AI Bite Back? IBM Crashes 13%!

AI fears intensify, tariff risks back, crypto tumbles, pharma shockwave — and Amazon still spending big. Here’s what Singapore investors should know before tonight’s US session 👇

📉Wall Street Slides Again — AI + Tariff Risk Combo

Overnight, all three major US indices closed down at least ~1%.

What dragged markets lower?

• Renewed AI disruption fears
• Escalating tariff war concerns (new 15% tariffs effective today)
• Financials and software stocks under heavy pressure

This isn’t just random volatility — the market is repricing:

👉 AI = productivity boom
BUT
👉 AI = disruption risk to incumbents

And now add geopolitical trade tension back into the mix.

Question for the community:
Are we seeing a healthy correction… or the start of broader de-risking?

🤖IBM Crashes 13% — 25-Year Worst Drop

IBM plunged 13% — its biggest drop in 25 years.

Trigger?
Reports suggest new products from Anthropic threaten traditional programming ecosystems.

If AI can directly generate and manage complex codebases:

• Legacy IT services models could face structural pressure.
• Enterprise software pricing power may weaken.

This is the first major example of AI directly hurting a blue-chip tech incumbent.

Is this an overreaction — or the beginning of AI cannibalisation?

₿ Bitcoin Breaks $64K — Risk Appetite Weakens

Bitcoin dropped below $64,000 intraday, hitting a 2-week low and falling more than 5% from the day’s high.

Crypto often acts as:

• Liquidity proxy
• Risk sentiment gauge

With macro + tariff uncertainty rising, traders appear to be reducing leverage.

Does BTC lead equities… or follow them?

💳PayPal Jumps on Takeover Interest

After losing nearly half its market value over the past year, PayPal jumped over 5% on potential acquisition interest.

Interesting dynamic:

• Once high-growth fintech darling
• Now valuation reset → becomes takeover target?

Value investors, this one’s for you.

Would you buy PYPL standalone… or only on M&A hopes?

🏗Amazon Investing $12B — AI Infrastructure Expanding

Despite entering bear market territory earlier this month, Amazon announced a $12B investment to build its first data center campus in Louisiana.

Translation:

• AI infrastructure buildout continues.
• Capex commitment not slowing.

Markets may punish Big Tech short-term…
But long-term AI arms race is still very real.

💊Pharma Shock: Novo Nordisk -16%, Eli Lilly +5%

Novo Nordisk plunged over 16% after data showed its next-gen weight loss drug underperformed expectations relative to Eli Lilly’s competing product.

Meanwhile, Lilly rose nearly 5%.

This sector has been one of the strongest multi-year themes. Now:

👉 Is leadership consolidating around Lilly?
👉 Or is the GLP-1 trade getting crowded?

📊HIMS Earnings — Stock Drops After Hours

Hims & Hers Health fell over 8% post-market following earnings.

Telehealth remains high-beta and sentiment-sensitive. Traders should watch if weakness spills over to growth healthcare names tonight.

🏛 Macro & Event Radar

📌 Donald Trump delivers State of the Union
📌 New 15% tariffs officially take effect
📌 Apple annual shareholder meeting
📌 Tempus AI (TEM) reports after hours

Macro + policy + earnings all collide in one session.

Volatility likely elevated.

🎁 COMMENT & EARN!

• Is this a temporary AI scare or structural shift?
• Would you buy IBM after a 25-year worst drop?
• BTC below $64K — buying opportunity or risk-off warning?

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