Markets plunge on AI, regulation, and geopolitical risks

Dow Jones futures and tech stocks fell on AI and regulatory worries. Bitcoin dropped 1.7% amid geopolitical tensions and ETF outflows. Nasdaq 100 futures saw a $7B net-long reduction as risk aversion grows.

Dow Jones Industrial Average futures dropped 1.8% in pre-market trading, reflecting growing investor concerns about the economic impact of artificial intelligence, regulatory scrutiny, and valuation risks. Major tech stocks, such as Microsoft and Salesforce, saw futures fall over 2%, while traditional industrial stocks remained relatively steady. Bitcoin declined 1.7% to $67,600 amid heightened geopolitical tensions, especially involving Iran, and continued debate over AI’s broader economic effects. The uncertain macroeconomic environment, including Federal Reserve rate policy, has triggered sustained outflows from US-listed Bitcoin ETFs, with $360 million withdrawn last week. Asset managers cut net-long positions in Nasdaq 100 futures by over $7 billion since mid-January, the largest reduction since spring 2025. Short positions rose by $3 billion, and the Nasdaq Composite marked its fifth straight weekly decline, the longest since 2022. These trends underscore widespread risk aversion and sector-specific pressures driven by AI disruption fears and geopolitical instability.