Wall Street Pauses After AI Shock, Anxiety Builds Ahead of Resumption

On the 16th (local time), the New York Stock Exchange and Nasdaq were closed for Presidents’ Day. On the previous trading day, the 13th, the S&P 500 inched up 0.05% to around the 6,836 level, and the Dow Jones Industrial Average surpassed 50,000 to hit a record high, while the Nasdaq continued to weaken on a weekly basis. Growing doubts about the profitability of AI investments battered growth stocks—especially software and asset managers—while traditional blue-chip industrial and financial names provided support to the indices.

Although recently released inflation and employment data came in stronger than expected, investors are intently watching long-term yields and Federal Reserve officials’ remarks, amid widespread concern that this week’s upcoming GDP and additional inflation reports could once again influence the timing of a Fed rate cut. Earnings from major consumer and retail players such as Walmart, along with guidance from companies investing in AI infrastructure, are likewise viewed as key indicators for gauging economic slowdown risks, consumer spending capacity, and the health of the AI investment bubble debate. With U.S. markets on holiday, global markets have seen heightened volatility in gold and crude oil prices, stoking geopolitical risks and the prospect of renewed inflation pressures—factors likely to fuel increased volatility when New York trading resumes on the 17th (local time).