New York Stock Market Plummets Due to AI Fears, CPI to Determine Next Direction

US stocks closed sharply lower early on the 13th (Korean time) as investors sold off, distinguishing between AI beneficiaries and laggards. The S&P 500 fell 1.6% to 6,832.76, the Dow dropped 1.3% to 49,451.98, and the Nasdaq plunged 2% to 22,597.15. Although this marked a pause from recent highs, major indices remain near all-time peaks.

Markets were driven more by anticipation of tomorrow’s reports than by the data themselves. Weekly jobless claims and housing figures missed expectations, pushing Treasury yields down, and investors trimmed risk assets ahead of the Consumer Price Index (CPI) release due on the 14th (U.S. time). Fed rate-futures markets have steadily pushed out the timing of the first rate cut, with the consensus now expecting a modest easing to begin only in the second half of the year.

Corporate earnings and AI developments widened the rout. Cisco warned that higher memory-chip costs would hurt future profitability, sending its shares down over 10%, while AppLovin tumbled nearly 20% on fears of intensified AI-driven competition. In contrast, data-center REIT Equinix surged more than 10% as hopes for AI infrastructure demand crystallized, underscoring the day’s clear “AI winners” and “losers.”

Global factors also fueled anxiety. Escalating U.S.–Iran tensions drove Brent crude toward $69 a barrel, raising renewed inflation concerns, and gold, despite a slight pullback, held lofty levels in the $5,000-per-ounce range. This correction serves as a short-term risk reappraisal of tech and software stocks and as a prelude to tomorrow’s CPI release and the Fed’s future policy stance. Domestic investors should review their positions by assessing both AI exposure and interest-rate sensitivity.