Global shares dip, investors twitchy about AI disruption

SINGAPORE/LONDON, Feb 24 (Reuters): Global shares tumbled for a second day on Tuesday, as sentiment suffered on a range of factors, from uncertainty over US President Donald Trump's tariff policy and geopolitical tensions to renewed worries about the upheaval to the economy from AI.
After the Supreme Court ruled Trump's emergency tariffs were unlawful on Friday, the president announced a 10 per cent across-the-board levy, which came into effect on Tuesday. Trump later said the tariff would be 15 per cent, but it was unclear when, or if, this would apply.
Importers could be in line for billions of dollars in refunds, while trade partners and investors alike are in the dark about where many existing tariff agreements stand.
MSCI's All-World index eased for a second day. In Europe, the STOXX 600 steadied, but remained in sight of record highs.
Markets in Asia got a boost from China and Japan, where traders returned from holiday. US stock futures, were up 0.2-0.3 per cent.
On Monday, the S&P 500 slid 1.0 per cent, erasing the past week of gains, as fears over the displacement effects of AI on software and other industries pushed the Nasdaq Composite 1.1 per cent lower. A bearish analysis from Citrini Research, opens new tab on the possible risks to the global economy took a further toll on jittery investor sentiment.
The report was "getting a lot of airplay", said Tony Sycamore, market analyst at IG in Sydney. "It does align with quite a few fears which are out there."
The article, which circulated at the weekend, is one of a number of recent "think pieces" on the long-term consequences of artificial intelligence - on employment, global growth and almost human existence itself - that have rattled investors.
In a note discussing a similar piece, Deutsche Bank strategist Jim Reid wrote: "The argument leans heavily on narrative and emotion rather than hard evidence. That doesn't mean it will ultimately be wrong, but ... the vibes-to-substance ratio is undeniably high."
The sheer scale of corporate borrowing and spending on AI has been enough to make many nervous, not least because of the outsized market weight of companies at the heart of the boom. Yet, for all the recent volatility, the S&P itself is only around 2.5 per cent below record highs.
"None of this, so far, has delivered the knock-out blow to equity markets, where the S&P 500 has gyrated in a narrow 6,775-7,000 range since the start of the year," said ING strategist Chris Turner. "Tomorrow evening's Nvidia release might be the next big story, however."