Published: 24 February 2026,05:52
Daily Market Analysis New
*U.S. equities sold off aggressively as tariff uncertainty resurfaced and offset the earlier boost from improved global risk sentiment.
*The U.S.Supreme Court struck down emergency tariffs, prompting President Trump to announce a 15% global tariff under Section 122, reviving fears of renewed trade frictions with major partners.
*Fresh AI disruption fears triggers selling spree in the market.
Market Summary:
Wall Street experienced a severe sell-off to start the week, driven by a confluence of renewed trade policy uncertainty and escalating concerns over the sustainability of the artificial intelligence investment thesis. The Dow Jones Industrial Average led the decline, falling more than 800 points or 1.66 percent, while the S&P 500 and Nasdaq Composite each closed more than 1 percent lower. The sell-off marks a sharp reversal from the improved risk sentiment that followed Japan’s recent election, which had temporarily eased concerns over global liquidity.
The market turmoil was triggered Friday after the Supreme Court invalidated the administration’s broader emergency tariffs imposed under the International Emergency Economic Powers Act. President Trump swiftly pivoted to alternative authority, announcing a 15 percent global tariff under Section 122 of the Trade Act of 1974, reintroducing significant uncertainty into global trade dynamics. The move raises the prospect of renewed trade tensions between the U.S. and its major trading partners, with European officials already expressing reservations.
Compounding the trade-related pressure, AI jitters resurfaced with renewed intensity following Anthropic’s announcement of a new tool designed to automate complex consulting tasks. The news triggered a sharp sell-off in professional services and software stocks, with shares of IBM plunging 13.15 percent in their worst single-day decline in over 25 years. More broadly, the market is grappling with growing skepticism over whether the massive capital spending on AI infrastructure can generate sufficient returns to justify current valuations, with investors increasingly questioning the sustainability of the technology’s investment thesis.
While U.S. stock futures are creeping higher in Tuesday’s Asian session, underlying sentiment remains fragile. The combination of tariff uncertainty and AI-related valuation concerns suggests downside risks persist, and traders are advised to exercise caution in the sessions ahead.
Technical Analysis
The Dow Jones Industrial Average has broken decisively below its long-term uptrend support line, signaling a bearish trend reversal for the index. The breakdown follows last week’s sharp sell-off driven by renewed tariff uncertainty and AI sector concerns, with the Dow shedding more than 800 points or 1.66 percent in Monday’s session.
The index is now testing immediate support at the 48,900 level. A sustained close below this threshold would provide strong bearish confirmation, likely accelerating selling pressure toward the next downside target near 48,400. The 48,900 area represents a critical technical juncture where previous price congestion and psychological support converge.
Momentum indicators firmly support the bearish outlook. The Relative Strength Index has traded consistently below its midpoint, reflecting sustained selling pressure and an absence of bullish conviction. The Moving Average Convergence Divergence indicator continues to trend below its zero line following a bearish crossover, confirming that negative momentum remains structurally dominant.
Resistance Levels: 49,600.00, 50,315.00
Support Levels: 48,065.00, 47,070.00
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