Dow Jones sinks 800 points, takes S&P 500 and Nasdaq lower too — Here are five major reasons why
Published on 24/02/2026 04:06 AM
Dow Jones sinks 800 points, takes S&P 500 and Nasdaq lower too — Here are five major reasons whyFrom US President Donald Trump's tariff tirade to more fears led by Anthropic, here are five major reasons why Wall Street indices sold off sharply on Monday.By Hormaz Fatakia February 24, 2026, 4:06:33 AM IST (Published)3 Min ReadUS markets sold off on Monday to begin the final week of February on the back foot as concerns surrounding AI and tariff policies sank the benchmark indices on Wall Street.
The Dow Jones fell 820 points or over 1.6%, failing to defend the 49,000 mark. The fall also dragged the S&P 500 and the Nasdaq lower by over 1% each. With this, the S&P 500 is back in the red for 2026.
Here are five major developments that took Wall Street lower on Monday:
Anthropic At It...Again
The biggest culprit for Dow's underperformance was IBM, whose shares fell 13%, marking their biggest single-day drop since October 2000.
IBM's fall was triggered by Anthropic, whose latest blog post put one of IBM's major businesses under question with its AI-led disruption.
No Respite For Software Names
Software names that have sold-off since the start of the month saw no respite on Monday either. Microsoft shares fell 3%, while CrowdStrike was down 10%. Microsoft's fall put pressure on the Nasdaq and the S&P 500.
Not just software, the Anthropic-led concerns have rattled stocks ranging from trucking to logistics, commercial real estate and even financial services.
Unemployment Fears
The Anthropic-led AI disruption has not only rattled stocks, but has also stoked wide-scale unemployment fears. A research paper by Citrini Research over the weekend showed how the AI boom could hurt the broader economy, leading to a 10% unemployment rate.
A 7% fall in shares of American Express and a near-6% fall in Mastercard were the other major culprits in dragging the Dow lower on Monday afternoon.
Trump & Tariffs
US President Donald Trump remained defiant despite the Supreme Court trashing his IEEPA-led tariff policy last Friday.
In a multi-post tirade on Truth Social, Trump warned countries of "higher duties" if they try to "play games" with the US after the court judgment. It is still unclear whether Trump has signed any official documents putting in place the 150-day tariff levy at 15%, which he raised from 10% on Saturday evening.
Officials in the European Union have also raised concerns on the latest developments, with the European Parliament pausing work on ratifying the trade agreement reached between the bloc and the US.
The Sell-Off Aftermath
The sell-off on Wall Street led to buying interest in haven assets but sunk other asset classes. Gold prices scaled past the $5,200 an ounce mark in the spot market, while Silver spot prices neared the $90 an ounce mark yet again, currently trading near $88.
The US Dollar index continued to trade below the mark of 98, while the selling continued in Bitcoin, with the token, at one point, dropping below the mark of $64,000, taking the fall from its October 2025 highs to 50%.Continue ReadingTagsAnthropicDow JonesIBMNasdaq CompositeS&P 500