U.S. stocks sink as AI concerns, trade tensions weigh on market

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U.S. stocks sink as AI concerns, trade tensions weigh on market

2026-02-24 11:18 Last Updated At：13:37

U.S. stocks suffered heavy losses on Monday as renewed concerns over artificial intelligence (AI) disruptions and escalating global trade tensions dampened investor sentiment.

The Dow Jones Industrial Average fell 821.91 points, or 1.66 percent, to 48,804.06. The S and P 500 sank 71.76 points, or 1.04 percent, to 6,837.75. The Nasdaq Composite Index shed 258.8 points, or 1.13 percent, to 22,627.27.

Performance across the 11 primary S and P 500 sectors was mixed. Consumer staples and health led the gainers, adding 1.46 percent and 1.15 percent, respectively. Conversely, financials and consumer discretionary led the laggards, dropping 3.33 percent and 2.15 percent, respectively.

The "AI scare" intensified following Anthropic's announcement of a new tool designed to automate complex consulting tasks. The news triggered a sharp sell-off in professional services firms, with shares of IBM plunging 13.15 percent, while Accenture and Cognizant also recorded losses.

On the trade front, the optimism sparked by the U.S. Supreme Court ruling on Friday against previous tariffs was short-lived. Following U.S. President Donald Trump's announcement of a new round of "global tariffs," the European Union issued a firm rejection, emphasizing that "a deal is a deal" and calling for clarity from Washington.

ING Bank experts suggested the new measures may face further legal challenges and could be viewed as a tactical move to buy time for alternative trade policies. "Friday's Supreme Court ruling sent a strong signal about the limits of presidential power. It can be seen as evidence that checks and balances in the U.S. still work. However, we don't think that President Trump will use the ruling as a backdoor option to back down on his tariff agenda."

In individual stock moves, U.S.-listed shares of Novo Nordisk tumbled 16.43 percent to a nearly five-year low after its obesity treatment trial data lagged behind that of competitor Eli Lilly. Shares of Eli Lilly rose 4.86 percent on the news.

Netflix shares declined 3.37 percent amid political pressure concerning its board composition and the company's ongoing efforts to acquire specific assets from Warner Bros. Discovery.

Major US port city hosts grand Chinese New Year celebration

Long Beach, a major port city in the United States, last weekend hosted the largest Chinese New Year celebration in Southern California, an event that organizers said reflects the city's decades-long commitment to bridging cultures and fostering trade partnerships across the Pacific.

The celebration staged music and dance performances featuring diverse Asian traditions and drew nearly 15,000 attendees.

"We have a lot of people coming in. They have a very diverse background. Again, our sister city of Long Beach, our goal is to promote peace, is to bring people together, and that's what it is all about. Today, we have a very diverse performance," said Richer San, board chairman of the Sister Cities of Long Beach.

With a population of nearly half a million, Long Beach is the second-busiest port city in the U.S. and home to numerous companies and business organizations with close ties to Asian trade partners, especially China.

"We're awfully pleased to have such good relationships with our port cities. Many of our sister cities are also port cities, particularly our China's Qingdao Port, and we just celebrated our 40th anniversary with our Chinese sister city, Qingdao, we happened to go there with the mayor during the Qingdao beer festival. Were we happy or what?" said Susan Redfield, president of the Sister Cities of Long Beach.

A sister city relationship was established in 1985 between Long Beach and Qingdao, a major coastal city in eastern China. These decades-long ties are helping both port cities navigate the challenges of a complex global landscape, work furthered by the Long Beach-Qingdao Association, which was founded the same year.

"I'm awfully grateful that we have such good relationships with our port, with our other port cities, particularly with regard to commercial trade, and at this particular time in our country, it's been a challenge, and we're awfully grateful that it looks like things are looking up. We have a lot of resiliency with our businesses here, and we're growing and expanding them, particularly with Cambodia and other cities, and always with China, of course," Redfield said.