U.S. equities retreated by just over 1% yesterday, as renewed concerns over evolving trade policies and the long-term impact of artificial intelligence continued to weigh on investor sentiment. Software companies bore the brunt of the selling, exacerbated by a critical report from Citrini Research. Technology bellwether IBM Corp. saw its shares plunge 13%, marking its steepest decline in 25 years.
Despite the broader tech headwinds, China’s Huawei Technologies Co. reported robust revenue growth, reaching $127 billion in 2025. The figures highlight the company’s sustained resilience and ability to thrive despite ongoing U.S. sanctions. Elsewhere in corporate news, Telefónica SA saw its earnings bolstered by strong performance in key markets such as Brazil and Spain.
In Europe, the automotive sector faced a setback. Car sales across the continent fell by 3.5% in January, breaking a six-month streak of growth. While increased sales of electric vehicles helped to cushion the overall decline, the figures point to softening demand in the broader market.
Geopolitical tensions continued to simmer. The Pentagon has reportedly warned President Trump against a potential attack on Iran, according to the Wall Street Journal, citing the significant risks of major casualties for U.S. forces and its allies in the region.
As trading unfolds, European markets are slightly down. However, mainland China stocks have rallied, gaining 1% following the extended Lunar New Year holiday. U.S. equity futures are pointing to an average gain of 0.3% at the open, suggesting an attempt to recover some of yesterday’s losses. In commodities, gold is trading 0.5% lower at $5,200 an ounce, after recent gains.