Markets Tumble: Dow Drops 800 Points, Tariff War Escalates & AI Disruption Deepens

Daily Market Update  |  24 February 2026

1. Asia Markets Trade Mixed After Trump Revives Tariff Threat and AI Fears Hit Tech

Asia-Pacific markets traded mixed Tuesday as investors weighed renewed tariff threats from U.S. President Donald Trump and concerns that artificial intelligence could disrupt software companies. Trump posted on Truth Social Monday that any country that wants to "play games" with the Supreme Court decision "will be met with a much higher tariff." The comments followed a Supreme Court decision Friday striking down tariffs enacted under the International Emergency Economic Powers Act. In response, Trump said he would impose a 15% global tariff under Section 122 of the 1974 Trade Act.

2. Dow Drops 800 Points as AI Disruption Fears and Tariff Woes Weigh on Markets

U.S. equities tumbled on Monday as investors grappled with persistent fears around artificial intelligence disruptions to various industries and President Donald Trump's decision to raise his global tariffs. The Dow Jones Industrial Average dropped 821.91 points, or 1.66%, to close at 48,804.06, while the Nasdaq Composite declined 1.13% and ended at 22,627.27. The S&P 500 shed 1.04% and closed at 6,837.75, putting it into the red once again for 2026. The 30-stock Dow was dragged down by IBM shares, which declined 13% on the heels of Anthropic outlining new programming capabilities for its Claude Code product.

3. Gold Fell 1% to Around $5,170 per Ounce on Tuesday After Four Days of Gains

Gold fell 1% to around $5,170 per ounce on Tuesday after four days of gains, as traders weighed renewed tariff risks and persistent geopolitical uncertainty. President Trump's new 10% global tariff took effect today, as the White House moves to revive his tariff agenda after the Supreme Court last week blocked many levies imposed last year. Reports suggest the administration is preparing a formal order that could raise the rate to 15%. On Monday, Trump warned of steeper duties on countries that "play games" with their existing trade deals. His warning comes as many trade partners reassess their trade positions following the court's ruling. The EU halted the ratification process of its trade agreement, while India deferred talks with the US. On the geopolitical front, attention remains on US-Iran nuclear talks, set to resume on Thursday.

4. WTI Crude Oil Futures Rose to Around $66.8 per Barrel on Tuesday

WTI crude oil futures rose to around $66.8 per barrel on Tuesday, its highest level in nearly seven months, as investors closely monitor a new round of talks between the US and Iran. President Trump said on Monday that he would prefer reaching an agreement with Iran, with talks set to resume on Thursday, but warned of a "very bad day" for Tehran if a nuclear deal fails to materialize. Trump also dismissed reports suggesting that the Pentagon is concerned about the risks of a prolonged military campaign against Iran. Fears over a potential military conflict in the Middle East, along with several supply disruptions, have supported crude prices in recent weeks, offsetting expectations of a sizable surplus this year. Meanwhile, traders are also assessing renewed trade risks, as Trump moves to introduce new tariffs after the Supreme Court struck down many of his sweeping levies.

5. Panama Cancels China-Linked Port Deal, Hands Canal Terminals to Maersk, MSC

Panama annulled key port contracts held by a subsidiary of Hong Kong-based CK Hutchison in its official gazette Monday, transferring interim operations of the ports to Danish shipping giants A.P. Moller-Maersk and Swiss-based Mediterranean Shipping Co. The notice formalized a Supreme Court ruling last month that the concessions for the Balboa and Cristobal terminals near the Panama Canal, which Panama Port Company (PPC), a subsidiary of CK Hutchison, had held for more than two decades, were unconstitutional. The Panamanian government on Monday formally assumed control of the port facilities, including cranes, vehicles, computer systems and software under a decree aimed at ensuring uninterrupted operations until a new concession is awarded within 18 months.

6. China Leaves Benchmark Lending Rates Unchanged as Beijing Signals Tolerance for Stronger Yuan

China's central bank kept its benchmark lending rates unchanged Tuesday as authorities navigate a balancing act of supporting a slowing economy while maintaining currency stability. The People's Bank of China held its 1-year and 5-year loan prime rates at 3% and 3.5%, respectively, keeping them steady for a tenth straight month despite stuttering economic growth. The 1-year rate serves as the benchmark for most new and outstanding loans, while the 5-year level influences mortgages. The world's second-largest economy showed signs of slowing down in the final quarter of last year, expanding 4.5% year on year, its slowest pace since the country lifted its stringent Covid curbs in late 2022.

7. EU Postpones Vote on U.S. Trade Deal After Trump's Latest Tariff Threat

Europe warned Monday that its hard-fought trade deal with Washington could now be in jeopardy after President Donald Trump unveiled a sweeping 15% tariff on all imports over the weekend, prompting the European Parliament to postpone a planned vote on the agreement, according to Reuters. Trump's move came after the U.S. Supreme Court on Friday struck down his global tariffs policy, implemented last spring, that had upset the long-standing global trading order. The president reacted to the Supreme Court's judgment by initially announcing a new universal 10% levy, using a different legal framework for the latest tariffs, but then increased the global tariff rate to 15% — the legal maximum which can be in place for 150 days before congressional approval is required.

8. UK Companies Seek Deeper Ties With Europe as Trump Tariffs Fuel Uncertainty, Business Groups Say

British companies are seeking deeper trade ties with Europe, business groups told CNBC, as U.S. President Donald Trump unveiled a sweeping 15% tariff on all imports after the Supreme Court struck down previous levies. New tariffs would mark a 50% increase on the level negotiated last year in a trade deal between the U.K. and the U.S., making the country one of the worst hit, according to analysis from think tank Global Trade Alert. While U.S. Trade Representative Jamieson Greer said the administration "expects" to stand by trade deals, the U.K. government is reportedly in ongoing discussions with counterparts in America. The seesawing uncertainty is increasingly forcing U.K. businesses to look to closer alignment with the European Union and European countries, as they hunt for predictable trade partnerships, groups which represent U.K. businesses told CNBC.

9. IBM Is the Latest AI Casualty. Shares Tank 13% on Anthropic Programming Language Threat

IBM became the latest casualty of AI disruption fears, with shares plunging 13% on Monday after Anthropic outlined new programming capabilities for its Claude Code product. The selloff reflects growing investor anxiety that advanced AI coding tools could disrupt traditional software and IT services companies. Anthropic's Claude Code Security tool, recently unveiled, is capable of autonomously finding and patching software vulnerabilities, raising questions about the future demand for human-led programming and cybersecurity services. The decline added to broader market jitters as AI-driven disruption fears continued to weigh on technology stocks across the board.

10. FedEx Sues for Refund of Trump Tariffs, Days After Supreme Court Ruling

Federal Express on Monday sued the U.S. government, seeking a "full refund" of the money the shipping giant paid for tariffs unilaterally imposed last year by President Donald Trump, which the Supreme Court ruled last week were illegal. FedEx's suit appears to be the first filed by a major American company seeking a refund for tariffs after Friday's Supreme Court decision. Other companies filed lawsuits staking claims to their refunds before the high court ruled that the tariffs Trump imposed under the International Emergency Economic Powers Act are illegal. Those suits, whose plaintiffs include retail warehouse club giant Costco, remain pending at the U.S. Court of International Trade in New York, the same court where FedEx filed its lawsuit.

11. AST SpaceMobile Stock Gains Nearly 5% After $30M Defense Contract Win

AST SpaceMobile Inc shares rose 5% Monday following the company's announcement of a $30 million prime contract with the United States Space Development Agency for the Europa Track 2 Commercial Solutions program. The agreement, executed under the Hybrid Acquisition for proliferated Low-earth Orbit (HALO) program, will utilize AST SpaceMobile's BlueBird satellite constellation to demonstrate resilient, low-latency tactical satellite communications directly between government end devices. The contract marks the first-ever prime contract award supported by AST SpaceMobile USA, a wholly owned defense subsidiary of the company. Under the Other Transaction agreement, AST will demonstrate how its space-based architecture can enable high-bandwidth data transport directly from low Earth orbit for military applications.

12. PayPal Attracts Takeover Interest – Shares Surge 6%, Bloomberg News Reports

Digital payments company PayPal is attracting takeover interest from potential buyers after a stock slide, Bloomberg News reported on Monday, citing people familiar with the matter. The payments firm has fielded meetings with banks amid unsolicited interest from suitors, the report said, adding that at least one large rival is looking at the whole company, while some other suitors are only interested in certain PayPal assets. Buyer interest in PayPal is still at a preliminary stage and may not lead to a transaction, the Bloomberg report said. PayPal, which has a market capitalization of more than $38 billion, declined to comment on the report. Shares of the company were last up 7% in afternoon trading.