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AI Concerns Shake Global Markets

  //stocks-investing.news-articles.net/content/2026/02/20/ai-concerns-shake-global-markets.html
  Published in Stocks and Investing on Friday, February 20th 2026 at 3:05 GMT by WTOP News
      Locales: JAPAN, HONG KONG, CHINA, UNITED STATES

AI Concerns Weigh on Markets: Asian Shares Mixed, US Futures Navigate Uncertain Terrain

TOKYO (WTop) - Global markets presented a mixed picture Friday, February 20th, 2026, as Asian shares fluctuated and US stock futures attempted a rebound following a downturn on Wall Street fueled by growing anxieties surrounding the rapid advancement and economic impact of artificial intelligence. The ongoing reassessment of corporate earnings potential, coupled with fears of widespread job displacement, continue to cast a long shadow over investor sentiment.

Asian markets exhibited a divided response. Japan's Nikkei 225 index demonstrated resilience, climbing 0.5% to close at 28,313.66, potentially benefiting from a weaker Yen which boosts export competitiveness. South Korea's Kospi mirrored this positive trend, gaining 0.2% to reach 2,697.38. However, mainland China's markets lagged, with Hong Kong's Hang Seng index falling 0.8% to 24,218.63 and the Shanghai Composite index edging down 0.1% to 3,058.04. This divergence may reflect differing levels of exposure to sectors most vulnerable to AI-driven disruption, or differing policy responses to the technological shift.

US stock futures showed tentative gains in overnight trading, suggesting some investors believe the Thursday sell-off was an overreaction. However, the underlying concerns about AI's economic impact remain potent. On Thursday, the S&P 500 closed down 0.8% at 4,459.83, driven lower by a report detailing increased adoption of generative AI technologies across a broad range of US companies. The Dow Jones Industrial Average also slipped, falling 0.6% to 34,161.76, while the tech-heavy Nasdaq bore the brunt of the selling pressure, dropping 1.5% to 13,513.34.

The core of the market apprehension revolves around two key issues. Firstly, the accelerating deployment of AI is forcing analysts to revise earnings expectations for numerous companies. While AI promises increased efficiency and innovation, the upfront costs of implementation are substantial, and the long-term return on investment is still uncertain. Investors are now factoring in a potentially slower growth trajectory for companies reliant on traditional labor models. Secondly, and perhaps more significantly, is the growing fear of mass job displacement. Generative AI, in particular, is demonstrating an increasing capacity to automate tasks previously performed by white-collar workers, raising concerns about structural unemployment and its broader economic consequences.

Energy markets also reflected the overall uncertainty, with oil prices experiencing volatility. Benchmark US crude oil prices fell 1.2% to $73.48 a barrel, and Brent crude declined 1.3% to $78.98 a barrel. This downturn may be linked to concerns about a potential economic slowdown triggered by AI-related disruptions, leading to reduced demand for oil.

Looking ahead, several key events will likely shape market direction. Investors are keenly awaiting the Bank of Japan's upcoming decision on interest rates. A potential shift in monetary policy could significantly impact global currency markets and investor risk appetite. Furthermore, the release of forthcoming economic data, including inflation figures and employment reports, will provide crucial insights into the overall health of the global economy and potentially validate or alleviate concerns about an AI-induced recession.

Analysts are also closely watching how governments around the world respond to the challenges posed by AI. Calls for regulatory frameworks to address job displacement, ensure ethical AI development, and mitigate potential risks are growing louder. The effectiveness of these policies will be critical in shaping the long-term impact of AI on the economy and financial markets. It's no longer simply a technological race, but a socio-economic one. The ability of nations to adapt, retrain their workforce, and establish appropriate safety nets will determine who benefits from the AI revolution, and who is left behind.