ASX set to edge up, Wall Street drops on Trump tariffs, AI jitters
Sydney Morning Herald
by Stan ChoeFebruary 23, 2026
AI-Generated Deep Dive Summary
The ASX is expected to rise slightly while Wall Street faces declines as markets grapple with President Donald Trump’s escalated tariffs and growing concerns over artificial intelligence (AI) impacts on certain industries. US stocks dropped sharply on Monday, with the Dow Jones falling 691 points and the Nasdaq declining by 1.1%. This comes after Trump announced a hike in tariffs to 15% from the previously stated 10%, following a Supreme Court ruling that invalidated his broader "reciprocal" trade policies. The Australian sharemarket, however, showed resilience with futures pointing to a modest gain of 0.1% at the open.
The global economy remains under significant uncertainty due to Trump’s aggressive tariff measures, which could potentially extend for up to 150 days unless Congress intervenes. This has caused widespread unease among trading partners, including South Korea, whose trade minister expressed concern over ongoing US tariffs. Meanwhile, markets are also grappling with the fallout from AI advancements, particularly in sectors like cybersecurity and software development, where companies are being penalized by investors worried about long-term competitiveness.
In the US, major tech firms under scrutiny for their vulnerability to AI competition saw sharp declines. CrowdStrike fell 8.4%, extending its year-to-date losses to 24%, while AppLovin dropped 8.2%. The broader market was also impacted by poor weather conditions in the Northeast, which disrupted air travel and weighed on airline stocks. United Airlines, American Airlines, and Delta Air Lines all saw significant declines.
The situation highlights the growing challenges for global trade and investor sentiment, with little clarity expected soon. While Friday’s Supreme Court ruling briefly boosted markets, it merely shifted the focus to new trade battlegrounds. Additionally, concerns about major tech companies like Alphabet and Amazon overinvesting in AI chips, particularly those produced by Nvidia, have added to market volatility. As Wall Street braces for more turbulence, key earnings reports, such as Nvidia’s on Wednesday, will likely amplify these dynamics.
Overall, the interplay of trade tensions, technological disruption, and geopolitical uncertainty continues to shape global markets, making it a critical time for investors to stay informed about these developments.
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Originally published on Sydney Morning Herald on 2/23/2026