as Bitcoin dipped. Markets await more earnings data and a spending bill to end the partial government shutdown; S&P 500 earnings are seen up roughly 8.4% year over year, ex-Magnificent Seven about 4.6%, and March rate-cut odds near 9%.