NEW YORK, Feb. 23 (Xinhua) -- 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&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&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. ■
