IBM Plunges 13% in Worst Rout Since 2000; Visa and Mastercard Sink on AI Fears

By / / Breaking News

Key Takeaways

  • IBM (IBM) shares plummeted 13%, marking the technology giant's sharpest one-day decline since the year 2000.
  • Visa (V) and Mastercard (MA) saw significant sell-offs, with Visa posting its biggest drop since June following a social media post regarding AI's impact on the payments sector.
  • House Speaker Mike Johnson signaled that Congress is unlikely to codify Donald Trump’s 15% global tariffs, citing a lack of consensus and a recent Supreme Court ruling.
  • American Airlines (AAL) has begun a phased resumption of operations at major Northeast hubs, including JFK, LaGuardia, and Boston, following recent disruptions.
  • The Reserve Bank of Australia (RBA) reaffirmed its focus on quarterly trimmed mean inflation, suggesting that any shift toward a monthly CPI framework remains "some way off."

Tech and Payments Sector Under Pressure

IBM (IBM) experienced a historic sell-off on Monday, with shares diving 13%. This move represents the company's most significant single-day percentage drop in 26 years, erasing billions in market capitalization as investors reacted to broader tech volatility.

In the payments space, Visa (V) and Mastercard (MA) both ended the session lower after a post from Citrini regarding Artificial Intelligence sparked concerns over the long-term moat of traditional credit networks. Visa recorded its largest decline since June, while Mastercard saw its sharpest drop since April, reflecting growing investor sensitivity to AI-driven disruption in the financial services industry.

Policy Shifts: Tariffs and Retirement Savings

House Speaker Mike Johnson informed reporters that Congress is unlikely to find the necessary "consensus" to codify President Donald Trump’s proposed 15% global tariffs. This development follows a Supreme Court decision that struck down earlier levies, with senior Republicans privately indicating there is insufficient support to extend the tariffs beyond their 150-day window.

Concurrently, the Trump administration is reportedly exploring a new retirement savings plan. Sources indicate the President may officially address this proposal during the upcoming State of the Union address, potentially signaling a major shift in federal retirement policy aimed at increasing private savings incentives.

Central Bank Strategy and Geopolitics

Reserve Bank of Australia (RBA) economist Plumb emphasized that the central bank will continue to prioritize quarterly CPI data for its forecasting models. While the RBA is analyzing monthly underlying inflation measures, Plumb noted that the bank remains focused on the quarterly trimmed mean and that any formal change to its assessment framework is not imminent.

In the Middle East, the UAE and Iran foreign ministers met to discuss regional developments and bilateral ties. According to the state news agency WAM, the officials reviewed issues affecting peace and security, seeking to address mutual interests amid ongoing regional tensions and shifting diplomatic alignments.

Aviation Recovery in the Northeast

American Airlines (AAL) is working to restore its flight schedule across the U.S. Northeast. The carrier resumed operations at Philadelphia International Airport (PHL) on Monday afternoon, with the first arrival recorded at 3:07 p.m. ET.

Operations at Boston Logan (BOS), LaGuardia (LGA), and JFK International are expected to remain limited overnight, with a full resumption of service scheduled for late Tuesday morning. Travelers are advised to check flight statuses as the airline realigns its fleet following the recent operational pause.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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