AI panic trading cools down, Asian chip stocks hit a record high, gold and silver retreat, London copper rises 2%, Bitcoin plunges

Artificial Intelligence “Panic Trading” Shows Signs of Easing; Asian Stocks and U.S. Futures Rise on Tuesday as Investor Risk Appetite Improves. Shares of Asian chipmakers like Samsung Electronics, SK Hynix, and TSMC surged to record highs, with traders viewing these companies as “minting tools” in the AI supply chain, while U.S. software, insurance, and professional services stocks remain under pressure.

Asian markets edged higher, reversing the weakness seen in U.S. markets, with the S&P 500 futures up 0.3%. South Korea’s stock market rose 2%, helping the MSCI Asia Pacific Index erase early losses and close up 0.1%. European markets are also preparing for a higher open.

As risk sentiment recovers, gold and silver prices retreated after four consecutive days of gains. U.S. Treasury yields gave back recent gains, and Bitcoin posted its worst monthly performance since the crypto crash of June 2022, falling near $63,000. The U.S. dollar spot index rose 0.1%.

This market divergence highlights the different fates of Asian and U.S. tech stocks. The MSCI Asia Pacific Index has gained 12% so far in 2026, while the S&P 500 is nearly flat, marking the strongest start for the Asian index relative to the U.S. benchmark this year. Investors are betting that Asian chipmakers will benefit from AI infrastructure buildout, while U.S. enterprise services, software, and financial intermediaries face risks of disruption from AI.

• South Korea’s stock market up 2%, Nikkei 225 up 1% intraday.
• S&P 500 futures up 0.3%.
• U.S. dollar spot index up 0.1%.
• Yen down 0.4% to 155.27 per dollar.
• U.S. 10-year Treasury yield up 1 basis point to 4.04%.
• Spot gold down 0.8% to $5,189.99 per ounce, ending a four-day rally that saw a 2.5% increase the previous day.
• Copper up 2.3% to around $13,200 per ton; aluminum also higher.
• Oil near seven-month highs. Brent crude futures up 0.8% to $72.08 per barrel, U.S. crude futures up 0.9% to $66.88 per barrel.
• Bitcoin briefly fell 2.64% to $62,858. For May, it’s down over 19%, likely to post its worst monthly performance since June 2022.

Asian Markets Decouple from U.S.

Christopher Forbes, Head of Asia at CMC Markets, said, “The AI panic trading sweeping the U.S. market is a rotation story; generative AI is re-pricing revenue models for enterprise software, professional services, and wealth management platforms. Asian indices have little exposure to this. Decoupling has begun.”

Carmen Lee, Head of Equity Research at OCBC Bank, said this trend could persist for some time. Mohit Mirpuri, Senior Partner at SGMC Capital, added, “In the first two months of this year, we saw more targeted allocations to Asia and emerging markets. This doesn’t necessarily mean structural decoupling, but it does indicate that global portfolios are broadening their exposure beyond narrow U.S. tech focus.”

The strong performance of Asian markets contrasts sharply with the U.S. On Monday, U.S. tech, delivery, and payments stocks declined after Citrini Research released a report outlining potential AI risks across industries. Ongoing uncertainty over President Trump’s tariffs has also weighed on markets.

Bloomberg strategist Mark Cranfield noted that Asian investors continue to believe companies providing “minting tools” for the AI race will benefit, with the Bloomberg Semiconductor Index significantly outperforming. The momentum among leading regional firms is so strong that even Nvidia’s poor earnings call this week has not dampened the rally.

Chipmakers are seen as core beneficiaries of AI infrastructure buildout. Investors believe that regardless of how AI reshapes business models, demand for advanced chips will continue to grow, supporting solid profit prospects for TSMC, Samsung, and SK Hynix.

AI Disruption Concerns Hit U.S. Intermediaries

Alap Shah, co-author of Citrini Research’s report, told Bloomberg TV that chipmakers, data centers, and foundational model labs are key beneficiaries of AI trading. Conversely, intermediaries like insurance companies and banks face risks. Shah said his firm has shorted some companies mentioned in the report and holds “large” positions in semiconductor stocks expected to benefit.

“We typically short a group of companies we believe will be disrupted by AI,” he said Tuesday during Asian hours. “On the other hand, we hold a large number of semiconductor stocks we believe will benefit.”

This so-called AI panic trading has become the dominant market theme, with selling spreading from software to U.S. insurance brokers, private credit firms, cybersecurity companies, and even real estate services. IBM plunged Monday, its largest drop in 25 years. Software ETF performance is heading toward its worst month since 2008.

Commodities and Currency Market Divergence

The commodities market shows divergence. Spot gold fell 0.8% to $5,170.99 per ounce, ending a four-day rally that saw a 2.5% increase yesterday. Ilya Spivak, Head of Global Macro at Tastylive, said the dollar’s strength and profit-taking drove gold lower. Copper rose 2.3% in London to around $13,200 per ton; aluminum also gained.

Oil prices near seven-month highs. Brent crude futures up 0.8% to $72.08 per barrel, U.S. crude futures up 0.9% to $66.88 per barrel. Priyanka Sachdeva, Senior Market Analyst at Phillip Nova, said, “Geopolitical factors are clearly the main driver of oil prices now; the current strength is mainly driven by expectations rather than actual supply losses.”

Federal Reserve Governor Christopher Waller said he is willing to keep rates unchanged at the March meeting if upcoming February employment data shows the labor market has “shifted to a more solid footing” after a soft 2025.

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