AI disruption worries and softer manufacturing data temper global market gains

Global markets today are being driven mainly by ongoing worries that artificial intelligence (AI) could disrupt traditional business models, prompting investors to shift money out of technology and into more defensive sectors. Even though many companies have reported strong fourth‑quarter 2025 earnings, investors are increasingly concerned that AI tools could replace or undercut existing software and services across industries such as financial services, media, trucking, real estate, and software development. This fear is pressuring growth and tech-related areas of the market and encouraging a rotation into sectors seen as more stable and less exposed to rapid technological change, such as utilities, real estate, and health care, which have recently outperformed. At the same time, broader sentiment is stabilizing somewhat as markets look ahead to the upcoming release of the U.S. Federal Reserve’s January meeting minutes, which could offer clues on the path of interest rates and economic growth. Adding a modest positive global backdrop, Japan’s announcement of a $36 billion investment commitment in U.S. oil, gas, and critical mineral projects is supporting confidence in longer‑term energy security and industrial demand. Overall, the mix of AI-related disruption fears, defensive sector rotation, and anticipation of central bank signals is likely to keep trading cautious but focused on safer parts of the global stock market today.