Global Jitters as Markets Reel from Volatility and Selloffs

Global markets continued their downturn as volatility impacted stocks, precious metals, and cryptocurrencies. Wall Street experienced intensified selloffs, influenced by concerns over AI models affecting software firm profits. Precious metals and cryptocurrencies saw partial recoveries. Investors are increasingly speculating on potential Federal Reserve rate cuts.

Global markets extended their losing streak for a third consecutive day, as heightened volatility hit stocks, precious metals, and cryptocurrencies. The MSCI All-Country World Index was down 0.1%, poised to end the week with its steepest decline since mid-November, amidst an intensified selloff on Wall Street.

The market turbulence was exacerbated by fears that new AI models could erode software company profits, with the S&P 500 dipping into negative territory for the year. Cryptocurrencies staged a partial recovery following a $2 trillion wipeout, with bitcoin rising 2.4% and ether climbing 3%.

The anticipation of a possible Federal Reserve rate cut gained momentum among investors, with Fed funds futures indicating an increased likelihood of an adjustment at the central bank's upcoming meeting. Meanwhile, precious metals and energy markets sought stability, while Asian stocks displayed volatility.

(With inputs from agencies.)