New York stock markets opened lower on February 17, local time, with the three major indices posting sharp declines amid concerns over an AI boom slowdown and escalating tensions in the Iran Strait.
Key Index Declines
At 10:29 a.m. on the New York Stock Exchange, the Dow Jones Industrial Average dropped 259.63 points, or 0.52%, to 49,241.30. The S&P 500 index fell 48.79 points, or 0.71%, to 6,787.38, while the Nasdaq Composite declined 237.69 points, or 1.05%, to 22,308.98.
AI Sector Weighs on Sentiment
Investors remain cautious following last week’s worries about artificial intelligence’s diminishing impact on business models. Alibaba recently unveiled Qwen 3.5, a new AI model designed to handle complex tasks independently. Analysts note that rapid advancements by Chinese AI firms raise potential competitive threats.
State Street Global Advisors Chief Investment Officer (CIO) stated, “Alibaba’s AI products represent one change burdening today’s market, but they form part of larger structural dynamics.” The CIO added, “After last year’s strong rally, the market is in a natural rebalancing phase, catching its breath—this is expected.”
Geopolitical Pressures from Iran
Iran announced a temporary closure of the Hormuz Strait, a critical oil shipping route, for military training exercises. The move coincided with nuclear program talks in Geneva between the U.S. and Iran, mediated by Oman.
U.S. intelligence reports highlight Iran’s hacking efforts targeting U.S. and Israeli interests. The U.S. has deployed aircraft carriers near Iranian waters, while Iran’s Revolutionary Guard conducted missile launches in the strait during negotiations. Tensions eased slightly after a partial agreement on the nuclear issue.
Sector Shifts and Standout Movers
Telecom, materials, and energy sectors weakened, while gold and utilities gained ground. Danaher neared a deal to acquire medical device maker Masimo, sending its shares up over 34%.
Norwegian Cruise Line Holdings rose more than 8% after activist fund Elliott Management disclosed a stake exceeding 10%. Paramount Global and Skydance shares climbed around 6%, boosted by Netflix granting Warner Bros. Discovery a seven-day window to revive Paramount acquisition talks.
